Seoul's mega support programme for its semiconductor industry encompasses financial, infrastructure, research and development, as well as support for small and medium-sized companies.South Korean President Yoon Suk Yeol attends the virtual AI Seoul Summit hosted jointly by South Korea and Britain, in Seoul on May 21, 2024. / Photo: South Korean Presidential Office/afp
"We have created a comprehensive support programme for the semiconductor industry worth 26 trillion Korean won, which encompasses financial, infrastructure, research and development, as well as support for small and medium-sized companies," he said, on Thursday, according to a statement from his office.Yoon also said Seoul would extend tax benefits for chip investments, in hopes of boosting employment and attracting more talent to the industry.
"As companies invest enormous amounts of money in facilities such as new factories and line expansions, liquidity problems arise," he said. Earlier this month, Seoul said it would set up an aid package worth more than $7 billion to support its chip industry, as part of its drive to boost the semiconductor sector, which is critical to Asia's fourth-largest economy.
"This announcement is seen as stemming from the necessity to carefully cultivate industries where South Korea has a clear and strategic advantage," he said.