Seoul, South Korea – South Korea said Tuesday that it will expand its financial support package for its crucial semiconductor industry to 33 billion wones (around $ 23 billion) in part of the efforts to address the uncertainties raised by the Trump administration tariffs.
The package represents approximately an increase of 26% of the 26 billion wones (approximately $ 18 billion) announced last year. Officials are focusing on providing low -cost loans, subsidies and other financial incentives to stimulate investment in the semiconductor sector. The Government aims to facilitate the development of advanced chips by expanding financial assistance for research and development activities and high -tech manufacturing equipment.
Officials also plan semiconductor groups In the cities of Yongin and Pyeongtaek, which have attracted investments of Samsung and Sk Hynix chips.
The Government said in a statement that the plans aim to address the uncertainties derived from the commercial policies of the United States and maintain the competitiveness of the South Korean chips industry. There is a growing concern that South Korean companies are staying behind Rivals in Taiwan and other countries in the production of high -tech chips for artificial intelligence and advanced applications, while Chinese competitors are quickly closing the gap in memory chips.
“The United States government has postponed its plans for reciprocal tariffs for 90 days. There is an anticipation that specific product tariffs will be announced for sectors such as semiconductors or pharmaceutical products,” said Finance Minister of South Korea, Choi Sang-Mok at a policy meeting on Tuesday. “This is a valuable time to strengthen the competitiveness of our companies against a global commercial war.”
South Korea plans to send a delegation to the United States soon to address recent tariff increases and other commercial concerns, part of the continuous efforts of Seoul to protect the economy promoted by the export of the country from negative impacts.
The government also launched an emergency financing program for 3 billion Wones ($ 2 billion) last week to help its automobile industry in front of the impact of the increase in rates imposed by the United States. This package includes expanded low -cost financing of state lenders, as well as a new financing program backed by Hyundai and Kia car giants, together with financial institutions, aimed at supporting car manufacturers and car manufacturers with difficulties.
