Parliamentary Finance Committee passes amendments to increase tax credit rate for chipmakers

The National Assembly's Strategy and Finance Committee on Tuesday passed an amendment to the so-called "K-Chips Act" to give bigger tax breaks to support the nation's chip industries.

Specifically, this would raise the integrated investment tax credit rate for semiconductor companies by 5 percentage points from the current level: 15 percent to 20 percent for large, and mid-sized companies and 25 to 30 percent for small businesses.

This is expected to pass a plenary session at a later date.

The Committee also discussed other tax breaks including extending the tax credit period on semiconductor R&D until 2031 while other national strategic industries to 2029.