South Korea Boosts Chip Industry Support in Face of US Trade Threats
TEHRAN (Tasnim) – South Korea raised its support package for the domestic semiconductor industry to 33 trillion won ($23.25 billion) on Tuesday, aiming to shield key sectors from rising global competition and policy uncertainty in the United States.
The increased package represents a 27% jump from a previously announced 26 trillion won plan in 2023, the government said in a statement.
The move comes as officials face growing pressure to strengthen industry backing amid escalating challenges from Chinese chipmakers and ambiguity over US trade policies.
According to a joint statement from multiple ministries, including the trade ministry, the government will expand financial assistance for the chip sector to 20 trillion won, up from 17 trillion won.
“This decision is intended to support firms in coping with mounting costs in the face of intensifying global competition,” the statement said.
South Korea, Asia’s fourth-largest economy, is home to leading memory chip producers Samsung Electronics (005930.KS) and SK Hynix (000660.KS), although both lag some competitors in chip design and contract manufacturing.
In 2024, semiconductor exports from South Korea totaled $141.9 billion, accounting for 21% of its total exports, government data showed.
Exports to China reached $46.6 billion, while shipments to the US amounted to $10.7 billion.
US President Donald Trump said on Sunday that he would reveal new tariff rates on imported semiconductors within the next week, adding that there would be “flexibility” for certain companies.
Following Tuesday’s announcement, Finance Minister Choi Sang-mok said Seoul would engage closely with Washington regarding its Section 232 investigations into imports of semiconductors and biopharmaceuticals to mitigate any negative effects on South Korean firms.
Last week, South Korea introduced emergency aid for its automotive sector to cushion the impact of potential US tariffs, after years of rising car exports to the US
Those measures include financial assistance, tax relief, and subsidies to stimulate local demand, alongside a commitment to continue negotiations with Washington and explore new market opportunities.
