Gov't to invest $7.3 billion in semiconductor sector as demand rebounds

Home > Business > Economy

Gov't to invest $7.3 billion in semiconductor sector as demand rebounds

Published: 13 May. 2024, 16:32

SHIN HA-NEE
shin.hanee@joongang.co.kr

Deputy Prime Minister Choi Sang-mok speaks during an economic ministerial meeting at the Seoul Government Complex in central Seoul on Monday. [NEWS1]

The government will create a financial support package worth more than 10 trillion won ($7.3 billion) dedicated to the semiconductor sector, financed through both public and private funding, Choi Sang-mok, deputy prime minister and the minister of economy and finance, said Monday.

“With semiconductor demand rebounding, we are witnessing a favorable trend across various economic indexes,” said the deputy prime minister, stressing that “establishing a semiconductor ecosystem is one of the most crucial tasks.” The comment came during Choi’s visit to HPSP, a chip equipment supplier based in Hwaseong, Gyeonggi, on Friday.

The plan aims to facilitate growth across the entire semiconductor supply chain, including research and development and facility investments with a focus on part suppliers and semiconductor packaging.

The upcoming support program will be worth more than 10 trillion won in total, according to Choi. The program will be financed through policy funds from state-backed banks and agencies as well as private funding.

The government also announced new plans to facilitate venture investments and revive fishing villages on Monday during an economic ministerial meeting chaired by Choi.

Venture investments into domestic startups amounted to 1.9 trillion won in the first quarter of this year, up 6 percent from the same period a year ago, according to the Finance Ministry.

To ensure a stable inflow of venture investment, the government will establish a 2.8 trillion won fund within 2024 and set up a comprehensive plan to further boost the market by the latter half of the year.

Moreover, under a new initiative aimed at reviving the economy at fishing villages, which are facing a population crisis, the government hopes to encourage private investments into coastal areas and deregulate the fishery sector.

“We will attract private investment [into coastal areas] utilizing state-owned land measuring 58 million pyeong [47,379 acres] in total, and name coastal cities such as Busan hubs for marine tourism,” said Kang Do-hyung, minister of oceans and fisheries.

“The government will reduce relevant regulations by half by 2027 in the fisheries industry and deploy smart technology that will enable remote management at aquaculture farms.”

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]