President Lee calls for review of introducing direct subsidies beyond production tax credits

[Financial News] President Lee Jae-myung said on the 7th that it was necessary to consider a “hybrid” support plan related to the production tax credit system, in which some direct subsidies would be introduced first and later deducted from tax credits.
At the public briefing on the Korean Green Transition (K-GX) that day, President Lee said, “Let’s go beyond production tax credits and introduce direct subsidies,” adding, “If we believe that the industry in this area absolutely must be developed, we could take on that risk proactively.”
He went on to propose, “There’s also a way to provide some subsidies and then deduct them from the production tax credit refund later. In simple terms, it’s paying in advance.”
He also said, “We should provide subsidies, but create some kind of middle-ground arrangement to deduct [the credit amount] when the production tax credit is refunded later.”
In his closing remarks, President Lee stressed, “The tasks facing the Republic of Korea today are recovery and growth,” adding, “We need to restore growth for opportunities to increase, and opportunities need to increase for conflicts among members of our society to ease. The government’s fundamental role is to support our citizens or businesspeople so they can do their part in their respective fields.”
[email protected] Choi Jong-geun Seong Seok-woo Reporter