[Friday Story] Why Yoon Seok-yeol's Transition Team Received Separate Reports Only on Semiconductors

Transition Team Receives Separate Reports on Semiconductors
Yoon Emphasizes 'Semiconductor Super-Gap'

President-elect Yoon Suk-yeol (center) is having a luncheon meeting with Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry (left, Chairman of SK Group), and heads of six economic organizations at the Presidential Transition Committee office in Tongui-dong, Jongno-gu, Seoul on the 21st.
[Image source=Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] "I want to study semiconductors."

On May 17 last year, before even declaring his entry into politics, President-elect Yoon Seok-yeol, a "political rookie," visited the Seoul National University Semiconductor Joint Research Center, known as a "semiconductor think tank," and said this. Wearing a cleanroom suit without any aides, Yoon toured the facilities and production processes inside the research center with professors. His interests included the difference between semiconductor silicon wafers (thinly sliced discs of silicon blocks) and substrates, and the role of photoresist (a photosensitive material used to draw circuit patterns on wafers). Yoon, who thought of semiconductors before any other industry, was elected president 10 months later and is now speaking of a "semiconductor super-gap," saying in front of economic leaders, "Now, wars are fought not with guns but with semiconductors."

President-elect Yoon Suk-yeol visited the Seoul National University Semiconductor Joint Research Center on May 17 last year and took a commemorative photo in front of the bust of the late semiconductor physicist Dr. Kang Dae-won.
[Image source=Yonhap News]

President-elect Yoon's passion for semiconductors was fully reflected in the Presidential Transition Committee as well. The Economic Subcommittee 2 of the transition team received a separate briefing on the semiconductor industry on the 23rd, a day before the official Ministry of Trade, Industry and Energy report. At this meeting, the transition committee shared with the ministry the specific directions and strategies of Yoon's "semiconductor super-gap strategy." It is known that they reviewed the recent semiconductor market, global supply chains including raw materials and energy, plans to train 100,000 semiconductor technology personnel under the Yoon administration, the construction of semiconductor future cities, and other major semiconductor policies.

Within the transition committee, it was reported that due to the increasing importance of economic security, there was a need to separately examine the semiconductor industry, which accounts for 20% of exports, leading to this separate briefing.

President-elect Yoon plans to maintain the super-gap in the memory sector through active government support such as talent development and supply chain strengthening, while surpassing leading countries in the foundry (contract manufacturing) sector to stand tall as a "semiconductor superpower."

Recently, major advanced countries have been intensifying semiconductor industry support policies amid US-China conflicts and protectionism. The industry expects Yoon's approach to bring differentiated and proactive semiconductor support policies compared to the current government. The US is offering unprecedented tax incentives for semiconductor factory establishment, China exempts semiconductor companies from income tax for up to 10 years, and the EU is known to provide subsidies covering up to 40% of investment costs. The Japanese government has also decided to urgently allocate a budget of about 600 billion yen (approximately 6.2 trillion won) to expand semiconductor production capacity.

The core of Yoon's semiconductor policy is the "semiconductor future city" strategy. The key is to establish semiconductor hubs nationwide. While nurturing semiconductor future cities in Yongin, Icheon, and Pyeongtaek, where Samsung Electronics and SK Hynix are located, the plan includes expanding tax credits for R&D and facility investments, training 100,000 technical personnel, supporting infrastructure such as power and industrial water, and promoting trade cooperation and alliance strengthening with major countries in response to supply chain restructuring.

Yoon also announced plans to build an automotive power semiconductor cluster in Gwangju Metropolitan City. This region is currently developing related industries under the current government's policy to foster future car hubs such as electric vehicles. One of Yoon's major pledges to promote such semiconductor policies is to create a public-private cooperative semiconductor fund called the "Komatech Fund" (tentative name). The government will initially invest 50 trillion won and encourage private companies to invest as well.

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