Government to Provide Tax Reductions and Financial Assistance to Revive Chip Industry

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On Wednesday, South Korea’s Finance Minister declared that the government will do all it can to support the nation’s chip sector through tax cuts and other financial aid in light of the current downturn. Choo Kyung-ho noted that the chip industry is a vital part of the economy, accounting for 18.9 percent of exports and 41.5 percent of manufacturing investments in 2022.

During his visit to a SK hynix Inc. production line in southern Seoul, Minister Choo pointed out that the significance of the chip sector will only increase as the demand for AI services and digital transformation rises. Furthermore, he applauded SK hynix’s plan to expand production facilities for high bandwidth memory products, which he believes will help maintain a leading position in the next-generation semiconductor market.

In addition, the government will continue to offer tax reductions for investments in the industry, and has allocated 2.8 trillion won (2 billion USD) in the next year’s budget to back the chip sector. Finance Minister Choo Kyung-ho signed a visitors’ book during his trip to the SK hynix Inc. production line in Icheon, 58 kilometers south of Seoul.

Finance Minister Choo Kyung-ho signs a visitors' book during his trip to a production line of SK hynix Inc. in Icheon, 58 kilometers south of Seoul, on Sept. 27, 2023, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)

colin@yna.co.kr
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