South Korea is pumping $19 billion into the chip sector

South Korean President Yoon Suk Yeol unveiled a KRW 26 trillion ($19.1 billion) support package for the country’s chip manufacturing sector, including finance, infrastructure, research and development, and support for SMEs, AFP reported.

Yoon reportedly said that a KRW 17 trillion semiconductor financial support program administered by the Korea Development Bank will enable companies to prepare new investments.

The incentives also include a KRW 1 trillion fund aimed at supporting factory-less enterprises and SMEs operating across the sector.

AFP said the program includes KRW 10 trillion in funds to help domestic producers of chips and related components and materials, as revealed by Finance Minister Choi Sang-mok in mid-May.

Yoon reportedly added that the government also plans to expand tax breaks on chip investments to boost employment.

Choi previously said he was working with the government to extend the sunset clause covering the investment tax credit for strategic technologies to end this, while also expanding the scope of tax credits for research and development investments.

In January, local media reported that Samsung and SK Hynix plan to invest KRW 622 trillion to expand chip production capacity in the 21 million square meter mega cluster, which will host 16 new manufacturing plants by 2047.