Top-Level Regulatory Exceptions for Semiconductor Mega-Zones... Government to Support 957 Trillion Won in Investment

[Financial News] The government has once again pledged full-scale institutional and fiscal support to speed up three major mega-projects that are expected to attract about 957 trillion won in private investment. Its goal is to enact the Mega-Zone Act and revise the Special Act on Semiconductors within this year, giving semiconductor companies "the highest level of regulatory exceptions." It also plans to support the full cycle of advanced fabs and materials, parts and equipment, while pushing ahead with efforts to secure AI, power and defense semiconductors.
Kim Jung-kwan, Minister of Trade, Industry and Energy, said at the 2026 National Fiscal Strategy Meeting held at Cheong Wa Dae on the 13th, "The government is immediately launching a public-private joint review meeting and is swiftly taking follow-up measures, including finalizing the site of the Gwangju Military Airport."
The core of Kim's strategy for promoting the semiconductor mega-zone is government fiscal and administrative support.
The government plans to build a bridge so that private-sector semiconductor investment plans can be carried out quickly by enacting the Mega-Zone Act and revising the Special Act on Semiconductors within the year.
Kim said, "We will enact the Mega-Zone Act within this year and grant semiconductor investment companies the highest level of regulatory exceptions." He added, "We will prepare a comprehensive support package that includes tax incentives, investment promotion and infrastructure." He also said, "We will transform the existing Special Act on Semiconductors from a broad framework that supports the industry as a whole into a powerful implementation-oriented special law that is now responsible for carrying out large-scale national projects such as mega-projects."
The government will also create an environment in which finished semiconductors and semiconductor materials, parts and equipment can grow. It will also move ahead with the development of AI, power and defense semiconductors, which are expected to serve as a catalyst for growth in advanced industries.
Kim said, "We will provide focused support for large-scale R&D worth 1 trillion won to secure on-device AI chips as soon as possible." He added, "We will also fully support the development of next-generation compound power semiconductors that can address the surging power demand across all industries, including energy and electric vehicles. In line with the Defense Semiconductor Support Act, which is scheduled for December, we will also prepare a full-cycle support plan for defense semiconductors."
The industry ministry also signaled semiconductor investment and fiscal support on the scale of major competitors such as the United States, Japan and China. According to MOTIE, China is providing 152 trillion won in fiscal support, Japan 85 trillion won and the United States 80 trillion won.
Kim said, "We will mobilize every available tool, including budgets, funds and policy finance, to boldly support our companies so they can win in global competition."
jhyuk@fnnews.com Kim Jun-hyeok Reporter