Korea Needs New Technological and Industrial Strategies

South Korea is advised to work on new scientific, technological and industrial strategies.

A new Cold War between the United States and China is becoming reality after the passage of the CHIPS-Plus Act and U.S. House Speaker Nancy Pelosi’s visit to Taiwan. The Korea Institute for Industrial Economics and Trade (KIET) said in its report on Aug. 4 that South Korea needs to prepare semiconductor industry advancement strategies.

“The ultimate purpose of the CHIPS-Plus Act of the United States is to overwhelm China in terms of economic and military power as well as technology,” it said, adding, “The US$52.7 billion budget will be spent for semiconductor companies investing in the United States, a 25 percent tax deduction will be provided for them for 10 years with a total scale of US$24 billion, and those benefiting from the tax deduction cannot expand their production and investment in China for 10 years.”

According to the institute, the act is the first stage of an expanded rivalry between the United States and China and the huge fiscal spending reconfirms the fact that the competitiveness of a state hinges on science and technology and advanced industrial capabilities.

“Under the circumstances, South Korea needs to work on and implement new scientific, technological and industrial strategies,” it continued to say, adding, “Also urgent are those for utilizing sea changes in global industries as a chance to leap forward.”

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