Korean president Yoon Suk Yeol (pictured) said that the money was designed to support large-scale investments by Korean chip-makers.
The funds will be disbursed by the Korea Development Bank.
A fund worth $733 million has been set up to support equipment vendors and fabless companies.
Yoon said that the country’s non-memory chip makers needed to increase their competitiveness and instructed the Ministry for Industry to come up with ideas how it could be achieved.
