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South Korea Expands Semiconductor Support Package to $23 Billion

The government increases funding by 26% and adds $4.9 billion to counter US tariff threats and strengthen global competitiveness.

South Korean acting President Choi Sang-mok speaks during the 106th Independence Movement Day ceremony at Soongeui Women's University on March 01, 2025 in Seoul, South Korea.  Chung Sung-Jun/Pool via REUTERS/File Photo
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South Korean Trade Minister Cheong In-kyo speaks to reporters as he arrived at Incheon International Airport, just west of Seoul, on April 11, 2025, following a trip to Washington for tariff negotiations. (Yonhap)

Overview

  • South Korea has raised its semiconductor support package from 26 trillion won to 33 trillion won, equivalent to approximately $23 billion.
  • An additional $4.9 billion will be invested to bolster the industry, with funds allocated through 2026.
  • The government has increased low-interest loans for semiconductor companies from 17 trillion won to 20 trillion won to ease financial pressures.
  • Infrastructure investments include building underground power transmission lines at semiconductor clusters in Yongin and Pyeongtaek.
  • The measures aim to address uncertainties from US trade policies, including potential 25% tariffs on semiconductor imports.