South Korea announces over $23 billion for chip sector as Trump tariffs on semiconductor imports loom

Core Insights - South Korea announced a support package of 33 trillion won ($23.25 billion) for its semiconductor industry amid rising uncertainty over U.S. tariffs [1][3] - The U.S. Department of Commerce is initiating an investigation into the national security implications of semiconductor imports [2][3] - South Korea's semiconductor exports reached $141.9 billion in 2024, accounting for over 20% of the country's total exports [6] Government Support Measures - The South Korean government will subsidize the construction of underground power transmission lines to semiconductor clusters and increase the funding ratio for infrastructure in advanced industrial complexes from 30% to 50% [4] - A total of 20 trillion won in low-interest loans will be provided to semiconductor companies from 2025 to 2027, an increase from the current 17 trillion won [4] - Training and research programs for domestic master's and doctoral students, as well as global joint research programs for foreign talent, will be introduced [5] Market Impact - The South Korean Kospi index rose by 0.68%, with Samsung Electronics increasing by 1.07% and SK Hynix by 0.17% [5] - The U.S. is the second-largest export destination for South Korea, with semiconductor exports to the U.S. rising 10.5% year-on-year to $127.8 billion in 2024 [6] - The support package is about a quarter more than the 26 trillion won committed last year, indicating a strong governmental commitment to bolster the semiconductor sector [3]