South Korean President Yoon Suk-yeol announced a support plan totaling up to $19 billion to bolster the semiconductor industry in South Korea on Thursday, May 23.
According to Yonhap News Agency, the South Korean Presidential Office stated on the 23rd that President Yoon Suk-yeol discussed a comprehensive support plan for the chip industry at the second economic focus issue inspection meeting, with the plan amounting to 26 trillion Korean won (approximately $19 billion USD, 138.4 billion Chinese yuan).
Yoon mentioned that the primary measure will be the establishment of a semiconductor financial support program totaling 17 trillion Korean won to facilitate large-scale equipment investments by chip companies. Additionally, the government decided to set up a “Semiconductor Ecosystem Fund” of 1 trillion Korean won to support promising chip design companies, as well as material, component, and equipment manufacturers, while extending the semiconductor investment tax relief support set to expire this year.
Yoon promised that the government will swiftly develop the necessary infrastructure such as electricity, water, and roads for the construction of a large-scale semiconductor cluster investment, emphasizing that 70% of the benefits of this comprehensive support project will be directed towards small and medium-sized enterprises. Yoon also urged the Ministry of Trade, Industry and Energy to formulate more groundbreaking strategies to further enhance the competitiveness of the system semiconductor industry.
South Korea is home to global leading memory chip manufacturers Samsung Electronics Co. and SK Hynix Inc. Currently, South Korean companies like Samsung Electronics and SK Hynix are still operating in China, with China being South Korea’s largest trading partner.
As the chip war between the United States and China intensifies, South Korean and American officials are deeply discussing semiconductor equipment exports to China. The U.S. has requested South Korea to impose similar restrictions on semiconductor technology exports to China as those already implemented by Washington.