[사설]The Semiconductor Act is a long awaited decision… It should lead to cooperation for the people’s livelihood and economy

The ‘K Chips Act’ to ease the burden on Korean companies embroiled in the global semiconductor war and expand investment is expected to be passed by the National Assembly with an agreement between the ruling and the opposition parties this month. This is because the Democratic Party has agreed to the government’s plan to cut taxes by 15% from the investment of semiconductor facilities by large companies. After Yoon Seok-yeol’s administration came to power, the National Assembly, which had been deadlocked due to serious opposition and opposition parties for about 10 months, finally reached a consensus.

The Power of the People and the Democratic Party passed the review of the Taxes Sub-Committee of the Planning and Finance Committee on the day before yesterday that the tax credit rate for investment in semiconductor facilities for large corporations will increase from 8% to 15 %, and for small ones. and medium-sized enterprises from 16% to 25%. In addition to the government’s plan, the opposition and opposition parties decided to include hydrogen technology and future means of transportation in national strategic technologies to give them the same benefits. As it was dealt with by agreement between the opposition parties and the opposition parties, it is expected to pass smoothly at the full meeting of the Equipment Committee on the 22nd and the full meeting on the 30th. Samsung Electronics’ investment plan to build a high-tech semiconductor cluster in Yongin, Gyeonggi Province by investing 300 trillion won over the next 20 years is gaining momentum.

The K-Chips Act was passed by the National Assembly at the end of last year after the Ministry of Strategy and Finance accepted the 8% bill, concerned about a reduction in tax revenue, while the ruling party, which was trying to raise the rate deduction for investment in conglomerate semiconductor facilities from 6% to 20%, and the opposition, which demanded 10%, faced each other. . Criticism was rife that the level of support was extremely low compared to the US and Taiwan, which provide tax breaks of up to 25% of investment in facility and research and development. In the end, the president ordered a review, and the Democratic Party, which had said that “tax cuts for large corporations are not allowed,” changed its attitude, and the clue to review the law was solved.

This bipartisan agreement can be an opportunity to transform the atmosphere of the National Assembly, which has been holding back public livelihoods and economic bills through harsh conflict, into productive governance. Recently, People’s Power Representative Kim Ki-hyun and Democratic Party Representative Lee Jae-myeong also agreed on the need for cooperation in the field of public livelihood. We need to build momentum and deal with bills that will actually help ordinary people and companies suffering from high prices, high interest rates and a prolonged economic recession.

In particular, there is an urgent need to follow up legislation on the 8-hour overtime work system for small and medium-sized businesses (SMEs) with less than 30 employees, whose sunset deadline expired at the end of last year. Workers whose incomes have decreased because they cannot work overtime shout, “Why are you blocking the opportunity to work?” The ruling and opposition parties should put their heads together to negotiate bills to support the common people and small traders who suffer from high electricity and gas rates. Legislation to prevent charter fraud, such as a bill allowing tenants to check unpaid landlord tax in advance, should no longer be delayed.