[Inside Chodong] Samsung Emerges as the Biggest Beneficiary in Scaling Up Advanced Strategic Industries

The national advanced strategic industry development policy can be summarized as "by Samsung, of Samsung, for Samsung." The role of Samsung Electronics Chairman Lee Jae-yong has also grown in South Korea's advanced industry development policy, which President Yoon Suk-yeol is personally overseeing and supporting.

Inside Samsung Electronics Pyeongtaek Campus

Last month, the government newly added bio to the category of advanced strategic industries. It designated 17 national advanced strategic technologies across four advanced industries?semiconductors, displays, secondary batteries, and bio?to actively foster these industries. If the private sector invests more than 550 trillion won in advanced industries over the next five years, the government will provide concentrated incentives through national project support, including expedited permits and approvals, regulatory reforms, and tax credits as policy support.

As the government emphasizes the private sector’s role in fostering national advanced strategic industries, Samsung has taken center stage. The giant group led by Chairman Lee is the only one among the four major domestic conglomerates whose core affiliates are all included within the four categories of advanced strategic industries. Without Samsung, fostering advanced strategic industries itself becomes impossible.

At the semiconductor national strategy meeting held this month, President Yoon stated, "Semiconductor competition is an industrial war and a national total war," emphasizing the importance of nurturing the semiconductor industry. Samsung plays more than 90% of the role in the world’s largest semiconductor complex that the current government is promoting to enhance semiconductor competitiveness. Samsung Electronics will invest 300 trillion won over 20 years in the Yongin semiconductor cluster development project. The world’s largest advanced semiconductor complex, to be built on a 7.1 million square meter site in the Nam-sa-eup area of Yongin, will house five advanced semiconductor manufacturing fabs.

Samsung Display’s additional investment has also gained momentum thanks to government support aimed at reclaiming the top spot in the global display market by 2027. Samsung Display will invest 4.1 trillion won to establish an OLED production base in Asan, Chungnam. After designating five core display technologies as national strategic technologies, the government decided to provide about 900 billion won in policy financing to significantly reduce the investment burden on companies. Infrastructure support such as power, water, wastewater treatment, and roads will also be accelerated.

With the government newly adding bio to the advanced strategic industry category, Samsung Biologics can now receive up to a 25% tax credit benefit for facility investments. Large and medium-sized enterprises investing in national strategic technologies can deduct 15% of their investment amount from taxes, while small and medium enterprises can deduct 25%, with an additional 10% deduction available this year. Bio is a representative "future growth engine" for Samsung, a field where it is actively expanding through investment. With government support promised not only in tax benefits but also in research and development (R&D) and talent cultivation, it has become easier to enhance bio competitiveness.

President Yoon previously served as the head of the special prosecution team investigating the Choi Soon-sil political scandal, handling bribery allegations against Samsung Group and influencing Chairman Lee’s detention. He played the role of a "chaebol grim reaper." However, early in his presidency, he chose a "win-win" approach with private companies by granting special pardons and reinstatements to Chairman Lee and other chaebol heads to revive the economy and strengthen the competitiveness of advanced industries.

Samsung must bear a heavy burden. The policy benefits gained through active government support should be shared to create an ecosystem where medium-sized and small enterprises can also coexist and prosper. We look forward to a "trickle-down effect" from Samsung so that the government’s advanced industry development policy is not framed as "special favors for certain large corporations."

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