Increased Support to Counter Global Pressures
SEOUL, April 15 (Reuters) – South Korea raised its support package for the semiconductor industry to 33 trillion won ($23.25 billion). That’s up from 26 trillion won announced last year — a 25% increase.
The move comes amid uncertainty over U.S. trade policy and growing competition from China, the government said in a joint statement with multiple ministries.
Financial Aid for Chipmakers Expanded
As part of the plan, the government will raise its financial assistance programme for the chip sector to 20 trillion won, up from 17 trillion won.
Officials say the support will help companies manage higher global costs and strengthen their competitiveness.
South Korea’s Global Role in Chips
South Korea is home to Samsung Electronics and SK Hynix, two of the world’s top memory chip producers. But the country lags in other areas like chip design and contract manufacturing.
In 2024, South Korea exported $141.9 billion worth of semiconductors, making up 21% of its total exports. Major markets included China ($46.6 billion) and the U.S. ($10.7 billion).
U.S. Tariff Moves Fuel Concerns
On Sunday, President Donald Trump said he would soon announce a new tariff rate on imported semiconductors. He added there may be flexibility for some firms.
In response, Finance Minister Choi Sang-mok said South Korea would consult closely with the U.S. about Section 232 investigations. These reviews cover semiconductors and biopharmaceutical imports.
More Sectors Get Government Help
Last week, South Korea also unveiled emergency support for its auto industry. Measures included financial aid, tax cuts, and subsidies to offset U.S. tariffs.
The government said it would continue negotiations with Washington and work to open new markets for its exports.
