The government is taking full responsibility for the cost of burying semiconductor transmission lines, which amounts to 1.8 trillion won, and is rolling up its sleeves to support semiconductors by providing semiconductor policy financing worth more than 14 trillion won by 2025.

On the 27th, the government announced the ‘Measures to Strengthen Support for the Semiconductor Ecosystem’ at the Ministerial Meeting on Strengthening Industrial Competitiveness.

Recently, uncertainty has been growing throughout the semiconductor industry due to China's pursuit and the inauguration of the new U.S. administration.

Accordingly, the government plans to mobilize all available resources to actively support companies in overcoming the semiconductor industry crisis and making a comeback.

First, we plan to significantly reduce the burden on companies regarding semiconductor cluster infrastructure through consultation with the National Assembly.

In particular, the government will take significant responsibility for burying transmission lines in the Yongin-Pyeongtaek semiconductor cluster, worth approximately KRW 1.8 trillion, and share the cost. It also plans to increase the support limit for infrastructure in national high-tech strategic industrial complexes.

We will activate programs to attract excellent overseas talent in the field of advanced technology, and promote the training of specialized personnel in advanced industries by expanding incentives for excellent faculty members at the four major science and technology research institutes and specialized graduate schools.

In addition, tax support for corporate R&D and facility investment will be significantly expanded.

Investment in national strategic technologies in consultation with the National AssemblyWe are also pursuing a plan to include R&D equipment and other R&D facility investments in the detailed tax deduction target and to increase the national strategic technology investment tax deduction rate for semiconductor companies.

We also plan to support smooth domestic semiconductor production by applying quota tariffs in 2025 to key raw materials for semiconductor manufacturing, such as quartz glass substrates, copper foil and glass fiber for copper clad laminate (CCL), and tin ingot.

In addition, we will supply policy financing totaling over 14 trillion won to all semiconductor sectors, including small and medium-sized enterprises, fabless, and manufacturing, by 2025, and fully execute semiconductor fund investments.

The Industrial Bank of Korea plans to supply KRW 4.25 trillion in low-interest semiconductor loan programs, which offer the lowest interest rates in the market, by 2025 and create a new semiconductor ecosystem fund worth KRW 120 billion by 2025, expanding the total to KRW 420 billion.

Finally, the power and water supply plan for the Yongin Semiconductor Cluster will be finalized and an agreement will be signed between relevant organizations. In the case of the Yongin National Industrial Complex, a plan for power supply and cost sharing of 3 GW (from 2030) in the first phase was prepared, and a provisional agreement was reached on a plan for additional supply in the second phase (from 2039).

In the case of the Yongin General Industrial Complex, following the Phase 1 contract for a 3GW supply plan (from 2027) for which an agreement was signed in 2021, a final agreement was reached on the Phase 2 additional power supply plan (from 2039) and cost-sharing plan.

The government plans to continue to promote the strengthening of domestic semiconductor competitiveness by closely consulting with the National Assembly on budget and tax law revisions to support semiconductors and actively participating in the National Assembly's discussions on the enactment of the 'Semiconductor Special Act'.