S. Korea plans to invest $6.45b in semiconductor industry

The South Korean government plans to invest 8.8 trillion won ($6.45 billion) in 2025 to boost the semiconductor industry, Finance Minister Choi Sang-mok revealed this initiative during a ministerial meeting on Wednesday.

The investment will focus on providing low-interest loans, enhancing infrastructure, and developing talent to strengthen the country’s semiconductor ecosystem. This move comes as firms in the industry seek more support to compete global.

This comprehensive update on the 26 trillion won package announced by President Yoon Suk Yeol in May is focused on offering more favourable borrowing conditions compared to market loans.

As part of the recent plan, the government will complete the offering of low-interest loans with a total value of 4.7 trillion won next year. This includes investing 250 billion won in the state-run Korea Development Bank to secure loans of 4.25 trillion won at a preferential interest rate higher than the current rate of up to 1.4 per cent.

Attribution: The Korea Herald

Subediting: M. S. Salama