South Korea Boosts Economy With $8.4 Billion Budget, Allocates $23.25 Billion to Semiconductor Industry Amid U.S. Tariff Threats

40 posts • Grok (2)

Updated Apr 15, 2025, 03:22 PM

South Korea has announced a supplementary budget of 12 trillion won ($8.4 billion) to bolster its economy amidst threats from U.S. tariffs imposed by President Donald Trump. The budget, an increase of about 2 trillion won from the initially proposed 10 trillion won, aims to support industries affected by global trade turbulence and enhance domestic consumption. Deputy Prime Minister and Minister of Economy Choi Sang-mok emphasized the urgency of the budget's approval by the National Assembly. In response to the looming tariffs, South Korea has also unveiled a significant increase in financial support for its semiconductor industry, raising the package to 33 trillion won ($23.25 billion). This represents a 25% increase from the previous year's allocation of 26 trillion won, aimed at addressing uncertainties posed by U.S. trade policies and intensifying competition from China. The government plans to invest in the AI sector and disaster response as well. The semiconductor sector, which accounted for 21% of South Korea's exports in 2024 with a total of 141.9 billion dollars, is crucial to the country's economy. Exports to China and the U.S. were 46.6 billion dollars and 10.7 billion dollars respectively. The government plans to expand financial assistance, including low-cost loans and subsidies, to stimulate investment and support research and development in advanced chips. Key players like Samsung and SK Hynix are expected to benefit from these measures, which include funding for underground power lines to semiconductor clusters.

More breaking stories on DeepNewz — updated live.

#South Korea #Donald Trump #National Assembly #China #Samsung #SK Hynix

Associated Financial Markets

More financial news and market updates→

Related Prediction Markets

Will Trump remove majority of reciprocal tariffs before 90 day deadline?

Will Trump remove 10% blanket tariff in April?

Will Trump increase tariffs on Mexico before May?

•

View market suggestions→

Sources

news.tvchosun.com(5)reuters.com(5)news1.kr(3)asia.nikkei.com(2)

AlbertoRodNews

@AlbertoRodNews

South Korea increases aid to its semiconductor industry due to Trump tariffs https://t.co/nDlMZZkTp1

CNN Economia

@CNNEconomia

South Korea is preparing US$ 8.4 billion to deal with consequences of tariffs https://t.co/1WeOI7twvh

Arirang News

@arirangtvnews

Gov't proposes larger extra budget for disaster, trade response #Government #NationalAssembly #Supplementary_budget #정부 #국회 #추경안 #추경 #증액 #Arirang_News #아리랑뉴스 https://t.co/R6mlyWvMtW