S. Korean government to strengthen “semiconductor ecosystem” with over 20tn won funds

The South Korean government is apparently proposing to invest more than 20 trillion won (about $14.63 billion) in policy funds to promote semiconductor-related sectors like materials, components, and equipment, as well as fabless (design) firms. This comprises almost 15 trillion won (about $10.97 billion) in low-interest loans, a 1 trillion won (about $731.25 million) fund, and money to build infrastructure for semiconductor clusters. This doubles the scope of the “semiconductor financial support program,” which Deputy Prime Minister Choi Sang-mok called the “10 trillion won+alpha” plan on May. 10. The government’s assistance program includes measures to improve infrastructure, such as water and electricity supply, as well as R&D support in the semiconductor cluster in Yongin, Gyeonggi-do, where Samsung Electronics and SK Hynix intend to expand semiconductor facilities next year. This assistance will come not just from policy fund loans, but also from government money and public institution funds.

Source: TRADE FINANCE