"Achieving $50 Billion in Machinery Exports for 3 Consecutive Years"... Investing 100 Billion in Technology Development

'2020 New Year's Meeting of Machinery Industry Professionals' Held
Government Introduces 'Three Core Policy Directions for Machinery Industry'
"26.6 Billion Won Support for Advanced Technology Development Including D.N.A"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The government plans to invest more than 100 billion won this year in technology development in the machinery sector to support the machinery industry and achieve $50 billion in general machinery exports for the third consecutive year.

The Ministry of Trade, Industry and Energy and the Korea Machinery Industry Promotion Association held the '2020 Machinery Industry New Year's Meeting' on the 15th at the 63 Convention Center in Seoul with about 300 industry, academia, and research representatives from the machinery industry.

At the event, Deputy Minister Jeong Seung-il of the Ministry of Trade, Industry and Energy attended to encourage the efforts of industry officials who contributed to the development of the machinery industry and shared last year's achievements and this year's policy directions.

First, Deputy Minister Jeong highly evaluated the achievement of $50 billion in general machinery exports for two consecutive years last year and expressed gratitude for the efforts of the machinery industry.

He emphasized, "This valuable achievement was made under difficult conditions such as the US-China trade dispute, the spread of protectionism, and the reorganization of the global value chain," adding, "Due to Japan's export restrictions, not only core materials and parts but also the role and importance of the machinery industry have increased."

Deputy Minister Jeong predicted, "This year, with progress in the US-China trade negotiations and recovery of emerging market economies, global trade and investment will improve, leading to a recovery in machinery demand."

However, he noted, "The conditions surrounding the machinery industry are not easy due to the pursuit by latecomer countries and industrial convergence triggered by D.N.A (Data, Network, Artificial Intelligence)."

Introducing the 'Three Core Policy Directions for the Machinery Industry in 2020,' Deputy Minister Jeong stated that the government will support the machinery industry to achieve $50 billion in general machinery exports for three consecutive years.

First, more than 100 billion won, the largest amount ever, will be invested in technology development in the machinery sector, while tax credits will be provided for technology development in materials, parts, and equipment, acquisition of foreign corporations, and joint investment by demand companies to secure core technologies early.

Support will be provided for demonstration projects involving both demand and supply companies, and potential demand will be expanded through incentives for domestic equipment introduction and pilot distribution in educational and research institutions.

266 billion won will be supported for the development of advanced technologies in the machinery sector such as DNA, and long-term and large-scale R&D projects will be planned in the construction machinery sector in the future.

Additionally, a 'Manufacturing Equipment Support Plan' that supports the localization and advancement of imported-dependent equipment throughout the entire cycle will be established within the first quarter of this year and will be fully supported, he added.

Son Dong-yeon, Chairman of the Korea Machinery Industry Promotion Association, said in his New Year's address that the fierce wave of the Fourth Industrial Revolution demands greater change and innovation in the machinery industry.

Chairman Son stated that they will focus on supporting ▲financial support and statistical maintenance for fostering the global equipment industry ▲establishing cooperation networks in emerging markets to diversify machinery industry export markets ▲training and dissemination to strengthen response capabilities to the Fourth Industrial Revolution.

This content was produced with the assistance of AI translation services.