South Korea plans to launch a dedicated semiconductor policy office to accelerate 800 trillion won in investments by Samsung Electronics and SK hynix, coordinate chip infrastructure and strengthen industry competitiveness.
South Korea will establish a dedicated semiconductor policy office next week to accelerate major chip investments and strengthen the country’s competitiveness in the global semiconductor industry. The decision follows Cabinet approval of an administrative reorganisation, as the United States, China and Japan intensify efforts to expand advanced chip manufacturing.
The director-general-level office will operate under the Ministry of Trade, Industry and Resources and oversee semiconductor policies, coordinate large-scale investments and implement new legislation supporting the industry. Tentatively named the Semiconductor Innovation and Growth Support Office, it will bring together three divisions focused on semiconductor policy, advanced-chip competitiveness and the broader supply chain, including materials, components and equipment.
Also Read: Why Packaging for Semicon & Medtech Signals Global Trade Trends
A major priority will be supporting semiconductor production clusters backed by Samsung Electronics and SK hynix. The two companies are expected to invest a combined 800 trillion won, approximately USD 595.5 billion, in manufacturing facilities across the Seoul metropolitan area and southwestern South Korea. The investments form part of the country's broader strategy to expand production capacity and strengthen its position in the global semiconductor market.
The new office will coordinate infrastructure development for major semiconductor complexes, addressing potential delays associated with electricity, water supplies, transportation and environmental approvals. Particular attention will be given to the planned semiconductor cluster in southwestern Korea, supporting the government's efforts to diversify manufacturing beyond traditional production hubs near Seoul.
The office will also oversee implementation of the Special Act on Strengthening and Supporting the Competitiveness of the Semiconductor Industry. Its responsibilities will include preparing a national competitiveness strategy, operating a high-level policy committee and designating strategic semiconductor clusters. The legislation provides a framework for investment incentives, infrastructure development, research and development, workforce training and supply-chain security.
Industry Minister Kim Jung-kwan said semiconductors are essential to industries including artificial intelligence, automobiles and home appliances. He added that the new office would support corporate investment and technological innovation while improving South Korea's competitiveness.
Also Read: Emerging Tech and Innovation
Separately, the ministry will establish an India Trade Cooperation Division to strengthen economic ties following a bilateral summit in April 2026. The division will identify investment opportunities, assist Korean companies operating in India and coordinate industrial cooperation, including efforts to improve the Comprehensive Economic Partnership Agreement and strengthen energy and resource security.
The initiatives reflect South Korea's efforts to streamline industrial policymaking, accelerate strategic investments and expand international economic partnerships.