The South Korean government is establishing a new director-level organization dedicated to overseeing semiconductor megaprojects and the implementation of special semiconductor legislation. A new department focused on industrial and trade cooperation with India will also be created to enhance the competitiveness of the semiconductor industry and support entry into emerging markets.
The Ministry of Trade, Industry and Energy and the Ministry of the Interior and Safety announced on October 13 that a revised organizational structure for the Ministry of Trade, Industry and Energy and its affiliated agencies was approved during a Cabinet meeting. The revised structure will take effect on October 20.
As part of this reorganization, the Ministry will establish the 'Semiconductor Innovation Growth Support Division' at the director level. Additionally, a new 'India Trade Cooperation Division' will be launched to systematically advance economic cooperation tasks between the two countries that were expanded following the South Korea-India summit in April. This reorganization will add one director-level organization and two division-level organizations, increasing the workforce by 20 personnel.
The Semiconductor Innovation Growth Support Division will consist of three departments: the Semiconductor Policy Department, the Advanced Semiconductor Department, and the Semiconductor Ecosystem Department. The existing Semiconductor Department will be restructured into the Semiconductor Policy Department, while the Advanced Semiconductor Department will be newly established. The Semiconductor Ecosystem Department will also be created to enhance support for materials, parts, and equipment companies and to foster the industrial ecosystem.
The support division will oversee semiconductor industry policy planning, strengthen the competitiveness of advanced semiconductor technologies, and support the industrial ecosystem. It will also be responsible for new legal tasks mandated by the special semiconductor law. This includes establishing a basic plan to enhance semiconductor industry competitiveness, operating a special committee for semiconductor industry competitiveness enhancement, and designating and supporting semiconductor clusters.
The division will also support corporate investments in major megaprojects, such as the southwestern semiconductor cluster. On the previous day, Minister of Trade, Industry and Energy Kim Jeong-kwan visited the Gwangju military airport to inspect the site development and power and water supply plans for the 800 trillion won southwestern semiconductor megaproject. The establishment of this dedicated division is seen as a measure to strengthen the central government's dedicated promotion system to ensure that large-scale investment plans translate into actual industrial complex development and corporate investments.
A dedicated department for industrial and trade cooperation with India will also be established. The India Trade Cooperation Division is being set up to systematically advance the expanded economic cooperation tasks between the two countries following the summit. At that time, the two nations agreed to establish an industrial cooperation committee, resume negotiations to improve the Comprehensive Economic Partnership Agreement (CEPA), and expand cooperation in energy and resource security.
The India Trade Cooperation Division will support companies entering the Indian market and expanding local operations, as well as identify new investment and industrial cooperation projects. It will also strengthen government cooperation channels and address challenges faced by local businesses.
On October 8, the Ministry discussed plans for creating a dedicated industrial complex for South Korean companies in India during the 60th Trade Promotion Committee meeting, which included relevant ministries. The establishment of this dedicated division will provide an administrative framework to oversee ongoing cooperation projects, such as industrial complex development and CEPA improvement negotiations.
Additionally, the existing Coal Industry Department will be converted into a Coal Industry Team. The Advanced Military-Industrial Cooperation Department will be transferred from the Manufacturing Industry Policy Bureau to the Advanced Industry Policy Bureau.
Minister Kim Jeong-kwan stated, "Semiconductors, which are essential to the supply chain of all industries, account for half of South Korea's exports and are a core industry for the national economy. Amid fierce competition for semiconductor supremacy, we will support corporate investments and technological innovation through the Semiconductor Innovation Growth Support Division to further solidify our competitiveness." He added, "We will leverage the momentum for cooperation established during the summit through the India Trade Cooperation Division to translate it into tangible results for our companies."
* This article has been translated by AI.
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