On June 4, 2025, following his official inauguration, President Lee Jae-myung of South Korea introduced a sweeping economic initiative centered on strengthening the nation’s technology infrastructure. His administration’s focus is set firmly on advancing next-generation industries such as smart computing and semiconductor manufacturing, with the goal of fostering innovation, boosting employment, and narrowing regional economic disparities.
₩100 Trillion Mobilized for Emerging Technologies
A key feature of the new administration’s strategy is a ₩100 trillion investment framework aimed at expanding Korea’s capabilities in advanced digital technologies. The funding will be sourced through a national investment fund that invites participation from corporations, pension institutions, individual investors, and government entities.
To stimulate broader involvement, the government will offer income and corporate tax incentives to participants. The initiative is designed to support developments in data processing, computing infrastructure, and software applications—forming a comprehensive ecosystem for technological progress.
Digital Society Development and National Infrastructure
To encourage more widespread adoption of intelligent tools, the government has introduced a nationwide program focused on increasing public access to and familiarity with digital systems. This includes the development of a localized large-scale language model (LLM) that will be partially open to public use.
The plan also calls for classifying high-capacity computing centers as part of the country’s strategic infrastructure network. This move is expected to drive investment into data storage and processing facilities, creating a more robust backbone for future applications.
Semiconductor Sector Gains Further Tax Support
In addition to the digital sector, South Korea’s globally significant semiconductor industry is set to benefit from new production-related tax benefits. Domestic manufacturers will be eligible for tax credits of up to 10% on chips produced and sold within the country.
With chip exports reaching $141.9 billion in 2024—a 43.9% year-over-year increase—these incentives are likely to further strengthen the competitive positioning of key players in the market. Industry leaders are expected to increase investments in production capacity and R&D in response to the favorable tax environment.
Conclusion: Long-Term Commitment to Strategic Innovation
South Korea’s new economic roadmap reflects a strong commitment to long-term industrial modernization. By linking tax policy, infrastructure upgrades, and public participation, the administration is aiming to secure a more resilient and forward-looking economic foundation. The coordinated approach across emerging technology and core manufacturing is poised to elevate the country’s role in global supply chains and digital innovation.
Futuretech Components: Supporting the Next Generation of Technology
