South Korea Plans Bigger Tax Breaks to Boost Its Chip Sector (1)

South Korea’s government plans to hike tax breaks for big chip companies’ capex to as much as 25%, after President Yoon Suk Yeol called for bigger incentives to fuel the critical sector.

Big companies will get a tax credit of 15% on investments on manufacturing facilities, up from the planned 8% under legislation passed last month, according to a finance ministry statement. Smaller companies’ capex spending will get a tax break of 25%, up from 16%. Any additional investment in chipmaking in 2023 will get another 10% tax break, the ministry said. The broadened plan, which will be proposed this ...