April 17, 2024

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The government will seek to set aside more than 1 trillion won ($847 million) in next year’s state budget to support companies producing parts and materials used in chips amid Japan’s export curbs, a lawmaker said on July 25.

In a related move, the government plans to unveil a set of measures to help enhance competitiveness in the chipmaking and key material industries in the coming days, according to Rep. Cho Jeong-sik, policy chief of the ruling Democratic Party.

His remarks came at a consultative meeting on state budget spending between the government and the ruling party held at the National Assembly.

South Korea spent 65.4 percent of its government budget in the first half in a bid to cope with an economic slowdown, larger than its initial target of 61 percent.

“Based on the first-half record, the ruling party and the government agreed to keep the trend of expansionary fiscal spending in the second half,” Cho said.

Japan is reviewing whether to remove Korea from a whitelist of trusted buyers following its imposition of export restrictions of key materials vital to making chips and displays earlier this month.

By Ram Garikipati and newswires (ram@heraldcorp.com)