South Korea announces over $23 billion for chip sector as Trump tariffs on semiconductor imports loom
The 33 billion won figure was about a quarter more than the 26 trillion committed last year.
This comes after U.S. president Donald Trump reportedly said he would be announcing the tariff rate on imported semiconductors soon, after exempting them from his steep "reciprocal" tariffs last Friday.
In a social media post Monday, Trump vowed to investigate the "whole electronics supply chain" on national security grounds.
The U.S. Department of Commerce also released a notice saying it will initiate an investigation "to determine the effects on national security of imports of semiconductors, semiconductor manufacturing equipment, and their derivative products."
South Korea's funding support was about a quarter more than the 26 trillion committed last year, according to a press release from the finance ministry.
As part of the measures, the government will subsidize the construction of underground power transmission lines to semiconductor clusters, as well as increase the funding ratio for infrastructure in advanced industrial complexes to 50% from 30%.
A total of 20 trillion won of low-interest loans to semiconductor companies will be offered between 2025 and 2027, up from the current 17 trillion won.