The main opposition Democratic Party (DP) proposed on Wednesday a set of bills aimed at fostering the semiconductor, renewable energy and future car industries through government support and tax incentives.
The envisioned bills center on nurturing carbon neutral industries by drawing up a government support plan and expanding tax cuts for facility investments on strategic industries, such as chips, vaccines, renewable energy and future transportation.
The revision bill on the tax deduction is based on the government's proposed tax code revision that increases the tax credit rate for investments by conglomerates from 8 percent to 15 percent and those for smaller companies from 16 percent to 25 percent. It expanded the scope of strategic industries that would be eligible for the tax deduction.
DP floor leader Park Hong-keun stressed the importance of bipartisan cooperation to swiftly pass the bill in the wake of global economic headwinds.
The DP has dubbed the bills as the Korean version of the U.S. Inflation Reduction Act, which aims to better address climate change by expanding support for clean energy. The act, which gives tax credits to buyers of electric vehicles assembled only in North America, had raised concerns it would hurt South Korean automakers Hyundai Motor Co. and Kia Corp. in the U.S. market.
Source: Yonhap News Agency