Presidential candidate Lee Jae-myung has pledged to introduce major tax incentives aimed at boosting South Korea's semiconductor industry if elected in the June 3 election.

In a statement posted on Facebook on Monday, the Democratic Party candidate proposed a production tax credit of up to 10 percent for semiconductors manufactured and sold domestically. Lee emphasized that expanding domestic chip production is essential to enhancing South Korea’s economic security and technological competitiveness.

Lee, who currently leads in opinion polls, outlined a policy approach that reflects broader international efforts to secure and expand national semiconductor industries amid growing supply chain concerns. His announcement comes as major economies worldwide intensify efforts to strengthen their chip production capabilities.

Meanwhile, in the United States, President Donald Trump recently signed an executive order establishing a new entity to oversee the CHIPS Act program, aimed at accelerating corporate investment in American semiconductor manufacturing. Trump has repeatedly criticized the CHIPS Act, originally signed into law by former President Joe Biden in August 2022, arguing that stronger measures are needed to ensure U.S. leadership in the sector.

As global competition over semiconductor manufacturing increases, Lee’s proposal is seen as a strategic move to maintain South Korea’s position as a key player in the industry. With major firms like Samsung Electronics and SK Hynix at the heart of the global supply chain, strengthening domestic production is expected to be a major focus leading up to the election.

Technology policy and economic resilience are likely to remain central themes as South Korean voters head to the polls.