SEOUL: South Korea will push to set up a package worth over 10 trillion won ($7.28 billion) to support the chip industry as part of efforts to boost the competitiveness of the critical industry and to prop up economic growth, its Finance Ministry has said.

The planned assistance programmes of more than 10 trillion won aims at supporting facility investment and research and development programs for all sectors of the chip industry from cheap materials to manufacturing equipment and components, Finance Minister Choi Sang-mok said during his visit to a local chip making company.

The package would be created through a fund to be financed by private entities and public financial institutions, such as the state-run Korea Development Bank, reports Yonhap news agency.

"The indirect way of financial support is meant to prevent risks for chipmakers... which will focus particularly on the relatively weak fabless sector, as well as the materials, parts and equipment fields," Choi said, stressing the commitment to the creation of an industry ecosystem to enhance competitiveness.

Details of the envisioned programme will be announced after consultations with relevant entities, according to the Ministry.

The semiconductor industry is a key growth engine for South Korea, which is the world's biggest memory chip producer as home to Samsung Electronics and SK hynix.