Fostering 100 Global SoBuJang Companies by 2024

Ministry of Industry Announces Plan to Select 'So-Bu-Jang Top Companies' on the 12th
20 Companies This Year... 100 Selected by 2024 for Focused Development

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The government will nurture 100 world-class materials, parts, and equipment companies over the next four years. This is to strengthen the stability of our industry's supply chain in the mid to long term.

On the 11th, the Ministry of Trade, Industry and Energy announced that it plans to publicly announce the 'Materials, Parts, and Equipment Top Company Selection Plan' starting from the 12th.

This year, 20 companies will be selected, and by 2024, a total of 100 materials, parts, and equipment top companies will be chosen and fully supported to grow into global leaders.

This project, implemented for the first time this year, is based on the 'Special Measures Act to Strengthen the Competitiveness of the Materials, Parts, and Equipment Industry,' which was reorganized last April. Preparations were made following the 'Materials, Parts, and Equipment 2.0' strategy announced in July, and the project has now commenced.

Companies specialized in core strategic technology items of materials, parts, and equipment will be selected. The selection and support will focus not only on current status but also on future technology and growth potential.

Priority Selection of 100 Core Materials, Parts, and Equipment Technologies Including Semiconductors and Displays

Source: Ministry of Trade, Industry and Energy

First, companies with competitiveness and potential in technologies and items essential to the supply chains of our key industries and future new industries will be selected.

Priority will be given to technologies in 100 core materials, parts, and equipment fields such as semiconductors, displays, electronics and electrical, machinery and metals, and basic chemicals.

Along with current sales and financial indicators, in-depth evaluations will be conducted through expert due diligence and interviews on future R&D investment, technology and human resources capabilities, growth potential, international cooperation, and network growth.

Furthermore, the selection will focus on small and medium-sized enterprises and mid-sized companies that will be the backbone of future manufacturing, without distinguishing company size.

The Ministry of Trade, Industry and Energy stated that after about three months of evaluation, the top companies will be selected and closely supported at the government-wide level.

More than 100 available programs across ministries will be linked for concentrated support.

In particular, up to 5 billion KRW per year in R&D support will be provided to support autonomous technology development. To ensure developed technologies lead to commercialization, priority support will be given to mass production testbeds with demand companies and a 400 billion KRW materials, parts, and equipment growth support fund.

Additionally, support will be provided for emblem production, export marketing, online exhibition halls, resolving on-site difficulties through the 'Materials, Parts, and Equipment Supply-Demand Response Center,' and regulatory special cases through the inter-ministerial Competitiveness Enhancement Committee.

Comprehensive Evaluation of Current Financial Indicators and Future Global Expansion Capabilities

Source: Ministry of Trade, Industry and Energy

From the 12th until the 20th of next month, the project announcement will be made, followed by a three-stage evaluation process of 'document review - in-depth evaluation - comprehensive evaluation' to select the top companies.

The first stage document review evaluates basic financial indicators, growth strategies, and technology development capabilities mainly quantitatively.

The second stage in-depth evaluation includes on-site inspections, presentation evaluations, and executive interviews to deeply analyze qualitative growth strategies such as global expansion capabilities and commitment.

The final comprehensive evaluation assesses the results of the first and second stages along with the urgency and ripple effects of core strategic technologies.

Companies that pass the evaluation will be finally selected by Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy after gathering opinions from related ministries.

An online project briefing session will be held on the 14th. The recorded video will be posted on the official YouTube channel of the Korea Institute for Advancement of Technology.

Minister Sung said, "To strengthen the competitiveness of the future materials, parts, and equipment industry, the role of companies with specialized technology and commitment is key. Starting with the selection of these top companies, we will lead the future industrial value chain proactively and create a foundation for growth into globally competitive companies."

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