SEOUL: South Korea on Tuesday (Apr 15) announced plans to invest an additional US$4.9 billion in the country’s semiconductor industry, citing “growing uncertainty” over US tariffs.
“An aggressive fiscal investment plan has been devised to help local firms navigate mounting challenges in the global semiconductor race,” the finance ministry said in a press release, adding the country’s chip support package would be increased by US$4.9 billion.
South Korea is a major exporter to the United States and its powerhouse semiconductor and auto industries would suffer greatly under President Donald Trump’s looming 25 per cent tariffs.
South Korea is home to the world’s largest memory chip maker Samsung, and largest memory chip supplier SK Hynix.
South Korea’s finance ministry said “growing uncertainty” following rounds of US tariff threats had left the powerful industry clamouring for government support.
“To foster a dynamic, private sector-led ecosystem for semiconductor innovation and growth, the government will increase its investment in the sector from 26 trillion won (US$18.2 billion) to 33 trillion won (US$23.1 billion),” said the ministry.
On his so-called Apr 2 “Liberation Day,” Trump announced a slew of tariffs on trading partners across the world, including a 25 per cent hit on South Korean goods, before backtracking and suspending their implementation for 90 days.
Even so, “duties targeting specific sectors such as semiconductors and pharmaceuticals, remain on the horizon”, finance minister Choi Sang-mok said during a meeting.
“This grace period offers a crucial window to strengthen the competitiveness of South Korean companies amid intensifying global trade tensions,” he added.
“The government plans to expand support for the semiconductor industry, allocating 33 trillion won (US$23.1 billion), with over 4 trillion won in fiscal spending set to be injected through 2026,” he said.
