Daily Management Review

South Korea to offer $19 bln support to semiconductor industry


South Korean President Yoon Suk Yeol launched a stimulus package worth 26 trillion won, or more than $19 billion in an effort to boost the nation's semiconductor sector.

The Korea Economic Daily writes that the action is intended to assist chipmakers, such as Samsung Electronics Co. and SK Hynix Inc., in light of the rising need for sophisticated semiconductors for artificial intelligence and other computing applications. The authorities of the nation are concerned about falling behind in the highly competitive global semiconductor sector, particularly in areas like chip design and contract production.

The plan includes increased tax advantages and 17 trillion won in financial aid through the Korea Development Bank, a state-run organization, to stimulate investment in specific areas.

"As everyone knows, there is a full-fledged international conflict in the semiconductor industry. "Who can develop advanced chips first will determine who wins or loses," the president declared during a meeting with senior government officials.

source: kedglobal.com