Semiconductor Special Act Passes National Assembly... Legal Basis Established for State Support of Clusters

Government Support for Infrastructure Such as Power, Water, and Roads
Special Provisions for Permits and Licenses Clearly Stipulated

On the 29th, during the plenary session held at the National Assembly, an amendment to the Partial Revision Bill of the National Assembly Act (alternative) was approved. 2026.1.29 Photo by Hyunmin Kim

A legal basis has been established for the government to support power, water, and roads for semiconductor clusters.

On January 29, the National Assembly held a plenary session and passed the enactment of the "Special Act on Strengthening Competitiveness and Support for the Semiconductor Industry" (Semiconductor Special Act), which includes these provisions.

The Semiconductor Special Act aims to systematically support the entire semiconductor industry supply chain, including memory and system semiconductors, design, manufacturing, packaging, as well as materials, components, and equipment. In particular, it designates semiconductor clusters as national strategic projects and allows the government and local governments to prioritize support for essential infrastructure required to establish these clusters.

Specifically, the Ministry of Trade, Industry and Energy may designate semiconductor clusters with consideration for balanced regional development, and the government and local governments may provide full or partial support for the installation costs of industrial infrastructure within the clusters, such as power, water, wastewater treatment facilities, and roads.

In addition, the bill includes a provision that, upon approval of a cluster development plan, all necessary permits and licenses required by relevant laws are deemed to have been granted, significantly reducing the administrative burden associated with large-scale semiconductor investments. The legal grounds for supporting companies and institutions located within the clusters have also been clearly defined.

Furthermore, the bill provides for the establishment of the "Special Committee for Strengthening Semiconductor Industry Competitiveness" under the President, the formulation of a "Basic Plan for Strengthening Semiconductor Industry Competitiveness," and the creation of a "Special Account for Strengthening Semiconductor Industry Competitiveness," enabling comprehensive and ongoing implementation of semiconductor policies. Legal support will also cover technology development and demonstration centers, fostering the foundry, system semiconductor, and materials, components, and equipment ecosystem, nurturing and attracting talent from abroad, and special provisions for regulations, permits, and preliminary feasibility studies.

The Semiconductor Special Act will be promulgated following government submission and approval by the Cabinet, and is expected to take effect as early as the third quarter of this year once subordinate regulations are established.

This content was produced with the assistance of AI translation services.