Seoul seeks exceptional treatment in White House examination of chip tariff policies
Minister Duk-geun's Visit and South Korea's Semiconductor Push
On a crisp April day in Seoul, Minister of Trade, Industry, and Energy, Ahn Duk-geun, made his way to the National Assembly. The destination? A meeting with the Trade, Industry, Energy, SMEs, and Startups Committee [NEWS1]. But what's the buzz all about?
The semiconductor sector has been at the forefront of South Korea's economic strategy, especially in the face of international challenges. Let's dive into the current policies and recent developments driving this push.
Economic Support and Funding
In 2025, South Korea rolled out a KRW 33 trillion (approximately $23.25 billion) support package for its semiconductor industry, increasing low-interest loans to semiconductor firms from KRW 17 trillion to KRW 20 trillion between 2025 and 2027 [1][2]. Earlier, in 2024, South Korea pledged an additional $19 billion in funding, chiefly focusing on chip design and contract manufacturing [1].
Talent Development and Research
The government is fostering talent through training programs, research initiatives, and global joint research partnerships to attract foreign talent [1][2]. Additionally, there's a nationwide expansion of the semiconductor academy designed to boost domestic capabilities [1].
Responding to Global Challenges
Amidst U.S. tariff investigations, South Korea has requested "special consideration" regarding chip exports [3][4]. In response to potential U.S. tariffs, South Korea is considering establishing a domestic CHIPS Act to lessen risks and bolster competitiveness [5].
Industry Investments
Major players, such as Samsung and SK Hynix, are planning substantial investments to augment chip production capacity within the nation's mega chip production cluster [1]. The government continues to back these global leaders in the semiconductor market [2][5].
South Korea's commitment to its semiconductor sector is undeniable, as it steadily invests resources and strategic efforts to secure its position amidst turbulent global markets. The vibrant future of the semiconductor industry, intertwined with advanced technology and economic prowess, paints an intriguing picture for the days ahead.
- Minister Ahn Duk-geun met with the Trade, Industry, Energy, SMEs, and Startups Committee [NEWS1] in Seoul to discuss South Korea's semiconductor industry strategy.
- The South Korean government has increased funding for the semiconductor industry, allocating KRW 33 trillion by 2027, and focusing on chip design and contract manufacturing.
- Talent development and research initiatives are crucial for South Korea's semiconductor sector, with training programs, research collaborations, and a nationwide expansion of the semiconductor academy underway.
- Amidst potential U.S. tariffs on chip exports, South Korea is considering establishing a domestic CHIPS Act to reduce risks and enhance competitiveness in the global semiconductor market.
- Major South Korean companies like Samsung and SK Hynix are planning significant investments to enhance chip production capacity within the country's mega chip production cluster.
- The South Korean government is actively supporting global leaders in the semiconductor market by providing low-interest loans and other strategic resources.
- The semiconductor industry's future in South Korea appears promising, with the country showing a commitment to advanced technology and economic growth amidst global challenges. This development calls for close attention in both the business and general news sectors, as well as in politics and policy-and-legislation discussions.
