South Korea has increased its semiconductor industry support package to 33 trillion won ($23.25 billion), up from 26 trillion won announced last year, amid rising global competition and tariff concerns under the current U.S. administration.
The government said the move comes in response to calls for greater assistance, as the country’s chipmakers face mounting costs and growing pressure from Chinese rivals.
A joint statement from ministries including the trade ministry confirmed that financial assistance for the chips sector will be boosted to 20 trillion won, up from 17 trillion won.
South Korea, home to leading memory chip producers Samsung Electronics and SK Hynix, seeks to strengthen its position in the global semiconductor market, where it lags behind in areas such as chip design and contract manufacturing.
In 2024, chip exports reached $141.9 billion—21 percent of South Korea’s total exports—with $46.6 billion going to China and $10.7 billion to the U.S.
The announcement follows U.S. President Donald Trump’s comments on upcoming tariffs on imported semiconductors, raising concerns for major exporters. He noted flexibility would be applied to some companies.
South Korea's Finance Minister Choi Sang-mok said Seoul would actively consult with Washington over its Section 232 investigations into semiconductor and biopharmaceutical imports to minimize harm to domestic firms.
Last week, Seoul introduced emergency support for the auto sector in anticipation of similar tariff impacts. The package includes financial aid, tax cuts, and subsidies to stimulate domestic demand, alongside efforts to negotiate with the U.S. and explore new markets.
The government’s latest moves underline South Korea’s intent to protect its key export industries amid evolving global trade tensions.
Source: Reuters
Bd-pratidin English/FNC
