The South Korean government aims to enhance the overall competitiveness of its semiconductor ecosystem by building advanced chip fabrication plants and launching large-scale R&D projects.

Finance Minister Choi Sang-mok emphasized the urgency of strengthening the semiconductor industry in light of potential U.S. tariffs on imports.

U.S. President Donald Trump has indicated that tariffs on semiconductor imports will be announced soon, following a temporary suspension of their implementation.

The uncertainty generated by U.S. tariff threats has prompted South Korean companies to seek increased government assistance.

The U.S. government has delayed reciprocal tariffs for 90 days, raising concerns about the potential impact on semiconductor and pharmaceutical imports.

The new investment package will also focus on infrastructure development and securing talent for the semiconductor industry.

To address these challenges, South Korea plans to send a delegation to the U.S. to discuss tariff hikes and protect its export-driven economy.

In a strategic move to bolster its semiconductor industry amid rising U.S. tariff threats, South Korea is expanding its financial support to 33 trillion won, approximately 23 billion US dollars.

The government plans to offer low-cost loans, subsidies, and incentives aimed at advancing chip development and high-tech manufacturing equipment.

Officials have expressed concerns that South Korean companies are falling behind competitors in Taiwan and China in the production of advanced chips for artificial intelligence and other high-tech applications.

Part of the funding includes $2.1 billion in low-interest loans specifically designated for semiconductor companies.

Additionally, the Ministry of Trade, Industry and Energy is considering measures such as tariff response vouchers to mitigate the impact of U.S. tariffs on local businesses.