Korea to Rise Subsidies for Chip Industry to $23 Billion

The South Korean government announced a 27% rise in funding to support the country’s chip industry. This would raise a previous allocation to KRW33 trillion ($23.2 billion) due to rising trade friction with the US and increasing competition from China.

The government also plans to increase the financial assistance program for the sector by 17.6% to KRW20 trillion. China accounted for 32.8% of South Korea’s $141.9 billion in chip exports in 2024, while the US imported 7.5%.

The US government is expected to announce the tariff rate on imported chips soon. Earlier in April, the nation temporarily exempted smartphones, computers, and a range of other products from reciprocal tariffs. Nearly a year ago, the South Korean government committed KRW26 trillion to support the country’s chip industry.