September 28, 2023
South Korea’s finance minister has pledged unwavering support for the nation’s chip industry, aiming to provide assistance through tax reductions and other financial measures amidst the sector’s current challenges.
Finance Minister Choo Kyung-ho highlighted the chip sector’s pivotal role in the South Korean economy, accounting for 18.9 percent of exports and 41.5 percent of manufacturing investment in 2022. He made these remarks during a visit to SK hynix Inc.’s production line in southern Seoul.
Choo emphasized that, despite recent setbacks, the significance of the chip industry is set to grow, driven by the surge in demand for artificial intelligence services and the rapid pace of digital transformation.
In light of these circumstances, he commended SK hynix’s plans to expand its production facilities for high bandwidth memory products, recognizing their potential to bolster South Korea’s position in the next-generation semiconductor market.
The government, Choo affirmed, will maintain its support for such endeavors, including the extension of tax incentives to encourage investments in the sector.
Furthermore, the South Korean government has allocated 2.8 trillion won (approximately US$2 billion) in next year’s budget to bolster the chip industry, demonstrating its commitment to the sector’s growth and stability.
Source: Yonhap News Agency
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