Overview

• The South Korean government has finalized an expanded semiconductor support package, increasing investment from 26 trillion won to 33 trillion won.
• Key funds will be allocated to building essential infrastructure, including underground transmission lines in Yongin and Pyeongtaek semiconductor clusters.
• An additional 3 trillion won will boost low-interest loans, raising total financial aid for the industry to 20 trillion won between 2025 and 2027.
• The package includes initiatives to enhance the semiconductor ecosystem, such as advanced chip fabrication plants and next-generation R&D projects.
• The move aims to counter rising global competition, U.S. tariff uncertainties, and challenges from Chinese semiconductor rivals.