Government Strengthens System Semiconductor Ecosystem... Supports Private Investment and Policy Finance

Support for Large Projects Including Samsung's 133 Trillion Investment and SK Yongin Semiconductor Cluster
Preferential Interest Rates and Special Guarantees Provided Through Policy Funds

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will strengthen the system semiconductor ecosystem through large-scale private investment support and activation of policy finance. While fully supporting large-scale investments by Samsung Electronics and SK Hynix, it plans to provide preferential interest rates and special guarantees through policy funds of national financial institutions, and promote new investments using funds raised mainly by the private sector.

On the 25th, the government held the 5th Innovation Growth Big 3 Promotion Meeting chaired by Deputy Prime Minister for Economy Hong Nam-ki and announced the "Plan to Accelerate Private Investment Execution and Strengthen Investment and Guarantees in the System Semiconductor Sector" containing these details. The core is to support large-scale private investment projects to expand system semiconductor infrastructure, which is less competitive compared to memory semiconductors, and to enhance system semiconductor competitiveness through various funds and policy finance.

First, the government will promptly address difficulties and regulatory relaxations arising during the large-scale private investment led by Samsung Electronics and SK Hynix. Samsung Electronics has decided to invest 133 trillion KRW in system semiconductors by 2030, and SK Hynix will invest 122 trillion KRW in the Yongin semiconductor cluster, which will house more than 50 domestic semiconductor companies. The government plans to complete related procedures to enable the groundbreaking of the Yongin semiconductor cluster by the end of the year and to build infrastructure such as water and electricity in a timely manner.

A 650 billion KRW fund raised mainly by the private sector for system semiconductor investment will also be actively utilized. Through the system semiconductor win-win fund, the government will invest 40 to 50 billion KRW in 15 to 25 companies and continue investing in 'Big 3 (semiconductors, bio, future cars)' and 'DNA (data, network, AI)' companies. An asset management company for a 100 billion KRW scale materials, parts, and equipment semiconductor fund will be selected within the year. Additionally, a total of 280 billion KRW in follow-up and new funds will be created to strengthen the system semiconductor ecosystem.

Furthermore, policy fund loans and policy guarantee programs for system semiconductor companies will be provided through national financial institutions. The Industrial Bank of Korea operates programs such as the 'Industrial Structure Advancement Program' and the 'Korea Great Transformation New Deal Special Fund' totaling 6.5 trillion KRW. Through these programs, medium-sized and small semiconductor-related companies can receive policy funds for facility and technology investments and business restructuring. Guarantee support through credit and technology guarantee funds will also be strengthened.

Park Jin-gyu, Vice Minister of the Ministry of Trade, Industry and Energy, said, "For system semiconductors to truly settle on a growth trajectory, it is essential to create a self-sustaining ecosystem based on active private investment," adding, "We will swiftly resolve private investment difficulties through cooperation with the industry and related ministries, and support our companies to actively utilize policy finance and private funds so that various new investments can be promoted."

This content was produced with the assistance of AI translation services.