South Korean Industry Minister Urges Faster Chip Investment Against China

South Korean Industry Minister Kim Jung-kwan warned that South Korea risks losing its global semiconductor lead if the government fails to accelerate support for chipmakers. Speaking at a Kwanhun Club forum on Thursday, Kim cited an intense urgency created by China's rapid deployment of state resources, specifically noting that CXMT Corp. is investing more than its annual revenue to close the technology gap.

With the global memory-chip market projected to reach $1 trillion by 2030, Kim argued that the government must prioritize critical infrastructure, such as power and water supplies, over policies aimed at redistributing industry profits. He cautioned against treating semiconductor gains as funds to be divided, asserting that such a strategy would jeopardize the country's primary economic driver.

Kim also criticized the practice of tying employee incentives to operating profits. He stated that such moves undermine shareholder interests and could ultimately harm both company management and employees, questioning the appeal of companies that act against the interests of their investors.