Gov’t to earmark 1 tln won in next year’s budget to support makers of chip parts

SEOUL, The government will seek to set aside more than 1 trillion won (US$847 million) in next year's state budget to support companies producing parts and materials used in chips amid Japan's export curbs, a lawmaker said Thursday.

In a related move, the government plans to unveil a set of measures to help enhance competitiveness in the chipmaking and key material industries in the coming days, according to Rep. Cho Jeongsik, policy chief of the ruling Democratic Party (DP).

His remarks came at a consultative meeting on state budget spending between the government and the ruling party held at the National Assembly.

South Korea spent 65.4 percent of its government budget in the first half in a bid to cope with an economic slowdown, larger than its initial target of 61 percent.

"Based on the firsthalf record, the ruling party and the government agreed to keep the trend of expansionary fiscal spending in the second half," Cho said.

Japan is reviewing whether to remove South Korea from a "whitelist" of trusted buyers following its imposition of export restrictions of key materials vital to making chips and displays earlier this month.

He stressed the need for the passage of a 6.7 trillionwon extra budget bill that has been pending at parliament since late April amid partisan tensions.

The DP calls for the swift passage of the supplementary budget bill to tackle the economic downturn.

But major opposition parties demand a vote on a motion to propose the dismissal of the defense minister for a maritime security failure as a precondition for passing the budget bill.

Source: Yonhap news Agency

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