Yoon’s tax cut plans for semiconductor industry set up clash with opposition



Analysis Yoon’s tax cut plans for semiconductor industry set up clash with opposition Seoul likely to frame proposal as necessary for national security, though it comes at time of economic uncertainty John LeeJanuary 3, 2023 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON President Yoon Suk-yeol attends a New Year's meeting, Jan. 2, 2022 \| Image: ROK Presidential Office South Korea’s two largest political parties briefly put aside their differences in late December to pass a government budget for 2023, but the resulting compromise satisfied few — including the Yoon administration. Business communities throughout South Korea have complained about the meager tax cuts that the two opposing camps agreed to pass. As a result, the Yoon administration is looking for battles that it can win, targeting tax breaks for the strategically important semiconductor industry. The main opposition party will continue to be the administration’s main stumbling block, however, and amid the uncertainty of South Korea’s current economic situation, © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01South Korea’s won faces a new test as foreign bond buying loses momentum 02Trump’s Russian diesel deal may leave South Korea’s refining boom intact 03Trump’s Alaska LNG claim shows who really runs the US-South Korea alliance 04South Korea’s missile defense push raises new questions over wartime stocks 05South Korea bank hacks expose weak links beyond core financial systems 06Lee-Zelensky feud exposes South Korea’s widening Ukraine policy dilemma 07Lee Jae Myung’s ‘pacemaker’ strategy tests South Korea’s leverage with Trump 08Trump’s Korea investment victory lap masks safeguards Seoul still controls

Analysis

Yoon’s tax cut plans for semiconductor industry set up clash with opposition

Seoul likely to frame proposal as necessary for national security, though it comes at time of economic uncertainty

John LeeJanuary 3, 2023

Yoon’s tax cut plans for semiconductor industry set up clash with opposition

President Yoon Suk-yeol attends a New Year's meeting, Jan. 2, 2022 | Image: ROK Presidential Office

South Korea’s two largest political parties briefly put aside their differences in late December to pass a government budget for 2023, but the resulting compromise satisfied few — including the Yoon administration.

Business communities throughout South Korea have complained about the meager tax cuts that the two opposing camps agreed to pass. As a result, the Yoon administration is looking for battles that it can win, targeting tax breaks for the strategically important semiconductor industry.

The main opposition party will continue to be the administration’s main stumbling block, however, and amid the uncertainty of South Korea’s current economic situation,

Yoon’s tax cut plans for semiconductor industry set up clash with opposition

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John Lee