The South Korean government announced on Tuesday (15th) that it will expand the assistance to the semiconductor industry, increasing the total amount to 33 trillion South Korean won (approximately 232.5 billion US dollars), nearly a quarter more than the 26 trillion won announced last year.
According to the South Korean government, this move is in response to the increasing policy uncertainty of the Trump administration in the United States and the escalating pressure from China, amidst domestic calls for increased support.
In a joint statement from various departments including the South Korean Ministry of Trade, Industry, and Energy, the total financial support for semiconductor companies has also been raised, from the original 17 trillion won to 20 trillion won, to help companies absorb the continuously rising costs of research and development and production, and to strengthen their global market share and technological advantage.
Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok stated during a high-level meeting that the South Korean government will actively negotiate with the United States to respond to the potential trade impacts of Section 232 of the U.S. Trade Expansion Act, particularly regarding import restrictions on strategic products such as semiconductors and biotech medical products.
As the world’s fourth-largest economy, South Korea holds a leading edge in the memory chip sector, with internationally renowned companies such as Samsung Electronics and SK Hynix. However, in areas of high value-added fields like chip design and manufacturing, South Korean companies still face some gaps compared to certain international competitors.
According to government statistics, South Korea’s semiconductor exports reached a total of $141.9 billion in 2024, accounting for 21% of the country’s total exports. Among them, exports to China were $46.6 billion and to the United States were $10.7 billion.
Trump announced this past Sunday (April 13) that he will introduce new tariff measures on semiconductor imports within a week, hinting at some businesses potentially receiving “flexible treatment.” These remarks quickly drew global attention from the semiconductor industry, with concerns in the market that trade policies may once again disrupt supply chains.
In addition to the semiconductor industry, the South Korean government initiated an emergency support plan for the automobile industry last week to preempt U.S. tariff pressures. The plan includes fiscal subsidies, tax reductions, expanding domestic demand, and strengthening negotiation mechanisms, while actively expanding diverse export markets.
(This article referenced relevant reports from Reuters)