Dedicated Semiconductor Megaproject Office to Launch... MOTIE Bolsters Organization and Staffing

'Semiconductor Innovation and Growth Support Group'
Comprises three divisions: policy, advanced semiconductors, and ecosystem
Supports megaprojects, including the southwestern region cluster
Establishes India Trade and Cooperation Division to fol

The Ministry of Trade, Industry and Energy will establish a director-general-level organization dedicated to major semiconductor projects, including the semiconductor cluster in the southwestern region. The plan is to bring together in one organization the new statutory responsibilities created under the Special Act on Semiconductors and semiconductor industry policies, enabling the government to support corporate investment and cluster development more quickly.

The Ministry of Trade, Industry and Energy said on October 13 that the Cabinet had approved a partial amendment to the decree on the organization of the ministry and its affiliated agencies. The amended decree will take effect on October 20.

The key change is the establishment of the Semiconductor Innovation and Growth Support Task Force, a director-general-level organization. This follows the creation of the Office of Industry and Resource Security and the Office of Industrial AI Policy in December 2025, further strengthening the organization and staffing for the semiconductor sector.

The task force will consist of three divisions: the Semiconductor Policy Division, the Advanced Semiconductor Division, and the Semiconductor Ecosystem Division. Its responsibilities will include planning semiconductor policies, strengthening the competitiveness of advanced semiconductors, and supporting the industry ecosystem, including materials, parts, and equipment.

In particular, the task force will support major semiconductor megaprojects, including the semiconductor cluster in the southwestern region. Under the Special Act on Semiconductors, it will also draw up a master plan to strengthen the competitiveness of the semiconductor industry and operate the Special Committee for Strengthening Semiconductor Industry Competitiveness. Statutory responsibilities newly established under the act, such as designating and supporting semiconductor clusters, will also be consolidated within the task force.

The government established a separate director-general-level organization because a succession of large-scale semiconductor investment projects has increased the need for coordination across government, from building infrastructure such as sites, power, and water supplies to supporting corporate investment. Given that semiconductor clusters require large amounts of electricity and water, numerous issues need to be coordinated among relevant ministries, local governments, and companies between site selection and the start of factory operations.

Meanwhile, the ministry will also establish the India Trade and Cooperation Division, dedicated to economic cooperation between Korea and India. The move follows the expansion of industrial and trade cooperation initiatives between the two countries in the wake of their summit in April 2026.

India has continued to post economic growth in the 7% range and is emerging as a global production and consumption hub. At the summit, the two countries agreed to establish the Korea-India Industrial Cooperation Committee, resume negotiations to improve the Comprehensive Economic Partnership Agreement (CEPA), and expand cooperation in energy and resource security.

The India Trade and Cooperation Division will serve as the dedicated channel for industrial and trade cooperation between the two countries. It will identify new cooperation projects in industry and investment and support Korean companies entering the Indian market and expanding their local operations. It will also work to resolve business difficulties and strengthen government-to-government cooperation channels.

Minister of Trade, Industry and Energy Kim Jung-kwan said, "Semiconductors are an essential part of the supply chain for every industry, including artificial intelligence (AI), automobiles, and home appliances, and are a key industry for the national economy, accounting for about 50% of Korea's exports. Through the Semiconductor Innovation and Growth Support Task Force, we will support companies' investment and technological innovation, including in megaprojects, and further strengthen Korea's semiconductor competitiveness." He added, "With the India Trade and Cooperation Division at the center, we will turn the momentum for cooperation established at the summit into tangible results for Korean companies."

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