(Bloomberg) -- South Korea will begin awarding aid to chipmakers from July, kicking off a 26 trillion won ($19 billion) package of financial support pledged toward boosting a critical industry.

Most Read from Bloomberg

• Biden’s Disastrous Debate Accelerates Doubts Over Candidacy

• Democrats Question Replacing Biden: Here’s How It Could Work

• Gavin Newsom Is Ready for the Biden Emergency

• Biden Struggles as He Spars With Trump on Economy: Debate Takeaways

• Supreme Court Overturns Chevron Rule in Blow to Agency Power

Seoul will begin with an 18 trillion won package of measures including preferential loans and investment capital. Starting next month, eligible firms can tap a 17 trillion-won loan program at the market’s lowest interest rates, the finance ministry said in a statement on Wednesday. The government will also help set up two funds totaling 1.1 trillion won, the smaller of which will pool 300 billion won by 2025 and begin investing in local makers of chipmaking gear and materials next month.

Korea joins countries from the US to China that’re funneling government aid into a strategic arena, particularly as geopolitical tensions fragment the global chip supply chain. Samsung Electronics Co. and SK Hynix Inc. technology helps make South Korea the world’s biggest maker of memory chips. The government is now investing $470 billion to build a semiconductor “mega cluster” outside of Seoul that will serve as the heart of its chip industry.

Seoul’s package of aid moves comes as the US presses allies to curb China’s access to semiconductor technology. American officials want South Korea to restrict the flow of equipment and technologies for making high-end logic and memory chips to China, Bloomberg News has reported.

To support the overall plan, the government will extend tax incentives to eligible firms by another three years. It’s also considering expanding the scope of beneficiaries to include makers of chip materials, parts and equipment.

Most Read from Bloomberg Businessweek

• The FBI’s Star Cooperator May Have Been Running New Scams All Along

• Japan’s Tiny Kei-Trucks Have a Cult Following in the US, and Some States Are Pushing Back

• RTO Mandates Are Killing the Euphoric Work-Life Balance Some Moms Found

• Surging Returns Lure Private Equity Giants to India

• How Glossier Turned a Viral Moment for ‘You’ Perfume Into a Lasting Business

©2024 Bloomberg L.P.