South Korea to Review Differential Income Tax Support for Regional AI and Semiconductor Workers

On July 7, South Korea's Deputy Prime Minister Koo Yoon-chul announced plans to review differential income tax support for workers in regional AI and semiconductor clusters, according to an MBC radio interview. The measure aims to supplement inferior working conditions in non-capital regions compared to Seoul through tax incentives, thereby encouraging local investment and talent supply. Koo stated the government will examine deduction provisions to provide greater income tax relief for employees working outside Seoul. The support is intended as temporary assistance until regional infrastructure is adequately developed.
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