South Korea Announces $7.3 Billion Support Package for Semiconductor Industry

South Korea is preparing a support package valued at over 10 trillion won ($7.30 billion) for investments and research in the semiconductor sector to secure a competitive edge in the global semiconductor industry “war.”

According to Finance Minister Choi Sang-mok, the government will soon detail this initiative. It aims to bolster the semiconductor supply chain, including chip materials, equipment makers, and fabless companies.

During a meeting with domestic chip equipment executives, Finance Minister Choi Sang-mok detailed the potential benefits of South Korea’s new initiative in the semiconductor sector. According to the finance ministry, these benefits include providing policy loans and establishing a new fund, which both state and private financial institutions will support.

South Korea is developing a significant high-tech project in Yongin, located just south of Seoul. This initiative involves creating a mega chip cluster, which is being touted as the largest of its kind in the world.

President Yoon Suk Yeol has committed significant resources and tax incentives to support investments in the semiconductor sector, underscoring his dedication to advancing South Korea’s standing in the global semiconductor industry.