South Korea to rewrite holding company rules for regional chip fab investment

South Korea plans to revise regulations governing holding companies to facilitate regional semiconductor fabrication investments, the Ministry of Trade, Industry and Energy said. The ministry announced the plan as part of efforts to support domestic chipmakers expanding production capacity. The proposed changes would ease restrictions on holding company affiliates investing in chip manufacturing facilities within the country. Officials said the move aims to create a more favorable environment for large-scale semiconductor investments by conglomerates. The ministry did not specify a timeline for the legislative amendments. The announcement follows increased global competition in the semiconductor sector and government pledges to bolster the domestic chip industry. Industry analysts have said regulatory hurdles have previously complicated investment structures for major conglomerates seeking to build new fabrication plants. The government has been working on a comprehensive strategy to support the sector through policy and financial incentives.