GOV’T TO SUPPORT INDUSTRIAL SECTOR

[Anchor Lead]

Global shortages of electronic chips and the trade war between the U.S. and China are threatening the Korean economy. Government officials and representatives of the industrial sector got together to discuss countermeasures.

[Pkg]

GM Korea is to shut down its factories in Bupyeong next week due to shortage of electronic chips for automobiles. Hyundai Motor just resumed operation of its previously shut down factories. Chip shortage led to a global race to develop them. The U.S. and China are pressuring Korean makers as they try to strengthen their own chip supply networks.

[Soundbite] Joe Biden(U.S. President(Apr. 12))

Topping the agenda of the Cheong Wa Dae meeting on Thursday was the chip shortage issue.

[Soundbite] (Pres. Moon Jae-in) : "The semiconductor sector is pivotal to the present and future of our economy. We must maintain the lead in the global chip supply network."

Seoul plans to respond to growing pressure from Washington and Beijing by building a K-chip belt. The government reviewed providing support for collaboration between the domestic semiconductor and auto sectors. The nation's battery sector was put to the test this year, as its market share plummeted due to the rapid growth of Chinese makers. The government vowed to come up with comprehensive measures to ensure domestic batteries remain a global market leader. Tax breaks and deregulation are considered options.

[Soundbite] (Pres. Moon Jae-in) : "Lift excessive regulations that suppress innovation and make tax benefits for investment more efficient."

The government plans to announce its strategies on the creation of the K-chip belt and support for development of the battery sector within the first half of this year.