Industries minister nominee Kim Jung-kwan outlined plans Thursday to introduce production tax credits for semiconductors and secondary battery materials, mirroring the U.S. Inflation Reduction Act (IRA). Speaking at his confirmation hearing, Kim stated that “due to U.S. tariff measures and the rise of protectionism, the free trade and international norms that once drove our exports no longer function normally,” stressing the need for South Korea to respond to the “subsidy competition” with major countries like the U.S. and China. 

Kim’s proposal includes tax credits for domestic production in semiconductor and battery sectors, facing increasing competition from China and the U.S.