South Korea’s Democratic Party presidential candidate Lee Jae-myung pledged on Monday via a Facebook post to introduce a production tax credit of up to 10% for semiconductors manufactured and sold domestically, should he be elected.
Lee, who is currently leading in opinion polls ahead of the June 3 election, is echoing similar moves by other countries aiming to strengthen their domestic semiconductor industries and protect supply chains, particularly in light of concerns regarding the impact of changes in US policy.
Last month, US President Donald Trump signed an executive order establishing a new entity to oversee the CHIPS Act programme, designed to accelerate corporate investments in the United States. Trump has frequently criticised the bipartisan CHIPS Act, signed by former President Joe Biden in August 2022, which sought to incentivise semiconductor manufacturing within the US.
Faridah Abdulkadiri
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