SEOUL, Sept. 27 (Korea Bizwire) — South Korea’s finance minister said Wednesday the government will spare no effort to support the country’s chip industry through tax cuts and other financial support amid the sector’s downturn.
“The chip sector is the strategic and core industry for the South Korean economy, responsible for 18.9 percent of exports and 41.5 percent of the manufacturing investment in 2022,” Finance Minister Choo Kyung-ho said during his visit to a production line of SK hynix Inc. in southern Seoul.
During the visit, Choo said the significance of the chip industry will increase down the road despite the recent tumble, amid the boom of artificial intelligence services and the acceleration of digital transition.
“Amid the circumstances, SK hynix’s plan to expand production facilities for high bandwidth memory products will significantly contribute to securing a leading position in the next-generation semiconductor market,” he added.
Choo noted that the government will continue to support such efforts, including expanding tax cuts for investment in the sector.
The country also allocated 2.8 trillion won (US$2 billion) in next year’s budget to back the chip industry, the finance minister added.