The government has decided to sharply increase its support for the semiconductor industry to 33 trillion won, or about 23 billion U.S. dollars, from 26 trillion won.

Finance Minister Choi Sang-mok announced the decision Tuesday during a meeting with economy-related ministers in Seoul.

With a 90-day pause on reciprocal tariffs from the U.S. government and with sector-specific tariffs on semiconductors and pharmaceuticals looming, Choi said now is the time to support South Korean companies facing a global trade war. 

The minister then said the government will increase its support for the chip industry to 33 trillion won and inject more than four trillion won by 2026.
 
He said the government will provide active financial support for the infrastructure of the chip industry, while subsidizing investments from small and midsize companies that produce advanced materials and components.