"Urgent Day Amid Car Semiconductor Crisis"... Ruling Party Special Committee Reapproval Delayed Indefinitely

Expansion and Reorganization of Real Estate and Vaccine Special Committees
Semiconductor Special Committee Priority Delayed
Urgent Decision-Making by Party, Government, and Cheong
Postponed... May-June Is the Critical Period
Liquidity Concerns for Auto Parts Companies

Song Young-gil, the newly appointed leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 3rd and delivering an opening remark. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Koo Chae-eun] The Democratic Party of Korea's reapproval process for the 'Semiconductor Technology Special Committee (Semiconductor Special Committee),' launched last month, is being repeatedly delayed. According to the party's constitution and regulations, the special committee must be reapproved when a new leadership is installed, but the process is slowing down as priority is given to the Real Estate and Vaccine Special Committees. As a result, decision-making on semiconductor industry loan support and the establishment of special laws at the party, government, and Blue House levels is also being postponed.

According to political circles on the 11th, the Semiconductor Special Committee, launched on the 21st of last month, is delaying the reapproval process as it deliberates whether to maintain the existing Chairperson Yang Hyang-ja system or have Representative Song concurrently serve as chairperson. In contrast, the Real Estate and Vaccine Special Committees completed their restructuring after Representative Song Young-gil was elected on the 2nd. A key Democratic Party official said, "It seems that Representative Song is considering whether he can make decisions while balancing with other special committees if he concurrently holds the chairmanship of the Semiconductor Special Committee."

The issue is that from this month, there are concerns about a liquidity crisis caused by the 'semiconductor lean season,' requiring urgent responses from the party, government, and Blue House. Previously, the Semiconductor Special Committee discussed financial support measures such as extending loan maturities and emergency loan support for auto parts companies, but the process has stalled due to the lack of reapproval. In particular, there are calls for semiconductor companies to be included in the corporate delegation participating in the Korea-US summit on the 21st, but coordination has also stalled as the reapproval of the special committee is delayed.

[Image source=Yonhap News]

The Semiconductor Special Committee has set a roadmap to propose the Semiconductor Support Special Act by August, which includes tax benefits for semiconductor research and development (R&D) and facility investment, improvements to semiconductor workforce training systems, and easing of chemical substance regulations, aiming to pass it at the regular National Assembly session in September.

On the 6th, Representative Song visited the Hyundai Motor plant in Ulsan and declared, "Through the Semiconductor Special Committee, we will check the supply and demand status of vehicle semiconductors and consider how to create alternatives, as well as how to support the diversification of Korea's vehicle semiconductor imports, production, technology, and development going forward." Floor Leader Yoon Ho-jung also stated at the policy coordination meeting held the same day, "As the semiconductor shortage is expected to continue, we will present bold support measures at the special committee level."

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