South Korea’s Ministry of Trade, Industry and Energy said on Thursday that it plans to provide more tax incentives for domestic chip makers and cancel more supervision, in order to keep pace with South Korea’s vision to become a global power storage and system semiconductor power.

According to Yonhap News Agency, South Korea is planning to pass legal amendments to provide incentives for major R&D projects and facility investment in the chip industry.

This is also a follow-up measure to the blueprint of the "K-Semiconductor Industry Belt" announced by South Korea, which is to expand tax incentives and relax supervision. It is reported that this proposed bill will be submitted to Parliament before September.

In May of this year, the Korean government announced a strategic plan to achieve the goal of a comprehensive semiconductor power, and by 2030, the world's largest semiconductor industry supply chain-the "K-Semiconductor Industry Belt" will be completed.

According to the plan, the South Korean government will provide related chip manufacturing companies with a package of support such as tax reduction and exemption, expansion of finance and infrastructure. It is estimated that Samsung Electronics, SK Hynix and other companies will invest 510 trillion won (about 3 trillion yuan) in the next 10 years. South Korea plans to double its chip exports from US$99.2 billion in 2020 to US$200 billion by 2030.