April 16, 2025 /SemiMedia/ — South Korea said on April 15 it would raise its semiconductor industry support package to 33 trillion won ($23.25 billion), up from a previously announced 26 trillion won in 2024, in a bid to strengthen its competitiveness against Chinese rivals and respond to growing policy uncertainty in the United States.

In a joint statement issued by several ministries including the Ministry of Trade, South Korea also said it would increase financial support for the chip sector from 17 trillion won to 20 trillion won to help local companies cope with rising costs in global markets.

Home to memory chip giants Samsung Electronics and SK Hynix, South Korea sees semiconductors as a critical export pillar. In 2024, the country’s chip exports reached $141.9 billion, accounting for 21% of total exports, with $46.6 billion shipped to China and $10.7 billion to the U.S., according to government data.

Former U.S. President Donald Trump said on Sunday he would announce new tariffs on imported semiconductors next week, while adding that certain companies may be treated flexibly. South Korea’s Finance Minister Choi Sang-mok said the government would actively engage with the U.S. to minimize the potential impact of Section 232 investigations on the local chip and biopharma industries.

Last week, South Korea also introduced emergency measures for its auto sector to mitigate the impact of possible U.S. tariffs, including financial support, tax relief, and subsidies to boost domestic demand. The government pledged to expand overseas markets and continue negotiations with the United States.