South Korea semiconductor and EV batteries this two fields will provide more than $1 billion in tax benefits.
South Korea semiconductor and EV batteries : According to Jiwei.com, the South Korean government announced on July 26 that it will provide up to 50% R&D tax concessions and up to 20% of capital expenditure tax concessions in three fields: electric vehicles (EV) batteries, semiconductors and vaccines. The total incentive is estimated to reach 1.16 trillion won ($1.008 billion).
According to BusinessKorea, South Korea semiconductor and EV batteries the tax preference ratio of research and development expenses for large and medium-sized enterprises can reach up to 40%, and the tax preference ratio of capital expenditure can reach up to 8%. And SMEs will reach 50% and 20% respectively.
This incentive is valid for three years and will take effect in the second half of this year.
In the semiconductor industry, the Korean government will provide incentives to promote the balanced growth of the memory chip and SoC industries and enrich the industrial ecosystem, including materials, components and equipment.
In the field of memory chips, the South Korean government has designated the design and production of DRAM design and production of 170 layers and more of NAND flash memory as the national core technology. In terms of SoC, OEM manufacturing of 7nm and below, as well as power semiconductor design and production for automobiles and energy efficiency improvement, have also been designated as national core technologies.
“Big and small businesses are expected to receive economic benefits of 88.3 billion won and 27.7 billion won, respectively,” said one person in charge of the industry. He pointed out that in the semiconductor industry, timely strategic investment is very important. Therefore, it is most important now to implement South Korea semiconductor and EV batteries.