<Anchor> The
government has decided to greatly reduce taxes for companies investing in facilities for national strategic industries such as semiconductors and displays.
This is because the semiconductor industry, which is the key driver of our economy, is in crisis, and it also has the nature of a counter-response to the semiconductor development policies of rival countries, including the United States and Japan.
Reporter Jeong Yeon reports first.
<Reporter>
For facility investments in 12 national strategic technologies such as semiconductors, batteries, and displays, large corporations have decided to cut taxes even more by increasing the deduction rate from the current 8% to 15%, and for small and medium-sized businesses from 16% to 25%.
In addition, if the investment amount increased this year compared to previous years, an additional 10% of the increase is deducted.
For example, if Samsung Electronics invests 1 trillion won in semiconductor production facilities this year, the current tax cut is 80 billion won, but it will reduce taxes by 150 billion won in the future.
This is because of the judgment that the semiconductor industry, the core engine of the economy, is in crisis amid the recent global economic downturn.
[Chu Kyung-ho/Deputy Prime Minister for Economy: The future industry cannot gain an edge without semiconductor competitiveness.
In addition to securing global competitiveness, we have prepared a groundbreaking tax support plan to restore the overall investment sentiment of companies.]
Semiconductors are the overwhelming No. 1 item, accounting for 20% of Korea's exports, and exports have been declining for five consecutive months since August last year.
Declining exports are leading to a sharp drop in production, and investment in preparing for the future may also shrink.
[Do Won-bin/International Trade Association Research Institute: There was concern that major semiconductor companies could reduce their facility investment, but it seems that this can be mitigated.]
Semiconductors are emerging as a weapon in the global supply chain .
We also considered the support measures that competing countries are scrambling to put forward.
The United States provides a 25% tax credit for semiconductor facility investment, and Taiwan has also proposed an amendment to the law to expand the deduction rate to 25%.
(Video coverage: Park Young-il, Video editing: Cho Moo-hwan
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Tax loss alone expected to be 3.6 trillion