South Korea has passed legislation giving tax breaks to its semiconductor companies in a bill being labelled as the"Korean Chips Act." At the same time, the nation's trade minister repeated its complaints that the criteria for Korean companies to access US funding are unpalatable in a possible sign of growing protectionism in the worldwide chip market.
Raising the deduction rate from 8 percent to 15 percent would save some 2.5 trillion won in taxes for the local chip industry, according toFor small and medium-sized enterprises, the tax credit rate is set to be raised from 16 percent to 25 percent, in moves designed to bolster domestic investment in key technology sectors.
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