[2026-08-08] Korea Launches Domestic Production Tax Credit for 6 Strategic Industries Through 2036 — Echoing US IRA and Japan’s Production Incentives
Korea’s 2026 tax reform adds a production-linked tax credit for solar, wind, batteries, chips, core materials and AI robot parts.
The scheme shifts support from investment to actual output, running through 2036 with a regional multiplier and a tapering final phase.
It closely tracks the US IRA’s 45X credit and Japan’s Strategic Field Production Promotion Tax System.
We break down what it means for industry competitiveness and consumers.