Tax chief nominee pledges crackdown on market manipulation while easing business audit burden

Lee Jae-myung looks through a magnifying glass at SK hynix’s high-bandwidth memory (HBM) products on display at the exhibition booth during his visit to the Ulsan AI Center | Image: ROK Presidential Office (June 20, 2025), edited by Korea Pro

Industries minister nominee Kim Jung-kwan outlined plans Thursday to introduce production tax credits for semiconductors and secondary battery materials, mirroring the U.S. Inflation Reduction Act (IRA). Speaking at his confirmation hearing, Kim stated that “due to U.S. tariff measures and the rise of protectionism, the free trade and international norms that once drove our exports no longer function normally,” stressing the need for South Korea to respond to the “subsidy competition” with major countries like the U.S. and China. 

Kim’s proposal includes tax credits for domestic production in semiconductor and battery sectors, facing increasing competition from China and the U.S. He also highlighted plans for a comprehensive trade structure overhaul. Kim additionally addressed South Korea’s energy strategy, focusing on a “growth-oriented green transition” to achieve carbon neutrality, alongside expanding renewable energy and supporting nuclear power as well, including small modular reactors (SMRs). 

Industries minister nominee Kim Jung-kwan outlined plans Thursday to introduce production tax credits for semiconductors and secondary battery materials, mirroring the U.S. Inflation Reduction Act (IRA). Speaking at his confirmation hearing, Kim stated that “due to U.S. tariff measures and the rise of protectionism, the free trade and international norms that once drove our exports no longer function normally,” stressing the need for South Korea to respond to the “subsidy competition” with major countries like the U.S. and China. 

Kim’s proposal includes tax credits for domestic production in semiconductor and battery sectors, facing increasing competition from China and the U.S. He also highlighted plans for a comprehensive trade structure overhaul. Kim additionally addressed South Korea’s energy strategy, focusing on a “growth-oriented green transition” to achieve carbon neutrality, alongside expanding renewable energy and supporting nuclear power as well, including small modular reactors (SMRs). 

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