Yulchon represents STATS ChipPAC Korea and obtains the Korean government's approval on seven-year tax reduction applicable to foreign invested companies.
2014.09.30.
Yulchon's Tax Group successfully represented STATS ChipPAC group ("ChipPAC") and STATS ChipPAC Korea Ltd. ("ChipPAC Korea"), the world's fourth leading semiconductor back-end process manufacturer, by obtaining on September 30, 2014 the Korean government's approval on seven-year tax reduction applicable to foreign invested companies under the Restriction of Special Taxation Act, in connection with relocation of ChipPAC Korea's office and plant from Icheon to the Incheon Free Economic Zone. Under the Restriction of Special Taxation Act, a five-year tax reduction is granted to foreign invested companies satisfying a certain business scale threshold specific to the Incheon Free Economic Zone, and a seven-year tax reduction is granted at the discretion of the Free Economic Zones Committee under the Ministry of Trade, Industry & Energy.
The Tax Group successfully argued that a precedent under which the seven-year tax reduction was granted only to only newly established companies should not apply to ChipPAC Korea, an existing company planning relocation.
The success of this project was mainly due to the Tax Group's intimate consultations with ChipPAC Korea based on a correct understanding of ChipPAC Korea's business and its continuous communications with the Ministry of Trade, Industry & Energy addressing the Ministry's concerns.
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