This Year, 1-2 Specialized SoBuJang Complexes Designated for Peace and Chemical Control Act Special Cases

Faster and More Thorough... Accelerated Prototype Demonstration Testing, Strengthening Full-Cycle Cooperation Between Demand and Supply Companies
Expansion of Joint Safety Management Facilities for Waste and Chemicals... Increased Sharing of Technology, Information, and Personnel
Activation of Industry-Academia-Research Innovation System... Promoting R&D and Commercialization Support Linked with Regional 'Innovation Labs'

[Asia Economy Reporter Moon Chaeseok] The government plans to designate one to two specialized complexes for materials, parts, and equipment (SoBuJang) within this year. This move aims to stabilize the supply of SoBuJang amid calls for a reorganization of the global value chain (GVC) due to the spread of the novel coronavirus disease (COVID-19). Regulatory exemptions under the Chemical Control Act and the Chemical Substances Control Act are expected to be applied to these specialized complexes.

On the 13th at 2 p.m., the Ministry of Trade, Industry and Energy held the "4th SoBuJang Competitiveness Enhancement Committee" at the Korea Research Institute of Chemical Technology in Daejeon, where five agenda items were reviewed and approved. The meeting addressed tasks that need to be promptly pursued following the enactment of the "Special Measures Act for Strengthening the Competitiveness of the Materials, Parts, and Equipment Industry" (SoBuJang Special Act) on the 1st of last month.

The ministry diagnosed that the SoBuJang sector faces growth limitations due to a lack of full-cycle cooperation between demand and supply companies, insufficient planned clustering, and inadequate innovation systems. To address this, they plan to cluster SoBuJang companies to share technology, information, and facilities, activate industry-academia-research innovation systems, enhance supply chain stability, and establish a technology independence hub.

First, one to two SoBuJang specialized complexes will be designated this year. Existing industrial complexes with a high degree of SoBuJang clustering and newly planned or developing industrial complexes will be prioritized for pilot designation. According to the SoBuJang Special Act, designation will focus on five criteria: ▲industrial clustering and competitiveness enhancement effects ▲infrastructure availability ▲potential for linked development with key regional industries ▲securing specialized personnel ▲alignment with local government plans. Expansion will be considered based on future demand.

Comprehensive support will be provided across ministries for the specialized complexes. Initially, shared test beds will be expanded, and testing and analysis procedures will be expedited. This is because the SoBuJang industry requires numerous demonstration tests and performance evaluations during the commercialization phase following technology development.

They will utilize 240 test bed centers nationwide and 4,460 testing devices. For prototype production, equipment owned by the SoBuJang Convergence Innovation Support Group will be prioritized, and new infrastructure and equipment will be expanded as needed. The SoBuJang Convergence Innovation Support Group is an expanded organization from the existing convergence test bed, growing from 15 to 32 research institutions.

A dedicated testing and analysis center will operate within the specialized complexes to provide one-stop, rapid performance testing of technology development prototypes. Upon passing reliability evaluations, mass production tests will be conducted in connection with demand companies to promote commercialization and sales linkage.

R&D support will also be strengthened. Joint technology development between demand and supply companies within the specialized complexes will be prioritized as policy-designated projects. R&D projects with key SoBuJang cooperation countries such as Germany, Israel, and Russia, as well as technology cooperation partnerships with overseas research institutions, will be prioritized. This year, 4.3 billion KRW will be invested to support R&D and commercialization linked with regional "Innovation Labs" to enhance technology and production capabilities. Innovation Labs refer to five regional universities designated to support differentiated SoBuJang industries by region.

Smart industrial complexes such as Banwol-Sihwa and Changwon, launched in March, will be prioritized as specialized complexes. Smart industrial complexes are industrial parks that enhance corporate productivity and workers' quality of life through data connectivity and sharing, while creating new industries.

Support will be strengthened throughout the entire process from technology development to commercialization for resident companies.

Once designated as specialized complexes, exemptions from land use regulations related to location will be applied. Support for supplying industrial complex quotas in the metropolitan area will also be pursued. According to the SoBuJang Special Act, rent reductions for national and public property will be promoted for resident companies.

To enable relocated, startup, and returning companies to build factories quickly within the complexes, an "automatic permit and approval system (fast track)" will be implemented. This covers permits for building construction, installation of structures, land form changes, and land subdivision. Core strategic technology companies located outside the metropolitan area but within specialized complexes will receive preferential support conditions for location and facility investments. According to the "Local Investment Enterprise Attraction Support Standards," 9-50% of location costs and 11-34% of facility costs will be supported respectively.

Regulatory exemptions related to environmental and labor laws such as the Chemical Control Act, Chemical Substances Control Act, and Industrial Safety and Health Act will be applied. Earlier, on the 11th, the Ministry of Trade, Industry and Energy announced the expansion of core SoBuJang items from the existing top 100 items imported from Japan to 338 global items. Regulatory exemptions such as expedited permits and approvals will also apply to the expanded items.

The specialized complexes will be designated as regulatory free zones to promote support such as regulatory sandboxes and menu-style regulatory exemptions. A "Regulation High-pass" (tentative name) system will be introduced for resident companies to provide rapid and unified regulatory response services.

Regulatory difficulties will be centralized through the Materials Parts Supply Response Support Center, which will handle complaints, coordinate with ministries, and provide consulting services. This will help companies more easily consult and coordinate on chemical substance registration system compliance support, environmental regulation response difficulties, and tailored corporate support (Ministry of Environment). Complaints received by the center will be responded to by relevant ministries and local governments within 15 days regarding improvement status. Issues that can be improved will be addressed without delay.

This year, 20 billion KRW will be invested to form SoBuJang support teams at major regional universities to support technology and production process improvement R&D. A private win-win cooperation fund centered on demand companies will be established. A collaborative system with policy financial institutions will be built to support resident companies facing financial difficulties.

Meanwhile, the meeting also approved agenda items including the selection of core strategic technologies and fostering of specialized leading companies, plans to discover and nurture SoBuJang Startup 100, and measures to strengthen support for SoBuJang companies by public research institutions.

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