Kim Jung-kwan said Korea must speed chip investment or risk losing share in a fast-growing memory market, arguing policy should prioritize reinvestment over broader profit redistribution.
South Korea's Minister of Trade, Industry and Energy Kim Jung-kwan said the country risks losing its semiconductor edge unless it helps chipmakers accelerate investment as global competition intensifies. He said the memory chip market is expected to reach about $1 trillion by the end of the decade and that speed will be decisive because chip customers rarely switch suppliers once products are adopted. Kim said South Korea currently holds about 65% of the global memory chip market, but warned that failing to meet rapidly rising demand could cost the country market share it may struggle to win back. He also argued against broader efforts to redistribute industry profits, saying policymakers should focus instead on helping companies reinvest their earnings. His comments add to earlier warnings that China's semiconductor advances, including progress in domestically produced DUV lithography equipment, are becoming a tangible threat as Seoul weighs stronger policy support for the sector.