South Korea is ramping up its financial support for the semiconductor industry, boosting the package to 33 trillion won ($23 billion) to counter uncertainties arising from the Trump administration’s tariff hikes. This 26% increase from last year’s allocation will focus on providing low-cost loans, subsidies, and incentives to drive investment in semiconductor technology. The government’s strategy includes expanding financial aid for research and development and advanced chip manufacturing.
To strengthen industrial infrastructure, South Korea plans to cover a significant portion of the costs for underground power systems in semiconductor clusters in Yongin and Pyeongtaek, home to Samsung and SK Hynix. With concerns mounting over competition from Taiwan and China in high-tech chip production, South Korea aims to maintain its chip industry’s global competitiveness.
Finance Minister Choi Sang-mok highlighted the need to bolster company competitiveness amid potential tariffs on sectors like semiconductors. Additionally, South Korea intends to send a delegation to the U.S. to address tariff concerns and protect its export-driven economy.
In response to increased U.S. tariffs, an emergency funding program of 3 trillion won ($2 billion) was launched to support the automobile industry. This initiative includes expanded financing from state-run lenders and a new program backed by Hyundai, Kia, and financial institutions to assist struggling carmakers and parts manufacturers.
