The Ministry of Strategy and Finance announced on Jan. 18 a revised enforcement rule of the Restriction of Special Taxation Act, which added five display technologies to the list of the national strategic technologies. The five included three panel technologies — AMOLED, micro LED and QD nanomaterial display. The remaining two were related to deposition/coating materials for panels, and thin film transistor (TFT) forming equipment and materials.
BusinessKorea
Manufacturing is a geopolitical problem. The Korean government is worried about the Chinese encroachment on its OLED dominance, and these tax breaks should help Samsung and LG, who probably don’t need the help, but the real benefit is going to be in R&D and the emergence of startup technologies. Also, the Korean government shines when it comes to supporting and nurturing startups, and the university system is pretty good at getting involved, too. But, let’s be honest, Korean companies are also likely to benefit from the antagonism towards China and its manufacturing power because of the country is considered an ally.
