South Korea unveils $30.6 billion chip support amid US tariff uncertainty

South Korea has announced an increase in its support package for the semiconductor industry to 33 trillion won ($23.25 billion), reflecting a 25% rise from last year's 26 trillion won. This decision is aimed at bolstering domestic firms against rising competition from China and impending U.S. tariffs, as President Trump indicated he would soon announce tariff rates on imported semiconductors. The financial assistance for the semiconductor sector will be expanded to 20 trillion won from 17 trillion won, which includes funding for infrastructure and training programs. South Korea, home to major chipmakers like Samsung and SK Hynix, relies heavily on semiconductor exports, which accounted for 21% of its total exports in 2024. The government is also taking steps to consult with the U.S. to mitigate potential negative impacts from its investigations into semiconductor imports. This announcement follows recent emergency support measures for the auto sector in light of similar tariff concerns.