Lee Jae-myung, the Democratic Party of Korea presidential candidate, said on the 31st, "I will introduce a domestic production promotion tax system to support active domestic investment and production in the secondary battery industry as a national strategic industry."
On that day, the candidate announced a battery pledge on Facebook, stating, "Batteries are the key driving force of future industries."
The pledge consists of major points: ▲ introduction of a domestic production promotion tax system ▲ strengthening research and development ▲ creating a "battery triangular belt" in the Chungcheong, Yeongnam, and Honam regions ▲ distributing energy storage systems (ESS) linked with energy highways ▲ fostering the used battery industry.
In particular, the introduction of a domestic production promotion tax system is a matter that the Democratic Party is actively pursuing. Democratic Party lawmakers have proposed an amendment to the Special Taxation Limitation Law that provides a 15-20% corporate tax deduction only for products produced and sold domestically in strategic industries such as semiconductors, batteries, and pharmaceuticals.
The candidate mentioned, "To ensure that the battery industry can create numerous quality jobs domestically, I will build a stable industrial ecosystem," adding, "I will actively review the application of carryover deductions and adjustments to standards to ensure that tax benefits related to promoting domestic production and investment as a national strategic industry are sufficiently applied."
Additionally, the candidate stated regarding "solid-state batteries," "It is an area of intense competition between nations as a core next-generation technology." He added, "The state will actively support from the demonstration research of solid-state batteries to commercialization," stating, "Research and development of next-generation battery technologies such as mid-nickel and sodium batteries will also be expanded together."
Regarding the "battery triangular belt," he said, "The Chungcheong region will focus on 'battery manufacturing,' the Yeongnam region on 'core materials and future demand response,' and the Honam region on 'core minerals and cathode material hubs.'"
He continued, "Through the distribution of energy storage systems (ESS), we will build a decentralized power grid and strategically foster the 'used battery' industry."
The candidate mentioned, "Batteries are a promising industry in themselves and the key equipment that drives the K-economy," saying, "We will recharge our economy with ultra-competitive battery technology and lay the foundation for the well-being of our country."