"Fostering 100 World-Class SoBuJang Companies"…Package Support for Specialized Leading Companies

'The 4th SoBuJang Competitiveness Enhancement Committee' Held
Announcement of Support Strategy for SoBuJang Specialized Leading Companies
Minimizing Investment and Regulatory Burdens... Companies to be Selected Within Q3

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The government has selected 100 companies to provide focused support with the goal of nurturing world-class materials, parts, and equipment (SoBuJang) companies.

On the 13th, the Ministry of Trade, Industry and Energy held the "4th SoBuJang Competitiveness Enhancement Committee" meeting and deliberated and approved five agenda items, including this plan.

The ministry plans to select 100 core strategic technologies related to SoBuJang and secure these technologies early through various government supports such as research and development (R&D), mergers and acquisitions (M&A), and tax incentives, along with corporate efforts.

Additionally, it will select 100 "SoBuJang Specialized Leading Companies" and 100 "SoBuJang Specialized Startup Companies" that possess capabilities in the 100 core strategic technologies, establishing a growth ladder from startups to small and medium-sized enterprises (SMEs) and then to specialized leading companies.

In particular, companies with the highest domestic capabilities and vision will be selected as specialized leading companies, and relevant government ministries will provide focused support throughout the entire process of technology development, production, and globalization. The goal is to nurture these companies into world-class enterprises.

This plan comes from the recognition that the ongoing Japanese export restrictions and the COVID-19 pandemic, which have destabilized global supply chains, present an opportunity for Korean companies to overcome the gap with global corporations.

[Image source=Yonhap News]

The Ministry of Trade, Industry and Energy will support bold technological innovation and investment for specialized leading companies and introduce a "Regulation High-pass System" to minimize regulatory burdens.

First, it decided to support up to 5 billion KRW annually for R&D. To encourage active participation of private companies in developing high-difficulty core strategic technologies, the financial burden on companies will be reduced. The private contribution ratio will be eased from the current 67% and 50% for large and medium-sized enterprises respectively to at least 35%, and from 33% to at least 20% for SMEs.

Centered on the Convergence Innovation Support Group composed of public research institutes, priority support such as technology transfer, technical consulting, and personnel dispatch will be provided to specialized leading companies.

For small and medium-sized specialized leading companies, a SoBuJang Growth Support Fund worth 400 billion KRW will be used to prioritize support for M&A and facility investment, and loans for facility investment will be assisted through the Industrial Structure Advancement Support Fund.

To minimize companies' regulatory burdens, the Regulation High-pass System will be introduced, providing services such as ▲responding within 15 days on improvement after receiving difficulties at the Materials and Parts Supply Response Support Center ▲mandatory application of fast-track permits for regulations such as the Chemical Control Act and the Chemical Substance Registration Act ▲review and improvement of regulations by the Regulatory Improvement Subcommittee under the Competitiveness Committee.

To establish a global value chain (GVC) hub, specialized leading companies will receive ▲company-specific consulting and overseas market information ▲support for various technology transactions based on investment infrastructure ▲promotion of products on overseas B2B sites.

The ministry plans to announce the results of the core strategic technology selection within this month and select companies through a public announcement for specialized leading companies by the third quarter of this year. Additional selections of specialized leading companies will be made three to four times by next year.

The government will provide close support to specialized leading companies for five years, conduct a mid-term evaluation in the third year to decide on continuation, and perform a final evaluation in the fifth year to comprehensively assess goal achievement. Additionally, a "Specialized Leading Companies Council" will be formed to facilitate exchange and communication among companies and serve as a channel for government policy suggestions.

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