South Korea will launch a 5 trillion won ($3.52 billion) semiconductor fund targeting promising chip materials, parts, equipment and fabless companies, a presidential official said, as Seoul seeks to accelerate plans for new chip manufacturing hubs across the country.
The government will also provide a further 5trn won in trade finance for suppliers, Presidential Chief of Staff Kang Hoon-sik said yesterday.
The measures are part of Lee’s semiconductor megaproject initiative unveiled in June, under which Samsung Electronics and SK Hynix, together with suppliers and local governments, are expected to invest more than $576 billion in new chip manufacturing projects, including major fabrication facilities in the country’s southwest region.
“The government will create a new semiconductor fund worth about 5trn won focused on promising materials, parts and equipment firms and fabless companies,” Kang said.
The government would also launch a 10-year, 1trn won programme to support co-operation between large companies and smaller suppliers across semiconductor development, testing and production, Kang said.
The government will also seek passage of a Mega Special Zone Act at parliament within the year to speed up permits, environmental reviews and infrastructure construction, he said.
In his opening remarks, Lee urged the Defence Ministry to relocate functions of a military air base in Gwangju by mid-2028 to accelerate development of a semiconductor manufacturing complex planned for the site.
Kang said the government would ensure power and water supplies are available on schedule for new semiconductor projects. For the planned chip cluster in the southwestern Gwangju-South Jeolla region, authorities plan to secure 650,000 metric tons of water daily by 2030 using recycled wastewater and supplies from nearby dams, he said.
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