President Yoon “Comprehensive support for the semiconductor industry of 26 trillion won”… No direct subsidies to be paid

President Yoon Seok-yeol presides over the ‘Second Economic Issue Checkup Meeting’ on the 23rd
Directs the establishment of a groundbreaking plan to strengthen system semiconductors,

[Image Source=Yonhap News],
,
, ‘President Yoon Seok-yeol presided over the ‘Second Economic Issue Checkup Meeting’ on the 23rd at the presidential office in Yongsan, Seoul, regarding the semiconductor industry and announced the creation of a comprehensive support program for the semiconductor industry totaling 26 trillion won, covering finance, infrastructure, research and development (R&D), and support for small and medium-sized enterprises. ‘,
,
, ‘President Yoon stated, “As everyone knows, semiconductors are a field where a national all-out effort is unfolding, and the competition for who can first create advanced semiconductors with high information processing capabilities will determine success or failure.” He emphasized, “To support semiconductors that do not fall behind competing countries, the country must firmly support them.” The meeting on this day was prepared to discuss the comprehensive support program for the semiconductor industry, current issues related to semiconductor mega clusters, and measures to promote the system semiconductor industry.’,
,
, First, 17 trillion won will be allocated to establish a ‘semiconductor finance support program’ to make large-scale equipment investments. President Yoon said, “, ‘Industry Bank will establish a semiconductor finance support program totaling 17 trillion won,” adding, “Companies invest large funds in facilities such as building factories and expanding lines, leading to liquidity problems, but the industry bank’s support program will help alleviate many of these difficulties.” ‘,
,
, The meeting on this day was prepared to discuss the comprehensive support program for the semiconductor industry, current issues related to semiconductor mega clusters, and measures to promote the system semiconductor industry.,
,
, ‘President Yoon specifically instructed the Ministry of Industry to develop innovative measures to strengthen the capacity of system semiconductors that will determine the success or failure of the future semiconductor industry. However, despite considering in depth the option of providing direct subsidies to semiconductor companies, the government decided not to provide direct support. ‘,
,
, Yoon “Electricity, water, road infrastructure developed rapidly”,
,
, ‘President Yoon promised in his remarks that the government and the public sector will take responsibility for developing electricity, water, roads, and other infrastructures at a rapid pace to ensure no delay in creating semiconductor clusters. He said, “We will establish a 1 trillion won ‘semiconductor ecosystem fund’ to support promising fabless (semiconductor design specialized firms) and SMEs (materials, parts, equipment companies) to grow into world-class companies,” and emphasized, “We will quickly expand research infrastructure that can be jointly used, including mini fabs (research facilities equipped with 300mm wafer processing equipment for demonstrating semiconductor materials, parts, and equipment) so that companies can use them at the desired level.” ‘,
,
,

President Yoon Seok-yeol is presiding over the first economic issue checkup meeting at the presidential office building in Yongsan, Seoul, on the afternoon of the 9th. [Image Source=Yonhap News],
,
, ‘Regarding the support for the semiconductor industry, President Yoon responded to the argument of ‘corporate tax reduction for large companies’ by stating, “When corporate investment expands and profits increase through tax support, the public enjoys better quality jobs, revitalizing livelihoods and increasing tax revenue, because ‘semiconductors are directly tied to people’s livelihoods'” and explained that “over 70% of the benefits from the comprehensive semiconductor industry support program will go to small and medium-sized enterprises.” ‘,
,
, ‘President Yoon also called for proactive measures to develop system semiconductors, which have a minimal global market share compared to memory semiconductors. He said, “The success of the semiconductor industry will be determined in the system semiconductor sector that accounts for two-thirds of the entire market, and our fabless industry’s market share remains at around 1%, with a continuing technology gap with leading foundries.” He instructed the Ministry of Industry to develop urgent measures to enhance the competitiveness of system semiconductors.’,
,
, Avoiding direct subsidy support like the US and Japan,
,
, ‘The government, which had considered providing direct subsidies through finance to foster the semiconductor industry, decided at the meeting not to provide direct support. A high-ranking official at the presidential office explained to Asia Economy, “Countries with semiconductor plants are South Korea and Taiwan, but they do not provide direct subsidies,” and clarified the difference by saying, “Countries seeking to attract semiconductor plants like the US and Japan offer large-scale subsidies.” ‘,
,
,