The National Assembly passed an amendment to the Act on Restriction of Special Taxation on March 30 to expand tax deduction rates for businesses that invest in “national strategic” industries. Industries that the law covers include semiconductors, batteries, vaccines, displays, electric vehicles and self-driving cars. Large businesses will see their tax credits increase from 8% to 15%, while small and medium enterprises will see credits increase from 16% to 25%. The law also provides an additional 10% tax deduction for this year only so that those businesses can receive tax benefits ranging from 25 to 35% this year.

Popularly called the K-Chips Act, a 25% to 35% tax credit rate for semiconductor manufacturers makes it the world's highest. The law will likely come into effect in early April.