Group 1: Market Reaction and Foreign Investment - The Korean stock market, represented by the KOSPI, experienced a significant rise following the inauguration of President Lee Jae-myung, with strong performances from semiconductor stocks like SK Hynix and Samsung Electronics [1][3] - Foreign investors played a crucial role in driving the market up, with net purchases exceeding 1 trillion KRW on June 4, marking the first occurrence since August 16 of the previous year, primarily focusing on leading semiconductor companies [3] Group 2: Semiconductor Industry Policies - President Lee Jae-myung pledged to establish South Korea as a "world-leading semiconductor power" and announced plans to support the semiconductor industry through subsidies and tax incentives, including a production tax credit of up to 10% for domestic semiconductor products [3][9] - The proposed Semiconductor Special Act aims to provide various support measures for the semiconductor industry, but its progress faces challenges due to political opposition regarding labor regulations [6][4] Group 3: Labor Regulations and Industry Challenges - The implementation of the 52-hour workweek regulation since 2018 has been criticized by the semiconductor industry for hindering research and development progress, with calls for exemptions for semiconductor research positions [5][6] - The labor shortage in the semiconductor sector is projected to reach approximately 56,000 by 2031, with a significant increase in the gap from 1,784 in 2022, exacerbated by a trend of students favoring medical fields over engineering [7] Group 4: Global Competition and Talent Acquisition - South Korea faces intense competition for semiconductor talent, with companies like Micron Technology actively recruiting in South Korea, offering significant salary increases and benefits [8] - The South Korean government is revising regulations to strengthen the protection of core technologies, with increased penalties for technology outflow, reflecting the competitive landscape in the semiconductor industry [8][9] Group 5: International Relations and Economic Pressures - The U.S. government is reconsidering its subsidy policies for semiconductor investments, which may impact South Korean companies' plans to invest in the U.S. [10] - South Korea's semiconductor industry is under dual pressure from U.S. demands for increased investment and competition from Chinese firms, leading to concerns about the sustainability of domestic production [10][11]