Overview

• South Korea has raised its semiconductor sector investment from 26 trillion won to 33 trillion won, equivalent to $23.25 billion, to bolster global competitiveness.
• The package includes an additional 3 trillion won in low-interest loans, bringing total loan support to 20 trillion won between 2025 and 2027.
• Funds will target critical infrastructure projects, including underground transmission lines and advanced fabrication plants in Yongin and Pyeongtaek.
• The initiative also emphasizes research and development, next-generation chip technologies, and talent recruitment, both domestically and internationally.
• The move is a direct response to growing uncertainties over U.S. tariff policies, with potential 25% tariffs on South Korean goods threatening key export industries.