Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung-il held a meeting on current economic issues to discuss ways to refine the domestic production tax credit. The meeting also covered plans to advance three core social policy areas: housing, jobs and consumer finance for lower-income households.
The Ministry of Finance and Economy said on the 25th that the meeting was held that day, chaired by Lee. Attendees included Minister of Trade, Industry and Energy Kim Jung-kwan, Minister of Climate, Energy and Environment Kim Sung-hwan, Minister of SMEs and Startups Lee So-young, Minister of Budget and Planning Park Hong-keun, Financial Services Commission Chairman Lee Eok-won, Senior Presidential Secretary for Economic Growth Moon Shin-hak and Presidential Adviser for Fiscal Planning Ryu Duck-hyun.
The meeting addressed ways to supplement the domestic production tax credit. In its tax reform plan announced in August, the government said it would introduce the credit, which cuts taxes based on domestic output. Eligible sectors include solar and wind power, secondary batteries, semiconductors, key materials and artificial intelligence robot components, while electric vehicles and other industries were left out. Excluded sectors, led by the EV industry, have since pressed the government to broaden the scope.
At a parliamentary audit by the National Assembly's Finance, Economy and Planning Committee on the 22nd, Lee cited difficulties facing the EV industry and said the government would gather views from the field and review whether to adjust the program.
The ministry plans to finalize its position after further consultations among relevant agencies and additional input from industry and other stakeholders, based on the discussions at the meeting.