South Korea presidential candidate Lee Jae-myung pledges chip tax credit
Lee Jae-myung delivers his speech after winning the final race to choose their candidate for upcoming presidential election during a national convention of South Korea's Democratic Party in Goyang, South Korea, on Apr 27, 2025. (Photo: REUTERS/Kim Hong-Ji)
SEOUL: South Korea's Democratic Party presidential candidate Lee Jae-myung pledged in a Facebook post on Monday (Apr 28) to bring in a production tax credit of up to 10 per cent for semiconductors manufactured and sold domestically, if he is elected.
Lee is the frontrunner in opinion polls to win the Jun 3 election, and his pledge echoes moves by other countries to shore up support for their domestic chips industry and protect supply chains amid concerns over the impact of US policy changes.
Last month, US President Donald Trump signed an executive order setting up a new entity to take over the CHIPS Act programme and speed up corporate investments in the United States.
Trump has repeatedly criticised the bipartisan CHIPS Act, signed by former President Joe Biden in August 2022, which aimed to incentivise bringing semiconductor manufacturing to the United States.
