The South Korean government will provide a total of 6 trillion won (approximately $5 billion) over four years to develop the Honam semiconductor cluster, starting next year.
Minister of Trade, Industry and Energy Kim Jeong-kwan reported on November 9 to the National Assembly's Committee on Trade, Industry, Resources, and Small and Medium Enterprises about the plans for integrated financial support for the southwestern semiconductor cluster and special subsidies for growth engines.
As part of the initiative, the government will allocate 1.5 trillion won annually from 2027 to 2030, linked to financial support for the administrative integration of Gwangju and Jeonnam.
This announcement follows the approval of the exemption from preliminary feasibility studies during a Cabinet meeting on August 25, with specific budget items for the upcoming year outlined in the recent National Assembly report.
For the next year, 1 trillion won will be allocated for the establishment and operation of the semiconductor cluster and industrial infrastructure, accounting for 66.7% of the total budget.
Additionally, 200 billion won will support resident companies and institutions, while another 200 billion won will be dedicated to technology development and nurturing the industrial ecosystem.
Funding for training and securing specialized personnel will receive 70 billion won, and 30 billion won will be allocated for semiconductor industry research, analysis, and support initiatives.
However, these allocations are provisional and may be adjusted based on the establishment of detailed project plans.
The financial support will be linked to the construction of semiconductor production facilities centered around the Gwangju military airport area.
The government and private sector aim to establish four semiconductor production facilities based on approximately 800 trillion won in private investment, with the goal of commencing mass production by 2030.
The government plans to support land development, securing power and water resources, and fostering companies in materials, parts, and equipment, as well as research and development, to build a semiconductor industrial ecosystem in the Honam region.
* This article has been translated by AI.
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