Korea's Special Semiconductor Act Takes Effect August 11, with Cluster Infrastructure Eligible for up to 100% Fiscal Support

Odaily News: The Enforcement Decree of South Korea's "Special Act on Strengthening the Semiconductor Industry Competitiveness and Support" was reviewed and approved by the State Council on August 4, and will officially take effect on August 11. The Act is being advanced under a presidential-level mechanism, detailing the composition of a special committee, procedures for designating semiconductor clusters, support for talent development, and the operation of a dedicated accounting system.

According to the Enforcement Decree, applicants seeking designation as a semiconductor cluster must submit a construction plan that includes basic objectives, development direction, name, location, area, current local industry and infrastructure status, as well as talent cultivation and research infrastructure plans. Non-capital regions will receive priority consideration in cluster designation.

Construction and operation costs for industrial infrastructure required by semiconductor clusters may be covered by the national and local governments for 50% to 100% of the total project cost. Among these, facilities for redundancy (dualization), supply chain stabilization, and industrial security-related infrastructure are eligible for full support.

The Enforcement Decree also stipulates that priority support may be provided for employment linkage and retraining of local professionals in non-capital region semiconductor companies, and specifies the criteria and procedures for designating institutions dedicated to cultivating semiconductor industry professionals. South Korea's Minister of Trade, Industry and Energy, Kim Jung-kwan, stated that the ministry will cooperate with relevant departments to advance the key policy tasks stipulated by the law.