Science & Technology

South Korea Kicks Off $19 Billion of Chip Loans

South Korea will start providing financial aid to chip manufacturers in July.

South Korea Kicks Off $19 Billion of Chip Loans

Seoul will allocate 26 trillion won ($19 billion) to the mentioned goals. These funds will be used to develop the semiconductor industry, which the South Korean authorities perceive as critically important. It is worth noting that this industry is uniquely necessary for the context of the current technological reality, in which chips are what can be described as the main component element of advanced products.

Seoul will begin implementing its plans to support the development of the semiconductor industry with an 18 trillion won package of measures, which includes preferential loans and investment capital. Starting next month, companies will be able to use a loan program worth 17 trillion won at the lowest interest rates on the market. A statement of the relevant content was released by the Ministry of Finance and Economy of South Korea on Wednesday, June 26.

The Asian government will also help set up two funds totaling 1.1 trillion won, the smaller of which will pool 300 billion won by next year, and begin investing in local manufacturers of equipment and materials for the production of chips in July.

It is worth noting that currently, countries such as the United States and China are also sending government aid to the semiconductor industry. This global trend is largely related to the current tension in the space of geopolitical relations, which disrupts the global supply chain.

Samsung Electronics Co. and SK Hynix Inc. technologies are helping make South Korea the world’s largest manufacturer of memory chips.

Currently, the government of the Asian country is investing $470 billion in the construction of a semiconductor megacluster outside Seoul.

As we have reported earlier, South Korea to Invest in AI.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.