Ministry of Industry to Support 13.3 Billion KRW in R&D for 'International Use' Core Technology Development This Year

Announcement of 13.3 Billion KRW Support for Developing Core Technologies in Quality Response for Global Key Industries

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy announced on the 25th that it will support 13.3 billion KRW for the core industry quality response root technology development project, which supports the entry of root companies into the global value chain (GVC).

The ministry stated that it will support 13.339 billion KRW (national treasury basis) for about 17 new projects this year.

These projects passed the preliminary feasibility study in June last year and were re-planned as the preceding project, 'Advanced Root Technology Development,' sunsetted starting this year. As a result of the feasibility review, the project budget was expanded to 177.3 billion KRW (124.8 billion KRW in national funds) over five years from this year to 2024.

The project was planned to solve difficulties faced by the root industry, such as the limitations of the domestic market and dependency on demand companies. It is mainly composed of tasks that help overcome the technology gap required by global companies to enter the GVC.

First, from the planning stage, measures to induce commercialization and dissemination of results were reflected. It is mandatory to submit a letter of intent to purchase or a technology development request from global demand companies to encourage commercialization immediately after technology development is completed. The dissemination plan of development results is included as an evaluation item during selection.

To reflect the actual demand of companies, the number of tasks, duration, and amount initially set during the preliminary feasibility planning will be flexibly applied and adjusted within the budget range during the selection evaluation.

This year's planned project industrial sectors include machinery/heavy equipment, automobiles, and electronics, which were planned based on the high demand and utilization by domestic root companies during the preliminary feasibility planning.

The beneficiary scope of root companies was also expanded. The qualification for the leading institution was extended to root technology specialized companies or companies issued with root company certificates.

Root technology specialized companies are those that possess core root technologies and have recorded more than 50% of their sales from these technologies, indicating high growth potential. As of the end of last year, there were 1,005 such companies, accounting for 3.1% of all companies. Companies issued with root company certificates numbered 4,061 as of the end of last year, accounting for 12.5% of the total.

An official from the Ministry of Trade, Industry and Energy expressed, "Through this project, domestic root companies will secure world-class technology and lead the competitiveness of the domestic root industry as key players within the GVC."

Applications for support projects can be submitted by downloading and filling out the forms such as the project plan from the Korea Institute for Advancement of Technology’s Industrial Technology Support website by 6 p.m. on the 27th of next month. Whether a project briefing session will be held will be announced separately.

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