South Korean lawmaker Kim So-hee proposes semiconductor-level tax incentives for SMRs

People Power Party lawmaker Kim So-hee introduced an amendment to the Restriction of Special Taxation Act that would raise tax credits for research, workforce development and facility investment in small‑modular reactors (SMRs) to the level currently granted to the semiconductor sector. She argued that exploding power demand from AI data centres and new semiconductor industrial parks cannot be met by large traditional power plants or long‑distance transmission lines, whereas SMRs can be built near the load and supply continuous, carbon‑free electricity.

The bill aims to make South Korea more competitive in the global SMR market, noting that the United States, China and Europe are already providing substantial government support for SMR development. South Korea’s own SMR special law took effect in September, but Kim said stronger fiscal incentives are needed to attract large‑scale private investment and secure the country’s future energy supply for AI and semiconductor industries.