South Korean presidential candidate promises chip tax credit
South Korean presidential candidate Lee Jae-myung has vowed to introduce a production tax credit of up to 10% for domestically manufactured and sold semiconductors if elected, as global competition over chip production intensifies.
In a Facebook post published Monday, the Democratic Party candidate positioned the pledge as a strategic move to safeguard South Korea’s critical semiconductor industry and secure supply chain stability amid shifting international trade policies.
Lee, who currently leads in opinion polls ahead of the June 3 presidential election, joins a growing list of world leaders seeking to reinforce national chip-making capabilities. His proposal mirrors initiatives in countries like the United States, where governments are ramping up efforts to attract investments and reshore semiconductor manufacturing.
The announcement comes against the backdrop of recent U.S. policy shifts. Last month, President Donald Trump signed an executive order to restructure the CHIPS Act program, transferring oversight to a new entity aimed at accelerating domestic semiconductor investments. Trump has been openly critical of the bipartisan CHIPS Act—originally enacted by former President Joe Biden in 2022—which was designed to incentivize chip production on American soil.
As nations race to secure their technological independence and navigate geopolitical tensions, Lee’s semiconductor tax credit proposal underscores the strategic importance of the industry to South Korea’s economy and its global tech leadership.
“We must act decisively to protect and strengthen our semiconductor industry, the backbone of our economy and a pillar of our future growth,” Lee wrote in his post.
If enacted, the proposed tax incentive could provide a competitive boost to major South Korean chipmakers like Samsung Electronics and SK Hynix, while signaling Seoul’s commitment to maintaining its position in the global semiconductor race.
