According to Yonhap News,

(SEOUL=Yonhap News) The Korean government has decided to offer STATS ChipPAC Korea Ltd., a Singaporean semiconductor manufacturer that will build a large-scale plant in the Incheon Free Economic Zone (FEZ), up to seven years of tax reduction. It voted on this at the 71st Free Economic Zones Committee on September 29.

STATS ChipPAC Korea Ltd., a semiconductor back-end process manufacturer wholly invested by its parent company, has been using a rented plant in Gyeonggi Province from 1998. The company will establish a large-scale plant in the Incheon FEZ by the end of November.

STATS ChipPAC Korea Ltd. has invested USD 100 million in Korea. The Restriction of Special Taxation Act allows foreign-invested companies to benefit from reductions of taxes including corporate tax, acquisition tax and property tax if they have invested more than USD 3,000 in building plants.

STATS ChipPAC Korea Ltd. plans to invest an additional KRW 1.4 trillion in Korea by 2020. The goal of the company is to establish not only a manufacturing plant, but also a global research and development center in Korea.

In addition to their 2,500 workers, STATS ChipPAC Korea Ltd. will create 500 new jobs in 2015 and 4,000 jobs by 2020.

"When STATS ChipPAC Korea Ltd. localizes its semiconductor back-end process-related equipment through joint technology development with domestic companies, the sales of domestic companies will increase and an import substitution effect will occur," said an official at the Ministry of Trade, Industry & Energy.

prayerahn@yna.co.kr

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