South Korea announced on April 15, 2025, an increase in its semiconductor support package to ₩33 trillion ($23.25 billion), representing a ₩7 trillion ($4.9 billion) rise from the ₩26 trillion framework unveiled last year. The Finance Ministry stated that the "aggressive fiscal investment plan" was designed to help local firms navigate mounting challenges in the global semiconductor race, as uncertainty has grown following President Donald Trump's announcement of 25% tariffs on April 2, 2025, which were subsequently suspended for 90 days.
As part of the enhanced support package, South Korea will increase its financial assistance programme for the chip industry to ₩20 trillion from the previous ₩17 trillion, and provide funding for infrastructure development, including underground transmission lines at semiconductor clusters currently under construction. The semiconductor industry is vital to South Korea, home to the world's top memory chip makers Samsung Electronics and SK Hynix, with the country exporting semiconductors worth $141.9 billion in 2024, accounting for 21% of total exports, of which $46.6 billion went to China and $10.7 billion to the United States.
Finance Minister Choi Sang-mok stated that this 90-day grace period offers a crucial window to strengthen the competitiveness of South Korean companies amid intensifying global trade tensions, and indicated that the government would actively consult with the US over its Section 232 investigations into semiconductor and biopharmaceutical imports to minimise adverse impacts on domestic companies. The investment is part of a larger ₩12 trillion supplementary budget proposal requiring National Assembly approval, with the government aiming to inject over ₩4 trillion in fiscal spending through 2026 and secure talent for the industry.
Sources:
1.
South Korea increases its semiconductor support package to 33 trillion won ($23.25 billion) to bolster its chip industry against US tariff concerns and rising Chinese competition.
2.
Agence France-Presse
3.
台北時報
