[2025 Economic Policy] Actively Responding to Increased US Ship MRO Demand and Providing 14 Trillion Policy Financing for Semiconductors

Incorporating 'Strengthening Industrial Competitiveness' into the 2025 Economic Policy Direction
Enhancing Customized Support for Key Industries such as Semiconductors, Shipbuilding, and Automobiles

The government is strengthening tailored support for key industries to leap forward as a central nation in the global industrial ecosystem. In response to the expanding demand for ship maintenance and repair (MRO) in the U.S. and other countries, it has decided to provide more than 14 trillion won in policy financing this year alone to secure leadership in the semiconductor competition.

On the 2nd, the government held a joint briefing with related ministries at the Government Complex Seoul and announced the '2025 Economic Policy Direction' containing these details.

In response to intensifying global industrial competition, the government will strengthen customized support for key industries. For shipbuilding, it will actively respond to new demands such as MRO while supporting research and development (R&D), workforce, and strengthening materials, parts, and equipment (SoBuJang). To meet the expanding MRO demand in the U.S. and other countries, cooperation in the military ship and commercial ship sectors will be enhanced, and a 'Korea-U.S. Cooperation Package' will be prepared in the first quarter of this year to promote workforce exchange and smart yard technology sharing. Additionally, preferential financing will be provided to activate MRO orders for military ships and others.

The government will support R&D for core technologies such as eco-friendly ship cargo holds and zero-carbon propulsion ships, and from this year until 2028, it will invest 95 billion won to promote the 'Ammonia Bunkering Ship Equipment Demonstration.' The special allowance for foreign workforce under the E-7 visa in the shipbuilding industry, which permits up to 30% of domestic workers, will be made permanent, and a 'Shipbuilding Industry Materials, Parts, and Equipment Strengthening Plan,' including localization of core components, will be prepared by the first half of this year.

For semiconductors, support will accelerate to secure leadership in the hegemonic competition. The government will cover more than half of the corporate burden for undergrounding power transmission lines in the 1.8 trillion won-scale semiconductor clusters in Yongin and Pyeongtaek, and raise the current 50 billion won limit for infrastructure support in specialized complexes. The tax credit rate for national strategic technology investments by semiconductor companies will be increased by 5 percentage points. Policy financing support will also expand. This year alone, more than 14 trillion won in policy financing will be provided, including 4.25 trillion won in low-interest loans from the Korea Development Bank at a minimum interest rate in the low 2% range, comparable to government bond rates.

For secondary batteries, the government will establish and operate a trade response system toward the U.S. to minimize uncertainties in external conditions such as the reduction of benefits from the U.S. Inflation Reduction Act (IRA), and promote the internalization and diversification of battery materials and minerals. In response to global market restructuring such as oversupply and strengthened carbon neutrality, the government will prepare response plans to enhance competitiveness in the steel industry through high value-added and low-carbon technology development and digital transformation.

For automobiles, scenario response strategies will be established in response to changes in the trade environment such as the imposition of general tariffs and strengthened export regulations. To recover demand, the government will expand electric and hydrogen vehicle charging infrastructure to improve convenience for eco-friendly vehicles, and to respond to global autonomous driving competition, a 'Pan-Ministerial Autonomous Driving Technology Roadmap' will be established in the first half of this year. Petrochemicals, which are struggling with global oversupply, will reduce the business restructuring review period to a maximum of 90 days and respond to facility rationalization by designating 'Preemptive Industrial Crisis Response Areas' in the first half of this year.