Yoon Suk Yeol, the president of South Korea, has said that the country will extend tax credits on investments in its semiconductor industry.

The country began offering large tax breaks to semiconductor companies investing in domestic business in January 2023. The tax breaks are currently set to expire at the end of 2024.

Speaking at a meeting with chip industry officials and students, Yoon said: "When I talk to heads of state, what I talk about most about South Korea is BTS and semiconductors.

"Tax deduction for semiconductor investments is supposed to expire this year, but we will extend the effect of the law to continue with investment tax deduction.”

The president said that the country expects a total investment of more than $470 billion in a new mega chip cluster being built in Yongin, south of Seoul. He said that the cluster, which has been touted as the world’s largest high-tech chipmaking complex, would lead to the creation of at least 3 million jobs over the course of 20 years.

Samsung has said that it plans to invest $230 billion in South Korea’s chipmaking base over the next two decades through to 2042.

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