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Energy costs added to supply price linkage, but effectiveness for chip materials, parts and equipment firms questioned

Electricity and gas bills paid by South Korean semiconductor materials, parts and equipment firms will be included in the supply-price linkage scheme from Dec. 3. The government introduced the move alongside a 5 trillion won semiconductor fund to channel large-company investment gains to smaller suppliers. Critics say the requirement that costs exceed 10 percent of supply payments and opt-out clauses by agreement may limit price pass-through. A budget office said results so far are hard to verify.