Jinwook Jung's "Special Act on Strengthening and Supporting the Semiconductor Industry" Passes Plenary Session

Designation of Semiconductor Clusters and Establishment of Special Account
Creation of a Presidential Committee Underway
Foundation Laid for Semiconductor Infrastructure and Materials, Parts, and Equipment Support

Jinwook Jung

The alternative bill for the “Special Act on Strengthening Competitiveness and Supporting the Semiconductor Industry,” sponsored by Jinwook Jung, a National Assembly member from the Democratic Party of Korea (representing Gwangju Dongnam-gap), passed the final plenary session of the National Assembly on January 29.

The bill establishes the “Special Account for Strengthening Semiconductor Industry Competitiveness” as a temporary measure until 2036 to ensure stable support for the industry. Unlike single-year budgets, it provides a mid- to long-term financial foundation to comprehensively support ▲large-scale infrastructure development, ▲fostering of materials, parts, and equipment companies, ▲strengthening foundry competitiveness, and ▲R&D and demonstration projects.

Additionally, the bill stipulates that the government should expand semiconductor-specialized education and research infrastructure to meet workforce demand in the industry, and actively support professional talent development programs and industry-academia-research collaboration.

As the lead sponsor of the Semiconductor Special Act, Jinwook Jung played a key role throughout the legislative process, from the subcommittee and full committee of the Trade, Industry, Energy, SMEs, and Startups Committee to the final plenary session. Notably, when the Semiconductor Special Act was designated as a fast-track item, he spoke at the plenary session, strongly advocating for its swift passage.

Jinwook Jung stated, “This bill will serve as a practical turning point for fostering the semiconductor industry as a national strategic sector. Now that a legal basis has been established for the central government to take responsibility for addressing regional constraints such as infrastructure, talent, and location, I will ensure thorough follow-up measures so that regions outside the capital area can also build a competitive semiconductor ecosystem.”

This law was enacted to establish a comprehensive and systematic national support framework, enabling South Korea’s semiconductor industry to maintain continuous competitiveness and lead future markets amid the global supply chain reorganization and intensifying technological competition.

Under the law, the government will formulate a basic plan for the semiconductor industry every five years and establish a Presidential Committee for Strengthening Semiconductor Industry Competitiveness. This will allow for unified national strategies and the coordinated management of budget, location, technology, and workforce policies.

The law also enables the designation of “semiconductor clusters,” which are concentrated areas for the industry, and mandates that the government be responsible for installing and expanding key infrastructure such as power grids, water supply, and road networks. To expedite projects, the law includes special provisions such as exemptions from preliminary feasibility studies and streamlined permitting processes.

In particular, when designating clusters, the law allows for overlapping designations with “Opportunity Development Zones” under the Special Act on Decentralization and Balanced Regional Development and with “Research and Development Zones” under the Special Act on Fostering Research and Development Zones. This aims to alleviate overconcentration in the capital area and foster a regionally centered semiconductor ecosystem.

Jinwook Jung added, “Passing the law is not the end; the key now is to revise subordinate regulations such as enforcement decrees and rules, ensure the practical operation of the special account, and activate the Presidential Committee for Strengthening Semiconductor Industry Competitiveness. Together with the government, I will develop effective implementation measures and, as a member of the Trade, Industry, Energy, SMEs, and Startups Committee, take full responsibility to strengthen semiconductor competitiveness and promote balanced regional development.”

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