Increasing Foreign Investment in Semiconductors... Up to 50% Cash Support of Investment Funds

[Asia Economy Reporter Seo So-jeong] The government will significantly increase cash support to attract foreign investment in advanced technologies and key supply chain sectors that have a large ripple effect on the domestic economy.

The Ministry of Trade, Industry and Energy announced on the 17th that it has revised and announced the "Cash Support System Operation Guidelines" after approval by the Foreign Investment Committee.

First, for foreign investments in national strategic technologies such as semiconductors, secondary batteries, and vaccines, cash support will be provided up to 50% of the investment amount, and the national government’s share will be raised by 20 percentage points from the existing 30% to 50%.

For investments that contribute to strengthening supply chains and carbon neutrality, an additional support of up to 10 percentage points will be provided on top of the calculated cash support limit.

Furthermore, for roundabout investments reinvested domestically through corporations established overseas using domestic capital, cash support will be excluded, and quantitative evaluation will be added when assessing cash support eligibility to establish clear criteria, thereby supplementing the system.

In addition, grounds will be newly established to reduce the cash support limit for foreign investments with low contribution to the domestic industry.

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