FX.co ★ South Korea Boosts Chip Support Package

South Korea announced an enhancement of its support package for the semiconductor industry to KRW 33 trillion, an increase from the KRW 26 trillion disclosed last year. This strategic decision responds to the intensifying competition from China and the prevailing policy uncertainties under the current U.S. administration. As part of this initiative, financial assistance specifically allocated to the semiconductor sector will rise to KRW 20 trillion, up from KRW 17 trillion previously. The primary objective of this support is to alleviate the pressures of global competition faced by South Korean companies. Finance Minister Choi Sang-mok emphasized that South Korea intends to "actively consult with the U.S." regarding the Section 232 investigations into semiconductor and biopharmaceutical imports, aiming to mitigate any adverse impacts on local industries. This announcement comes on the heels of urgent support measures introduced last week for the automotive sector, which are designed to address the repercussions of U.S. tariffs on South Korean car exports.