[Edaily Reporter Kim Kyung-eun ] With the government introducing the so-called “Korean Advanced Manufacturing Production Tax Credit (AMPC)” for six strategic industries, forecasts suggest that domestic solar energy companies will benefit.
Jeong Da-som, an analyst at Korea Investment & Securities, stated in a report on the 5th, “Since companies must meet both domestic production and sales requirements, firms that have a domestic production base and strong growth potential in the domestic market are expected to benefit.”
In its 2026 tax reform plan announced on the 3rd, the government included a proposal to establish a domestic production tax credit targeting six key sectors: solar power generation, wind power generation, rechargeable batteries, semiconductors, core materials, and artificial intelligence (AI) robot components. This system provides income tax and corporate tax credits for eligible items produced and sold directly within the country.
The specific eligible items and the scale of the credits are scheduled to be finalized through amendments to the enforcement decree next February. The program will be in effect for approximately 10 years, through 2036. The credit amounts will vary depending on the production region. The government plans to introduce regional coefficients (1–1.5) to provide greater benefits to production facilities outside the Seoul metropolitan area.
Korea Investment & Securities forecasts that the solar power sector will benefit the most among eco-friendly industries.
Researcher Jeong analyzed, “As the government pushes to deploy 100 gigawatts (GW) of renewable energy over the next five years, the solar market is expected to show remarkable growth,” adding, “ HANWHA SOLUTIONS(009830)(Q CELLS) and HD HYUNDAI ENERGY SOLUTIONS CO.,LTD.(322000), which operate production facilities in North Chungcheong Province, will be able to receive tax credit benefits as soon as the system is implemented.” He continued, “UNISON CO., LTD., which operates a factory in Sacheon, South Gyeongsang Province, is also expected to benefit from the production and sale of wind power generation equipment.”
He added, “Since the actual amount of the credit varies depending on regional coefficients, it is necessary to review the detailed criteria for each production facility location in the enforcement decree to be announced next February.”
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