By Xu Aiying and Yoon Hee Young
Photos = Cheong Wa Dae's official Facebook page

President Moon Jae-in on May 13 said Korea "will solidify its position as the world's top memory semiconductor producer and take the lead globally in system semiconductors as well, thereby achieving the goal of becoming a comprehensive semiconductor powerhouse in 2030."

At a presentation on "K-semiconductor strategy" at the Samsung Electronics plant in Pyeongtaek, Gyeonggi-do Province, he added, "Through Korea's public-private semiconductor strategy, we will surmount the rough waves caused by global supply chain reorganization."

The strategy seeks to establish a "K-semiconductor Belt" connecting the following regions in Gyeonggi-do: the Pangyo district in the city of Seongnam; Giheung; Hwaseong; Pyeongtaek; Cheonan; and the Onyang neighborhood of Asan. The belt will also cover Icheon in Gyeonggi-do and Cheongju, Chungcheongbuk-do Province, centered around the semiconductor cluster in Yongin, Gyeonggi-do.

Domestic semiconductor giants including Samsung Electronics and SK Hynix will invest KRW 510 trillion by 2030, starting with KRW 41.8 trillion this year.

The government will offer an exceptional tax deduction of 40%-50% for semiconductor R&D and 6%-16% for facility investment.

The president said, "I have great respect for the courage of entrepreneurs who in the face of uncertainty have taken on new challenges more actively by choosing to make pioneering investments," adding, "Discussions with the National Assembly on enacting a special act on semiconductors will also commence in earnest to create regulatory exemptions, train talented individuals and expand support for rapid investment."

"My Administration will also work with businesses as one team so Korea stays a semiconductor powerhouse. We will definitely support their efforts."

He said, "A 'K-semiconductor Belt' will be established so Korea can emerge as the world's foremost semiconductor country. In addition to semiconductor production processes ranging from design and manufacturing to packaging, we will establish a close-knit supply network for materials, parts and equipment."

"We will provide low-interest loans for facility investments by operating a special financial support program backed by more than 1 trillion won."

The chief executive added, "Over the next 10 years, we will nurture 36,000 talented key semiconductor specialists and strive to develop core technologies with high growth potential, such as next-generation power semiconductors, artificial intelligence semiconductors and state-of-the-art sensors."

Bloomberg reported on Korea's investment plan for semiconductor companies, saying, "South Korea unveiled ambitious plans to spend roughly $450 billion to build the world's biggest chipmaking base over the next decade."


xuaiy@korea.kr