The new package, which increases the previously announced $17.8 billion support to 33 trillion won ($23.25 billion), aims to bolster South Korea's semiconductor sector, which is crucial to the nation's economy. The stimulus includes financial aid for businesses, infrastructure investments, and efforts to strengthen the country's position in the global chip market.
The country’s leading chipmakers, Samsung Electronics and SK Hynix, face increasing competition, especially in non-memory processors and contract manufacturing, areas where they lag behind competitors like China and Taiwan. South Korea’s semiconductor exports accounted for a significant portion of its total exports in 2024, with major markets being China and the U.S.
In addition to this, South Korea is taking steps to mitigate the impact of U.S. tariffs, particularly as President Trump prepares to announce new tariffs on imported chips. The government plans to consult with the U.S. to minimize potential negative effects on domestic businesses. Additionally, South Korea has introduced assistance measures to protect other industries, such as the automotive sector, from rising U.S. tariffs.
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