Lee Jae-myung's Strategic Semiconductor Push Amid Global Supply Concerns

Lee Jae-myung, South Korea's Democratic Party's presidential candidate, promises a 10% production tax credit for domestic semiconductor manufacturers, aligning with global efforts to secure chip supply chains and counter U.S. policy changes. He leads the polls ahead of the June 3 election, mirroring global support for the domestic chips industry.

South Korea's Democratic Party presidential hopeful, Lee Jae-myung, announced plans to introduce a 10% production tax credit for semiconductors produced and sold within the country, should he win the upcoming elections. This initiative aims to bolster South Korea's semiconductor industry amidst shifting global supply chain dynamics.

With Lee leading opinion polls for the June 3rd election, his policy resonates with international strategies aimed at reinforcing local chip manufacturing. These moves are in response to growing concerns about the effects of U.S. policy shifts on global supply chains.

Notably, last month, former U.S. President Donald Trump's enactment of an executive order to expedite domestic investments has sparked debate, especially after criticism of the bipartisan CHIPS Act, which was designed to boost U.S. semiconductor production.

(With inputs from agencies.)