SEOUL: South Korea announced on Tuesday that it will increase its financial aid package to 33 trillion won ( roughly$ 23 billion ) as part of efforts to address concerns raised by the Trump administration’s tax increases.
The package’s size is roughly 26 % higher than the 26 trillion won ( roughly$ 18 billion ) amount of the previous year’s announcement. Authorities are putting a focus on offering low-cost money, subsidies, and other financial incentives to encourage investment in the semiconductor industry. By increasing funding for research and development activities and high-tech production technology, the government aims to promote the development of sophisticated cards.
Authorities also intend to increase investment in professional infrastructure, including covering the majority of the costs associated with the construction of underwater power transmission systems in transistor clusters in Yongin and Pyeongtaek, which have attracted investments from chip tycoons Samsung and Stat Hynix.
The plans, according to the state, are intended to address concerns raised by U.S. trade policies and to keep South Korea’s chip industry’s competitiveness. There are growing concerns that North Korean firms are producing higher-tech chips for innovative apps like artificial intelligence, while Chinese rivals are quickly closing the memory chip space.
The U.S. government’s strategies for mutual tariffs have been delayed by 90 days. In a plan meeting on Tuesday, South Korean Finance Minister Choi Sang-mok stated that there is excitement that product-specific taxes will be announced for businesses like semiconductors and pharmaceuticals. In the face of a worldwide trade war,” this is a significant time to strengthen the profitability of our firms.”
As part of Seoul’s continuing efforts to protect the nation’s export-driven economy from negative effects, South Korea intends to send a delegation there quickly to address current tariff increases and other trade issues.
To assist its automobile industry in coping with the effects of higher tariffs imposed by the United States, the government also announced last week an emergency funding program worth 3 trillion won ($ 2 billion ). A new funding system supported by automakers Hyundai and Kia, along with financial institutions, is included in the package, which includes expanded low-cost funding from state-run creditors and additional financial assistance for struggling automakers and auto parts manufacturers.
