Written by Nick Wood
Through a combination of financial incentives, the government hopes to attract private sector investment totalling a massive 622 trillion won ($471 billion) between now and 2047, funding construction of the world's largest 'mega cluster' of chip factories and R&D facilities.
South Korea is already one of the largest producers of semiconductors. According to the Ministry of Trade, Industry and Energy (MOTIE), semiconductors have been its single biggest export for the last 11 years, accounting for 16% of exports and around 10% of GDP.
However, Yoon and his administration are aware that Korea is in a global race against other major chip-manufacturing countries like China, Japan and Taiwan, and others that have ambitions to join them, like the US and Germany.
Semiconductor supply chain independence is also of concern. At the moment, the government said around 30% of the chips used in Korean products today are produced on home soil, leaving it vulnerable to supply chain disruption.
