At over 33 trillion won ($23.25 billion) the new package of support represents a significant increase on the 26 trillion won that was unveiled last year and is seen as a response to the uncertainty that’s been created by the US administration and its ‘changing’ tariffs policy as well as to increased Chinese competition.
The South Korean government also said that it would be looking to ramp up financial assistance programmes for the chips industry increasing support from 17 to 20 trillion won in a mov e that’s intended to help companies cope with heavier costs as they compete globally.
South Korea is home to several leading electronics companies including Samsung Electronics and SK Hynix, however both have fallen behind some of their rivals in recent years especially in terms of chip design and contract chip manufacturing.
South Korea's exports of semiconductors were worth $141.9 billion in 2024, accounting for 21% of the country's total, according to government data. Shipments to China and the United States stood at $46.6 billion and $10.7 billion, respectively.
In a highly volatile environment, the South Korean government is looking to support the sector especially as President Trump is planning to unveil new tariffs on imported semiconductors and has announced an investigation into semiconductor imports.
