South Korean President Yoon Suk Yeol recently announced a 26 trillion won ($19 billion) national support program to enhance the country's semiconductor industry, aiming to bolster its competitiveness on the global stage. The comprehensive package encompasses financial initiatives, research and development strategies, and infrastructure assistance, though it fell short of providing the direct subsidies requested by industry players to compete with international counterparts. President Yoon emphasized the significance of semiconductors for the national economy and stressed that more than 70 percent of the program's beneficiaries would be small and medium enterprises. The central component of the support package is a 17 trillion won semiconductor financial loan program to aid chipmakers' facility investments, with the state-run Korea Development Bank offering loans at low interest rates. Additionally, a 1.1 trillion won chip fund will be established to support the growth of fabless firms, as well as parts and equipment firms. The government is also planning to extend tax cut benefits for chipmakers to facilitate large-scale investment in the Yongin mega cluster project, while committing to expedite the construction of essential infrastructure such as electricity, waterworks, and roads. Finance Minister and Deputy Prime Minister Choi Sang-mok clarified that the government's approach involves providing tax benefits instead of direct subsidies, highlighting that countries with established chip manufacturing capabilities like Korea and Taiwan typically do not offer direct subsidies. Furthermore, the government will increase its investment in research and development to over 5 trillion won in the next three years and intends to release the specific details of the support package in June, along with a strategy for fostering the logic chip sector in August. President Yoon emphasized the importance of the logic chip market and urged ministers to provide comprehensive support for its development.