On Tuesday, South Korea declared that its aid package for the nation’s crucial semiconductor sector had increased to 33 trillion won ($23.25 billion), up around 25% from the 26 trillion won package that was revealed the previous year.
Enhanced Financial Support
According to a joint announcement from many ministries, including the commerce ministry, Seoul would also increase its financial aid scheme for the semiconductor industry from 17 trillion won to 20 trillion won. According to the video, South Korea’s move to increase investment in its vital chips industry is intended to assist businesses in managing higher expenses as they compete on a worldwide scale.
Strategic Infrastructure Investments
The world’s leading memory chip manufacturers, Samsung Electronics (005930.KS) and SK Hynix (000660.KS), are based in Asia’s fourth-greatest economy, although they have lagged behind some competitors in areas like contract production of chips and chip design. According to government figures, South Korea’s semiconductor exports totaled $141.9 billion in 2024, or 21% of the nation’s total. About $46.6 billion and $10.7 billion, respectively, were shipped to China and the US. Further, Trump announced the implementation of semiconductor chip Tariffs soon.
Industrial implications based on this news:
South Korea’s dedication to preserving its competitive advantage in the global technology business is demonstrated by this expanded support package. The nation wants to improve its standing against competitors like China and Taiwan, particularly in sectors like non-memory processors and contract manufacturing, by concentrating on facilities, financial aid, and recruitment of talent.
In addition to saying that there will be flexibility with certain semiconductor businesses, U.S. President Donald Trump announced on Sunday that he would be revealing the duty rate on imported chips over the course of the next week.
In order to minimize any negative effects on domestic businesses, Finance Minister Choi Sang-mok stated in a meeting on Tuesday following the announcement that the government would aggressively consult with the United States over its Section 232 investigations into imports of semiconductors and biopharmaceuticals.
In an effort to lessen the impact of US tariffs on the auto industry, which has witnessed years of steadily increasing exports to the US, South Korea approved extraordinary assistance measures for the automotive industry last week.
