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| ▲ President Yoon Suk Yeol speaks during an interagency meeting on economic issues at the presidential office on May 23, 2024. (Pool photo) (Yonhap) |
S Korea-chip industry
S. Korea unveils 26 tln-won support package for chip industry
By Kim Eun-jung
SEOUL, May 23 (Yonhap) -- President Yoon Suk Yeol said Thursday South Korea will introduce a chip industry support package worth 26 trillion won (US$19 billion) to bolster the critical industry amid intensifying global competition.
The comprehensive plan was unveiled during an interagency meeting on economic issues, involving related ministries and financial regulators.
The package includes financial programs, research and development (R&D) initiatives and infrastructure support for chip manufacturers, material suppliers and fabless companies specializing in chip design.
Central to this support package is the creation of a financial support program worth 17 trillion won dedicated to infrastructure investment at the state-run Korea Development Bank.
The government also plans to extend tax breaks that are set to expire at the end of the year to facilitate large-scale investment as a semiconductor mega cluster project is currently under way in Gyeonggi Province.
A 1 trillion-won chip industry fund will be created to assist fabless and chip material companies and R&D infrastructure will be built for small and medium-sized enterprises (SMEs).
Yoon said the support package is designed to benefit the entire semiconductor supply chain, with a particular focus on SMEs.
"If companies expand investment and earn more profits through tax support, the public will benefit from more quality jobs, thereby revitalizing the economy and increasing tax revenue," Yoon said during the meeting held at the presidential office.
To bolster the country's position in the semiconductor industry, Yoon also called for the related ministries to come up with measures to support system semiconductors and foundry businesses to help them close the gap with global leaders.
Samsung Electronics Co. and SK hynix Inc. lead the world in memory chip production, but their market share in the foundry business, where companies manufacture chips designed by others, lags behind Taiwan's TSMC, the world's largest contract chip maker.
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