Global Daily Tax News, Korean K-Chips Act Passes Subcommittee, (Feb 12, 2025)

South Korea is progressing legislation to extend and enhance tax breaks for semiconductor producers.

The legislation would enhance the current tax credit for semiconductor ventures, from 15 percent to 20 percent for large businesses and from 25 percent to 30 percent for small- and medium-sized enterprises.

The so-called K-Chips Act would also extend the tax credit offering for seven years, until 2031.

The proposals, which have been under discussion for over a year, were approved with amendments by a Strategy and Finance Committee subcommittee on February 11, 2025.

The subcommittee also approved the extension of existing tax breaks for research and development in innovative technologies until 2029.