South Korea Introduces Domestic Production Tax Credit for Semiconductors, Batteries, Biotech

According to E Daily, South Korea announced on July 14 a domestic production tax credit policy targeting semiconductors, secondary batteries, biopharmaceuticals, future vehicle components, and critical minerals. Under the initiative, companies producing these strategic goods domestically will receive corporate and income tax deductions based on production volumes and unit pricing. The government plans to finalize implementation details through amendments to the tax law by the end of 2026. Samsung Electronics, SK Hynix, POSCO Future M, Ecoprofilm, Celltrion, and Korea Zinc are among the companies expected to benefit from the expanded support.
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