Industry

Semiconductor, battery direct refund scheme in focus ahead of July tax reform plan

A proposed direct refund scheme that would pay out semiconductor and battery investment tax credits in cash has emerged as a key issue ahead of the government’s late-July tax reform plan. South Korea largely relies on corporate tax credits that only apply when companies owe tax, limiting benefits for firms in early loss-making years. Industry groups say this can delay investment and call for U.S.-style refunds. Fiscal authorities are reviewing possible revenue losses.

Games & Commerce

Rep. Cho Seung-rae proposes tax credit bill for game and music production costs

A bill to expand production cost tax credits to the game and music industries has been introduced in South Korea’s National Assembly. Democratic Party lawmaker Cho Seung-rae proposed amendments to the Restriction of Special Taxation Act to apply tax credits to costs for producing game and music content. The bill would change the scope from “video content” to “cultural content” and add games, records, music files and music videos as eligible items.