S Korea plans extra $4.9bn help for chips amid US tariff anxiety

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Seoul: South Korea on Tuesday, citing “rising uncertainty” at US prices, announced plans to invest nearly $ 5 billion in the country’s semiconductor industry.

The country is a huge exporter to the United States and its powerhouse chip and auto industries will face a heavy hit from President Donald Trump’s threat of 25 % of levies. The concerns about the sector have surrendered the Seoul Listed shares of Samsung, the world’s largest memory chip maker, and the largest memory chip supplier SK Hanks.

The finance ministry said in a press release, “Now officials have taken steps to provide more cover for the economically important industry by announcing an additional $ 4.9 billion worth of $ 4.9 billion in 2026.

It has warned the “growing uncertainty” that US prices threats have called the sector a call for government assistance. The ministry said, “In order to promote a dynamic, private sector -led environmental system for semiconductor innovation and growth, the government will increase its investment in this sector from 26 trillion One ($ 18.2 billion) to 33 trillion one.”

Trump announced his global trade partners on April 2 at the rates of his ‘Liberation Day’, which includes 25 % on South Korean goods, before being suspended and suspended for 90 days before their implementation.

Nevertheless, “the duties targeting specific sectors such as semiconductor and pharmaceuticals are based on the horizon”, Finance Minister Choi Sang Mock said during a meeting.

“This era of grace offers an important window to strengthen the competitiveness of South Korean companies while intensifying global trade tensions,” he added. “The government plans to enhance cooperation for the semiconductor industry, in which 33 trillion One was allocated, with more than 4 trillion wins in financial costs, injection will be imposed during 2026,” he said. The package includes funding for the development of infrastructure, which includes underground transmission lines in the semiconductor clusters that are currently being constructed.

“The government will support investment with semidicular companies,” said Choi. This investment is part of a major modified supplementary budget proposal of 12 trillion One ($ 8.4 billion), and needs to be approved by the National Assembly.

Talking next week

The announcement of prices has shook the global markets, with investors not sure whether they are a negotiation tactic or a permanent US position. Trump has insisted that he will not back down until he reduces the US trade deficit or even eliminating – while simultaneously indicating that he is ready to negotiate.

Last year, the US trade deficit with South Korea was $ 66 billion. Seoul last week unveiled an emergency support package of $ 2 billion to help workers in the storm season.

According to officials, South Korea’s auto -related exports last year to the United States a total of $ 42.9 billion exports. Nevertheless, analysts said that for now, South Korea should not be more worried about its chips sector.

“Unlike automobiles, who are already subject to revenue, semiconductions are uniquely lacking in the United States,” said Kim Die Jong, a professor at Sizing University, Sijing University.

“Our companies are building a large -scale semiconductor plant in the United States, which is helpful in creating local job opportunities, which is likely to be emphasized,” Kim added.

“There will be a possibility of negotiations behind the scenes, and there is a possibility that they can conclude on a positive note. It is also possible that rates will be adjusted by item in the future.”

Trump spoke to South Korean Prime Minister Han Dick Soo last week, who was removed from office for trying to destroy civilian rule. US Treasury Secretary Scott Bissant said Monday that trade talks with South Korea will take place next week.