South Korea is ramping up its semiconductor ambitions with a 50 trillion won ($34.4 billion) Advanced Strategic Industry Fund, targeting over 20 trillion won for the semiconductor sector this year alone. This represents an escalation of government support beyond previous commitments, with major investments planned for critical infrastructure including underground power transmission networks for semiconductor clusters in Yongin and Pyeongtaek.
Vice Prime Minister Choi Sang-mok announced the enhanced initiative will expand support for semiconductor companies from 26 trillion won to 33 trillion won. The government plans to invest 1.2 trillion won in six underground transmission lines for semiconductor clusters by 2038, with 62.6 billion won earmarked in this year’s supplementary budget.
The Yongin Cluster – part of a broader strategy that aims to generate millions of jobs and hundreds of trillions of won in production value – will see construction accelerated under the new plan. The initiative also introduces subsidies covering 30-50% of new investments for advanced small and medium-sized enterprises in materials, parts, and equipment production, with higher rates for non-metropolitan companies.
To prevent brain drain, new R&D training programs for master’s and doctoral personnel will launch next year, complemented by initiatives to attract foreign researchers.
“This decisive action addresses heightened uncertainties from strengthened export controls that threatened to undermine our market position,” a government spokesperson noted.
