Industry Minister: New Semiconductor Complexes Needed Amid Market Expansion

South Korea's Minister of Trade, Industry and Energy, Kim Jeong-kwan, has indicated that current investment plans are inadequate to address the rapidly growing global semiconductor market. He emphasized the need for swift action to secure market leadership and suggested the creation of new semiconductor complexes.

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We must strive to quickly preempt the market as the semiconductor market is rapidly expanding. It is necessary to proceed with the planned investments as quickly as possible, but there is clearly a question of whether that alone will be sufficient. I think there is a need for new semiconductor complexes.

Speaking at a press briefing, Kim stated, "We must strive to quickly preempt the market as the semiconductor market is rapidly expanding." He added, "It is necessary to proceed with the planned investments as quickly as possible, but there is clearly a question of whether that alone will be sufficient." This suggests a need for new sites beyond the ongoing development of the Yongin semiconductor cluster, potentially in non-metropolitan areas.

While Kim avoided specific comments on potential new sites in regions like Jeonnam or Gwangju, citing ongoing discussions, he noted that companies themselves likely find current land insufficient, prompting their search for new locations. The minister also addressed the ongoing negotiations regarding the European Union's steel tariff quota system (TRQ).

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Companies also believe that the current land alone is not enough, so I know they have been making efforts to find new areas.

Kim highlighted that the government requested preferential consideration for South Korea in the allocation of duty-free quotas, emphasizing the contribution of Korean steel to the EU's automotive, machinery, and energy industries. He indicated a consensus that Korea's quota would not be reduced by the same percentage as the overall EU reduction, a significant achievement for the industry. The EU is set to implement a new steel import management system on July 1st, replacing the safeguard measures that expire on June 30th.

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There was some consensus that we would not apply the same reduction rate to our country.