President Lee Jae-myung on the 10th said that preparations are almost complete for easing the separation of banking and commerce to support large-scale investment attraction in advanced technology industries such as artificial intelligence (AI) and semiconductors. Starting on the 11th, the Ministry of Economy and Finance and other economic ministries will begin work briefings, where they plan to report to President Lee specific measures related to the separation of banking and commerce.
In the afternoon, President Lee presided over the "K-semiconductor development strategy briefing" at the presidential office and invited experts from private corporations and academia to discuss support measures in the semiconductor sector. At the meeting, President Lee said, "The reason the principle of separating banking and commerce restricts financing is to prevent the harms of monopoly, but in advanced industries where large-scale investment is needed, that issue has already long passed," adding, "It may actually be a factor that hinders industrial development. We are preparing institutionally."
President Lee referred to SK Group Chairman Chey Tae-won repeatedly pointing out the limits of "raising investment funds," saying, "He has a point." He added, "We are preparing practical measures within the bounds that do not undermine the principle of separating banking and commerce. It seems almost done." The idea is that to boost semiconductor investment, Korea needs to boldly improve regulations on investment in advanced industries.
The government is expected to announce related measures on the 11th, when the president's work briefings are scheduled. A presidential office official said, "For now, today (the 10th)'s briefing is a venue to actively hear corporations' views and discuss government support measures from multiple angles," adding that plans to ease investment regulations will be raised separately during each ministry's work briefing.
Specifically, in advanced strategic industries such as semiconductors, corporations with a holding company structure would be allowed to establish great-grandchild companies engaged in finance if they prove "business feasibility" and a "shortage of funds." The plan would lower the required equity holding ratio of a grandchild company in a great-grandchild company from 100% to 50%, and allow the Public Growth Fund to invest in all or part of the remaining 50%.
If implemented, SK hynix would benefit the most. That is because SK Group could establish a financial lease company and smoothly raise large-scale funds needed for building SK hynix's semiconductor plants. However, it is known that prior review by the Fair Trade Commission would be required, and the Korea Fair Trade Commission (FTC) would include a mandatory provision to assess the company's actual level of equity capital and the extent of its funding shortfall.