On June 19, Ko Dong-jin, a lawmaker from the People Power Party and former Samsung Electronics president, tabled a special bill aimed at establishing and supporting a government-level semiconductor industry strategy. This is the first-ever law focused specifically on semiconductors.

On the June 19, Ko submitted to the National Assembly the “Special Act on Enhancing the Competitiveness of the Semiconductor Industry,” which includes the establishment of a “Presidential Semiconductor Industry Competitiveness Enhancement Committee.”

The proposed legislation aims to centralize semiconductor industry regulations through this committee and introduces a fast track for expedited permits. The measures include rapid construction of electric and water infrastructure under government responsibility, a legal plan to enhance semiconductor competitiveness every five years, designation and development of semiconductor clusters, and subsidy support for production facilities and infrastructure.

Particularly, it mandates that both national and local governments proactively install industry infrastructure facilities such as electricity and water supply to ensure smooth operation of semiconductor clusters and also bear the associated costs. For a stable electricity supply, the government is required to mandatorily include national power network installation and expansion for the semiconductor industry in the “Basic Plan for Electricity Supply and Demand.”

Additional provisions in the bill include the government’s efforts to attract and develop domestic and international talents in semiconductor design and R&D, as well as the establishment of a “National Semiconductor Industry Promotion Center” and a “Special Account for Semiconductor Industry” to effectively push forward necessary R&D and support projects.

Regarding tax support, the legislation specifies that costs for R&D and personnel development in the semiconductor industry, as well as investments in commercialization and R&D facilities and equipment, should be indefinitely deductible from business income or corporate taxes.

The semiconductor market has historically been structured around specialization, with the U.S. focusing on intellectual property and fabless (semiconductor design) sectors, Japan on materials, parts, and equipment, and Korea and Taiwan on foundries (semiconductor contract manufacturing). However, as countries recently plunge into a semiconductor supremacy battle with astronomical subsidies, concerns about the position of our nation’s semiconductor industry continue to be raised.

Lawmaker Ko stressed, “In the semiconductor industry, speed and timing are of the essence. It’s time for all sectors—large corporations, medium-sized enterprises, small and medium-sized businesses—and the government to join as ‘one team’ and launch an all-out war on this critical industry.” He further stated, “Through this special law, I hope our country can establish semiconductor sovereignty and continue to evolve into an economic powerhouse.”