Ruling Party and Government: "This Year Again 'SoBuJang'... Early Execution of 2.1 Trillion KRW Budget and Creation of 600 Billion KRW Investment Fund"

11th Special Committee Meeting on Materials, Parts, Equipment, and Manpower on the Morning of the 30th at the National Assembly
Prime Minister Chung Sye-kyun Attends for the First Time Since Taking Office, Announces "Early Execution of 2.1 Trillion Won Budget in the First Half"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] The Democratic Party of Korea and the government have decided to invest 150 billion KRW in 15 public research institutes this year for the materials, parts, and equipment industry and to establish an investment fund worth 600 billion KRW. The 2.1 trillion KRW budget for materials, parts, and equipment prepared last year will also be executed early in the first half of this year.

Hong Eui-rak, the Democratic Party lawmaker serving as the secretary of the Special Committee on Materials, Parts, Equipment, and Workforce, said in a briefing after the 11th meeting held at the National Assembly on the morning of the 30th, "This year, regardless of changes in external conditions, we have decided to promote measures to strengthen the competitiveness of materials, parts, and equipment."

According to Secretary Hong, the government will invest 1.2 trillion KRW in research and development (R&D) budgets to stabilize the supply of 100 core items, including the three major export-restricted items.

Specifically, 150 billion KRW will be invested in 15 public research institutes, and investment funds will be established with 100 billion KRW from the Ministry of Trade, Industry and Energy, 400 billion KRW from the Financial Services Commission, and 100 billion KRW from the Ministry of SMEs and Startups.

For areas where domestic technology is lacking, international cooperation will be utilized through various methods such as establishing a 'Materials and Parts Technology Cooperation Center' with Germany, joint R&D, and corporate mergers and acquisitions (R&D).

More than 20 cooperation models between demand and supply companies will be discovered, and progress will be reviewed and revised through a pan-ministerial policy control tower and a competitiveness committee.

Secretary Hong said, "We have significantly improved the R&D process, including the improvement of the preliminary feasibility study system and the easing of the matching burden on demand companies," adding, "We will actively promote joint collaborative projects such as 'baton passing' and 'running together' to ensure that basic and fundamental research can be linked to commercialization."

The special committee also agreed that the measures taken last year in response to Japan's export restrictions achieved their intended purpose. Secretary Hong said, "There has been significant progress in stabilizing the supply of the three major export-restricted items from Japan in just half a year," and added, "The Special Act on Materials, Parts, and Equipment, passed by the National Assembly last year, will be enforced from April 1 this year, establishing a strong institutional foundation."

Prime Minister Chung Sye-kyun, who visited the special committee for the first time since taking office, said in his opening remarks at the meeting, "As the former chairman of the special committee, I will personally oversee the areas I have been interested in and spoken about."

He continued, "We will expedite the early execution of the 2.1 trillion KRW materials, parts, and equipment budget allocated this year and speed up related policies," emphasizing, "We will carefully examine the realities of companies to resolve difficulties and boldly pursue regulatory innovation to ensure that regulations do not hinder corporate growth."

Democratic Party lawmaker Yoo Young-min, who will succeed as the chairman of the special committee, said, "Self-reliance in materials, parts, and equipment has become essential, and since it is a difficult and long journey, there is concern that tension and public interest may decline," adding, "From now on, we will focus on increasing visible achievements and sharing results with the public."

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