South Korea announced an increase in its support package for the vital semiconductor industry of the country to 33 billion wones (23,250 million dollars), approximately a quarter more than the package of 26 billion wones revealed last year.
The measures arise in response to the orders that the government expands support at a time of growing political uncertainty under the current US administration and a growing competence of Chinese rivals, the government said in a statement.
Seoul will also increase a financial assistance program for the chips industry to 20 billion wones, compared to the 17 billion previous wones, according to the joint declaration of several ministries, including the Ministry of Commerce.
South Korea’s decision to inject more money in its key chips sector aims to help companies face higher costs as they compete globally, he said.
The fourth largest economy in Asia houses the main memory chips manufacturer in the world, Samsung Electronics and SK Hynix, although they have been left behind some rivals in areas such as chip design and the manufacture of chips per contract.
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In 2024, exports of South Korea semiconductors amounted to 141.9 billion dollars, representing 21% of the country’s total, according to government data.
Shipments to China and the United States amounted to 46.6 billion dollars and 10.7 billion dollars, respectively.
President Donald Trump said Sunday that he will announce the tariff rate on the semiconductors imported during the next week and added that there will be flexibility with some companies in the sector.
Last week, South Korea announced emergency support measures for its automotive sector, seeking to reduce the impact of US tariffs on a sector that has seen years of exports in marked increase to the United States.
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Measures include financial support for the automotive industry, as well as tax cuts and subsidies to boost domestic demand, while the government also promised efforts to negotiate with the United States and help expand markets.
With Reuters information
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