South Korea on Tuesday announced plans to invest almost $5 billion extra in the country's semiconductor industry, citing "growing uncertainty" over US tariffs.

The country is a major exporter to the United States and its powerhouse chip and auto industries would suffer a hefty hit from President Donald Trump's threatened 25 percent levies.

Concerns about the sector have hammered the Seoul-listed shares of the world's largest memory chip maker Samsung, and largest memory chip supplier SK Hynix.

Officials have now stepped up to provide more cover for the economically crucial industry by announcing an extra $4.9 billion will be pumped into it through 2026.

"An aggressive fiscal investment plan has been devised to help local firms navigate mounting challenges in the global semiconductor race," the finance ministry said in a press release.

It warned "growing uncertainty" following rounds of US tariff threats had left the sector clamouring for government support.

"To foster a........

© International Business Times