The government has announced that it will create a comprehensive support program worth 26 trillion w.. – MK – 매일경제
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The government has announced that it will create a comprehensive support program worth 26 trillion won to support the semiconductor industry.
On the 23rd, President Yoon Suk Yeol presided over the “Second Economic Issue Inspection Meeting” on the subject of the semiconductor industry at the Presidential Office in Yongsan. At the meeting, President Yoon said, “Semiconductors are an area where all-out national warfare is taking place,” adding, “We have created a comprehensive semiconductor industry support program worth KRW 26 trillion, which includes financial, infrastructure, R&D, as well as support for small and medium-sized companies.” On the 9th, the first meeting was held on macroeconomic and financial market issues.
First of all, President Yoon said, “We will establish a 17 trillion won semiconductor financial support program at the Korea Development Bank,” adding, “As companies invest huge amounts of money in facilities such as new factories and line expansion, liquidity problems arise, and I think the Korea Development Bank’s support program will still solve many of these difficulties.”
As it is a semiconductor business that costs astronomical investment, it promotes investment through financial support.
Regarding the investment tax credit, which is scheduled to disappear this year, he explained, “The tax credit is a subsidy that the state refunds a certain percentage of R&D and facility investment,” adding, “We will extend it so that companies do not have difficulty in R&D and facility investment.”
Regarding the creation of a semiconductor megacluster, he said, “Time is the subsidy and the speed of problem response is the most important,” and promised, “The government and the public sector will be responsible for infrastructure such as electricity, water, and roads and create it at a rapid pace.”
“The most important thing in semiconductor production is to supply stable and high-quality electricity,” he said. “I hope you will also strengthen consultations with the National Assembly so that the National Electricity Network Special Act, which drastically shortens the construction period of transmission lines, can be passed by the National Assembly as soon as possible.”
In addition, it will create a 1 trillion won “semiconductor ecosystem fund” to support promising fabless (semiconductor design companies) and small manager companies to grow into global companies. President Yoon said, “We will push for a special support program for small and medium-sized semiconductor companies, including Fabless and small managers,” and added, “We will quickly build an empirical infrastructure that can be used jointly like mini-fabs to the level that companies want.”
President Yoon also refuted some claims that support for the semiconductor industry is a “tax cut for large companies.” “More than 70% of the semiconductor industry’s comprehensive support program will benefit small and medium-sized companies,” President Yoon said. “Semiconductors are for people’s livelihoods and support for the semiconductor industry is all for the people.”
The logic is that if investment in companies is expanded through tax support, the ecosystem of the semiconductor industry will be established, and companies will increase their profits and the people will enjoy more quality jobs. As people’s livelihoods revive and tax revenues eventually increase, a virtuous cycle of economy and industry is established.
It also ordered policies to strengthen the competitiveness of system semiconductors. The success or failure of the semiconductor industry is determined by system semiconductors, which account for two-thirds of the total market, and the market share of our fabless industry is still around 1%, and foundry is still far from leading companies, and ordered the Ministry of Trade, Industry and Energy to come up with breakthrough measures to strengthen the competitiveness of system semiconductors.
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