Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, 

speaks at the Economic Ministers’ Meeting held at the Government Complex Seoul in Jongno-gu, Seoul, on the 14th. (Yonhap)

According to Pulse by Maeil Business News Korea,

The South Korean government plans to designate artificial intelligence (AI) as a national strategic technology, potentially providing increased tax benefits for AI.

During a ministerial meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok on Thursday, the proposal to add AI to the current list of seven strategic technology sectors was outlined.

Currently, the list includes categories, including semiconductors, secondary batteries and vaccines, with only high-bandwidth memory (HBM), known as AI chips, being AI-related on the list.

“An amendment to the special tax law is likely to be pursued to include AI in the national strategic technology categories,” said an official from the economy ministry.

Reclassifying AI as a national strategic technology will mean more tax incentives. Research and development (R&D) tax credits for small and medium-sized enterprises will increase to 40-50 percent from 30-40 percent, while equipment investment tax credits will increase to 25 percent from 18 percent.

The government also outlined plans to accelerate development in the maintenance, repair and overhaul (MRO) sectors for defense, nuclear power, shipbuilding and aviation.

In a phone call with Korean President Yoon Suk Yeol after his election, U.S. President-elect Donald Trump acknowledged Korea’s expertise in naval shipbuilding.

“With the upcoming new U.S. administration, the economic team will be prepared to respond to newly emerging challenges from external uncertainties,” Minister Choi said.


By Moon Ji-woong and Chang Iou-chung

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (November 15, 2024)