South Korea to launch 5 trillion won chip fund for clusters

South Korea plans to launch a new 5 trillion won ($3.52 billion) semiconductor fund aimed at promising chip materials, components and fabless companies, part of a broader push to build out domestic chip clusters. Presidential Chief of Staff Kang Hoon-sik said on Monday the government will also provide 5 trillion won in trade finance (funding that supports cross-border commerce) for export-oriented suppliers and seek passage this year of a Mega Special Zone Act to speed permits, environmental reviews and infrastructure development. The plan includes securing 650,000 tonnes of water supply by 2030 for semiconductor projects in the Honam region and delivering a planned 14.7 gigawatts of power by 2041 to the Yongin semiconductor cluster.

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