Last year, the government submitted a tax law revision bill to the National Assembly to reduce Korea’s corporate tax rate by 3 percentage points. It was a barometer that measures the current government’s major direction of tax policy to expand corporate investment in times of economic recession in order not to fall behind in the global tax rate competition. However, it was only reduced by 1% against huge opposition opposition. I was peeing on my feet. And another bill of greatest interest was to increase the tax credit rate for investment in a facility by semiconductor companies. This measure was pushed back from the double digit cut proposed by the opposition and opposition parties, and the bill rose from 6% to 8%.
Then, President Yoon Seok-yeol was furious. Regarding the ‘1 percentage point corporate tax rate cut’, President Yoon expressed regret, saying, “The cut in the top corporate tax rate to improve corporate global competitiveness and expand investment was not reflected full because the opposition has grabbed the majority of seats.” He then directed the Ministry of Strategy and Finance to actively consider ways to further expand tax support for national strategic industries such as semiconductors. President Yoon gave such an order, saying, “It is unfortunate that the tax support plan proposed by the special committee on semiconductors, which was formed with the launch of the Yoon government, was not discussed sufficiently.” It is a matter of concern for the core technology,” he said. added up
President Yoon’s order to revise the tax credit rate for semiconductors was read as a hasty decision that ‘shouldn’t go this way’ for semiconductors, the rice of the high-tech industry, even if the rate corporate tax reduced by 1% only because of fierce opposition from the opposition.
Accordingly, on the 3rd, the Ministry of Strategy and Finance proposed a plan to double the tax credit rate for investment in semiconductor facilities from 8% to 15% for large companies. If this bill passes the National Assembly, it is expected that the tax burden of companies will be reduced by 3.6 trillion won next year alone.
However, those who oppose investment in facilities by conglomerates immediately voiced opposition, saying that Samsung Electronics will benefit from the tax credit by 4.7 trillion won and SK Hynix by 1.1 trillion to win In addition, there are concerns in the political areas of Yeouido, that if the original proposal of a 10% increase is opposed to the government’s plan, it will pass the National Assembly.
The increase in the tax credit rate for investment in a facility by semiconductor companies is an important bill that determines how to protect the rice of the industry and how to protect it. Still, it seems that many people are opposed to this bill. why oppose It appears to be political reasons, preferential treatment for large companies, and unfairness in the tax credit system. However, if it is blocked for political reasons, it will be criticized as an act that hinders the growth of the Republic of Korea, and if it is preferential treatment for large corporations, it is wrong that companies receiving tax credits will not grow their investment and the tax credit money will go into the pockets of the owners of large corporations. I think it comes from thinking. In a word, it is a mistake. Samsung Electronics and SK Hynix are shareholder-owned companies, which are investors with stocks. Of course, the owners of large conglomerates are the majority shareholders, but they also eat three meals a day, not four. Of course, I drive a good car, but if you agree that you should drive a car that is that safe, I don’t think you can object.
Incidentally, the current semiconductor tax credit rate has been raised to 25% in the US and 25% in Taiwan, a competitor. In addition, China also announced that it will nurture the semiconductor industry by spending 187 trillion won by 2025. In that regard, it is the same as giving up rice, which is our lifeline, if we is the only one behind us while competing countries draw up aid measures one after another. It would be an action incompatible with the ‘internal enemy’ who intends to make our country powerless.
When companies live, so does the nation. When corporate wealth grows, so does the nation. Only when the state has strength can it stop the 30-year invasion of Mongolia and the 36-year Japanese occupation, which was so serious. Of course, North Korea’s nuclear weapon overhead is also the same. It has been a long time since the economy (taxation) became uncertain.
