South Korea unveils $23 billion support package for chips amid US tariff uncertainty

Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: "

South Korea unveils $23 billion support package for chips amid US tariff uncertainty

, Reuters - 7:06 PM ET 4/14/2025 default

SEOUL (Reuters) - South Korea announced on Tuesday an increase in its support package for the country's vital semiconductor industry to 33 trillion won ($23.25 billion), up about a quarter from a 26 trillion won package unveiled last year.

The measures come in response to calls on the government to expand support at a time of growing policy uncertainty under the current U.S. administration and rising competition from Chinese rivals, the government said in a statement.

Seoul will also ramp up a financial assistance programme for the chips industry to 20 trillion won, versus the previous 17 trillion won, according to the joint statement from various ministries including the trade ministry.

South Korea's decision to pump more money into its key chips sector is designed to help companies cope with heavier costs as they compete globally, it said.

Asia's fourth-largest economy is home to the world's top memory chip makers, Samsung Electronics ( SSNLF ) and SK Hynix ( HXSCF ), though they have fallen behind some rivals in areas such as chip design and contract chip manufacturing.

In 2024, South Korea's exports of semiconductors stood at $141.9 billion, accounting for 21% of the country's total, government data showed.

Shipments to China and the United States stood at $46.6 billion and $10.7 billion, respectively.

U.S. President Donald Trump said on Sunday he would be announcing the tariff rate on imported semiconductors over the next week, adding that there would be flexibility with some companies in the sector.

Last week, South Korea announced emergency support measures for its auto sector, seeking to reduce the blow of U.S. tariffs on a sector that has seen years of sharply rising exports to the United States.

The measures include financial support for the auto industry as well as tax cuts and subsidies to boost domestic demand, while the government also vowed efforts to negotiate with the U.S. and help expand markets.

($1 = 1,419.1700 won)

(Reporting by Hyunsu Yim and Jihoon Lee; Editing by Ed Davies)

(c) Reuters 2025. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.