On the 11th, the People Power Party, through a bill proposed by Lee Chul-gyu, the chairman of the Industry, Trade, and Energy Small and Medium Venture Business Committee, introduced a Semiconductor Special Act. The main aspects of the proposal include financial support such as subsidies, the creation of a special account, the establishment of a semiconductor support organization, simplified permit procedures for semiconductor clusters, and flexible working hours. The party emphasized that it will thoroughly review the bill based on national consensus and full national capability.
The party noted that the semiconductor industry is a key to the future’s new industries and a foundation for national competitiveness, describing it as now a crucial sector that affects both the economy and national security amid the U.S.-China trade conflict. As global competition intensifies, especially among advanced countries, the People Power Party outlined the critical situation of securing leadership in the semiconductor industry.
Although major competing countries are heavily investing governmental subsidies to foster the semiconductor industry and attract facilities, South Korea’s governmental support is largely limited to investment tax credits, despite large-scale private investments.
In response to these global trends, the proposed Semiconductor Special Act includes preparing grounds for subsidies to build infrastructure, establishing a special account to ensure stable financial resources for semiconductor facilities and infrastructure, forming a Semiconductor Industry Competitiveness Enhancement Committee and Semiconductor Innovation Growth Support Group for administrative and institutional support, simplifying permit processes for semiconductor clusters, applying exceptions to the 52-hour workweek for the development of new technologies, and enhancing support for the components, materials, and equipment sectors.
The People Power Party expressed its intent to consolidate public and national efforts for the semiconductor special bill’s review in the National Assembly. Chairman Lee Chul-gyu also mentioned that various related bills have been submitted by the opposition parties, hoping for bipartisan cooperation during the bill review, expressing a desire for policies that prioritize the economy first.