- Korean manufacturing plans 122 trillion won investment driven by semiconductors.
- Semiconductor and automotive sectors boost advanced memory and EV production.
- Industry seeks subsidies, financing support, and reduced industrial electricity costs.
The industry ministry reported that ten significant manufacturing sectors are projected to invest a total of 122 trillion won in facilities this year, driven by the semiconductor industry's growth and the automotive industry's effort to boost electric vehicle (EV) production.
The number indicates a rise from the original plans of 119 trillion won disclosed earlier this year. The most recent number for anticipated manufacturing investment was revealed during a strategy meeting on investment organized by the Ministry of Trade, Industry, and Resources.
The ministry noted that domestic investment plans in South Korea's manufacturing sectors increased, even with heightened overseas investment interest driven by U.S. tariffs and global supply chain changes, supported by investments in the semiconductor, automotive, and battery sectors.
The semiconductor sector has been increasing investments in advanced memory types, such as high-bandwidth memory (HBM), to meet the rising global demand for artificial intelligence (AI) chips, while the automotive sector focuses its investments on electric vehicles (EVs).
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During the meeting, manufacturing firms requested that the government promptly implement EV subsidies, enhance policy financing, and reduce electricity costs for industrial purposes to support their ongoing domestic investment growth, as reported by the ministry.
"Although overseas investment, especially in the United States, has become unavoidable following the conclusion of the Korea-U.S. tariff negotiations, domestic investment still remains important to prevent the hollowing-out of our manufacturing base," Industry Minister Kim Jung-kwan said.