Korea Achieves First Self-Reliance in 'Hydrofluoric Acid,' One of the Three Major Regulated Items by Korea and Japan

Seong Yun-mo, Minister of Industry, Visits Solbrain in Gongju, Chungnam on the 2nd
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[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Korean companies and the government have collaborated to achieve domestic self-reliance for one of the three major Japanese export-restricted items, hydrogen fluoride. The protagonist is Solbrain, a KOSDAQ-listed company that has secured the capability to mass-produce the highest purity hydrogen fluoride acid (12 Nine).

On the 2nd, Sung Yun-mo, Minister of Trade, Industry and Energy, visited Solbrain, a semiconductor and display materials company located in Gongju, Chungcheongnam-do, to hear about the achievements so far and the difficulties faced in the field related to materials, parts, and equipment (MPE) policies. Attending the site visit were government officials including Minister Sung and Kang Kyung-sung, Director of the Industrial Materials and Equipment Industry Policy Division at the Ministry of Trade, Industry and Energy, as well as corporate executives including Kang Byung-chang, CEO of Solbrain.

According to the Ministry of Trade, Industry and Energy, Solbrain completed the new and expanded construction of its hydrogen fluoride plant early in response to Japan’s export restrictions, securing mass production capacity of the highest purity hydrogen fluoride (12N). Before Japan’s export restrictions, Korean semiconductor and display companies mainly used Japanese-made high-purity hydrogen fluoride solution, but thanks to Solbrain’s new and expanded facilities increasing production volume, a significant portion of domestic hydrogen fluoride solution demand is now supplied domestically, ensuring supply stability.

The Ministry explained that this is the first domestic self-reliance achievement realized through cooperation between Korean companies and the government in response to Japan’s export restrictions on the three major items. Solbrain’s 12N hydrogen fluoride solution contains impurities at only one part per trillion, making it suitable not only for display but also for semiconductor companies that require even higher purity.

On this day, Minister Sung was the first among companies related to the three individually licensed items?hydrogen fluoride, resist, and fluorinated polyimide?subject to Japan’s export restrictions since July last year, to visit Solbrain. The visit aimed to encourage Solbrain, which contributed to securing stable supply of high-purity hydrogen fluoride solution, and to hear directly from the field. This was the eighth site visit overall to MPE companies.

Minister Sung said, "Since Japan’s export restrictions in July last year, the public and private sectors have worked together to actively respond, and Solbrain’s early expansion of high-purity hydrogen fluoride solution production capacity is a representative achievement. I thank the executives and employees of Solbrain who spent last year tirelessly and anxiously to stably expand domestic hydrogen fluoride solution production capacity based on highly difficult refining technology."

CEO Kang also said, "The early completion and operation of the new and expanded plant was possible thanks to timely government-wide support in chemical substance-related permits and approvals." The Ministry explained that the cases CEO Kang mentioned include early approval support for installation inspections of handling facilities, hazardous chemical substance business permits, and support for expanding wastewater treatment plants to ensure stable operation of the new and expanded plants.

Source: Ministry of Trade, Industry and Energy

Minister Sung also mentioned major achievements of government policies with MPE companies last year, related to expanding domestic production capacity, attracting investment, establishing new domestic supply chains, and resolving field difficulties.

Specifically, ▲ the establishment and operation of new factories and increased domestic investment in MPE strengthened domestic production capacity for import-dependent items; ▲ cases of open technology acquisition such as attracting overseas companies in the MPE sector to Korea and overseas mergers and acquisitions (M&A) increased; ▲ and as cooperation among companies increased, more companies sought to discover potential domestic companies and establish new supply chains.

Meanwhile, the government has been operating the 'Public-Private Joint Materials and Components Supply Response Support Center' since July 22 last year, providing support such as shortening permits and approvals.

According to the Ministry of Trade, Industry and Energy, as of the 12th of last month, the permit period for chemical substance handling facilities was reduced from 75 days to 30 days, and special extended working hours were allowed for 1,275 employees at 12 business sites.

For 1,567 applications for financial difficulties, the government provided 100 billion KRW in emergency management stabilization funds and 3.1503 trillion KRW in liquidity support (including maturity extensions and new loans).

This year, the government plans to invest 2.1 trillion KRW in MPE-related budgets to strengthen support centered on 100 core strategic items, including technology development, demonstration, and mass production testbed construction. This is 2.5 times the 832.5 billion KRW spent last year, enhancing full-cycle support from development to mass production.

Through 100 specialized leading companies and the expansion of cooperation models between demand and supply companies, the government aims to nurture a group of companies that will lead the global supply chain. It also plans to provide financial support for MPE companies’ production and research activities through investment fund formation, expanded tax credits for R&D and facility investments, and more.

The Financial Services Commission plans to contribute 200 billion KRW plus additional funds, the Ministry of SMEs and Startups 100 billion KRW, and the Ministry of Trade, Industry and Energy 100 billion KRW to establish and operate a dedicated MPE fund.

Minister Sung stated, "This year as well, we will build an industrial ecosystem firmly supported by MPE companies like Solbrain to realize an 'unshakable industrial powerhouse.'"

Source: Ministry of Trade, Industry and Energy

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