A new program for comprehensive government support for semiconductors has allocated KRW 26 trillion for the industry. Shown is chip production at a clean room of Samsung Electronics. (Samsung Electronics)

By Lee Kyoung Mi

A comprehensive government support program has earmarked KRW 26 trillion for the domestic semiconductor industry.

President Yoon Suk Yeol on May 23 said, "The semiconductor industry is the most important and certain basis to further enrich the people's livelihood and massively propelling the Korean economy," he said, pledging to support not only finance, infrastructure and research and development (R&D) but also small and medium businesses.

He said this while chairing a meeting on reviewing economic issues at the Office of the President in Seoul's Yongsan-gu District.

First, KRW 17 trillion of the slated amount will go toward setting up a financial support (loan) program at the Korea Development Bank. Support for low interest rates for investment in semiconductor facilities is expected to resolve corporate problems, and the tax credit for national strategic technology, which expires this year, will also be extended.

Support for infrastructure such as roads, water and electricity will receive a boost for swift development of a "semiconductor mega cluster," or a concentration of chip companies and organizations in the cities of Pyeongtaek, Hwaseong and Yongin in the southern region of Gyeonggi-do Province.

In addition, investment in R&D and human resource development will rise from KRW 3 trillion over the past three years to over KRW 5 trillion over the next three years.

"As each country in the world stakes its national destiny on semiconductors, I'll directly jump in to resolve problems that require diplomatic resolutions," President Yoon said. "I ask for each government ministry to be meticulous to ensure that the comprehensive chip support program is smoothly implemented."

km137426@korea.kr