The South Korean government is seeking to expand tax incentives on strategic industries, including semiconductors, in response to technological hegemony and heightened supply chain competition in the global market.

Finance minister Choo Kyung-ho reported on the tax support plan during Tuesday's Cabinet meeting.

The finance ministry said the incentives are aimed at reviving corporate investment sentiment and securing global competitiveness of strategic industries.

Under the plan, the government will push to further raise the tax credit rate for conglomerates' facility investment in the semiconductor, vaccine and secondary battery industries to 15 percent  from the current eight percent.

The tax credit rate for small- to mid-sized enterprises(SMEs) will be raised from 16 to 25 percent.

The government will also provide an additional ten-percent tax credit on the on-year increase in investment.