South Korea Passes Its ‘Chips Act’ Amid US-China Friction
- The ‘K-Chips Act’ would increase tax credits for firms
- Tech sector is a major driver of the trade-reliant economy
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South Korea’s parliament easily approved a bill Thursday to boost the country’s powerhouse semiconductor industry by giving firms tax breaks to spur investments.
The legislation known as the “K-Chips Act” would increase the tax credit to 15% from the current 8% for major companies investing in manufacturing facilities, while smaller and medium size firms would see the tax break go to 25%, up from the 16% now. The measure is expected to boost domestic investment for South Korean tech companies such as Samsung Electronics Co. and SK Hynix Inc.