S Korea president announces record $19 bn plan to boost chip industry

South Korean President Yoon Suk Yeol on Thursday announced a record $19-billion-dollar support plan for the country's crucial semiconductor industry.

South Korea is home to the world's top memory chipmakers Samsung Electronics and SK hynix and last year pledged to build the world's largest chip centre using $456 billion of private investment as it seeks an edge in the global industry.

"We have created a comprehensive support programme for the semiconductor industry worth 26 trillion Korean won, which encompasses financial, infrastructure, research and development, as well as support for small and medium-sized companies," he said, according to a statement from his office.

The package includes a $7 billion investment announced earlier this month.

Yoon also said Seoul would extend tax benefits for chip investments, in hopes of boosting employment and attracting more talent to the industry.

The country is also building a "mega chip cluster" just outside Seoul, which the government claims will be the world's largest semiconductor-making complex and create millions of jobs.

"As you all know, semiconductors are a field of national all-out war," Yoon said.

"Winning or losing depends on who makes the state-of-the-art semiconductors with high information processing capabilities first. The state must provide support for semiconductors so that they do not lag behind competitors," he added.

With the new package, Yoon said there would be a "new semiconductor financial support programme worth 17 trillion won" run through the Korea Development Bank, to allow companies to make crucial new investments.

"As companies invest enormous amounts of money in facilities such as new factories and line expansions, liquidity...