Hong Nam-ki "Expecting Material, Parts, and Equipment Technology Level to Improve to 85% of Advanced Countries"

Establishment of the 'Basic Plan for SoBuJang Competitiveness'... Approval of 5 Core SoBuJang Cooperation Models

On the 14th, the 5th Committee on Strengthening Competitiveness of Materials, Parts, and Equipment was held at the Government Seoul Office in Jongno-gu, Seoul, chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki. / Photo by Moon Ho-nam munonam@

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced on the 14th that a basic plan to strengthen the competitiveness of materials, parts, and equipment (SoBuJang) will be established to raise the technological level to about 85% of that of advanced countries.

On the same day, Deputy Prime Minister Hong presided over the "5th Materials, Parts, and Equipment Competitiveness Enhancement Committee" at the Government Seoul Office and explained, "Under the vision of becoming a SoBuJang powerhouse, we have prepared three key strategies: strengthening production capacity and supply chains for advanced SoBuJang, establishing a global hub for advanced industries through the clustering of advanced companies, and operating a close cooperation system between ministries and the public and private sectors." He added, "If the basic plan is steadily implemented, the number of Korean SoBuJang companies in the 'Forbes 2000' (the global top 2000 companies announced by Forbes, USA) will increase from 11 to 20 by 2025, and the technological level of SoBuJang compared to advanced countries will improve from the low 80% range to 85%."

He also announced that cooperation projects (cooperation models and win-win models) between demand and supply companies will be approved for the development of five core SoBuJang, including key modules in the machinery field, high value-added optical and new materials for point and adhesive applications, and parts and materials for semiconductor inspection equipment. Approved projects include not only joint research and development and purchase linkage but also cases where demand and supply companies jointly invest to establish joint ventures.

Deputy Prime Minister Hong said, "Through this approval, we plan to provide detailed support tailored to corporate demand, including research and development (R&D), funding, tax benefits, manpower and infrastructure, and special exceptions for environmental and labor regulations." He added, "If this cooperation project is successfully promoted, it is expected to create about 130 billion KRW in private investment and approximately 1,000 new jobs by 2025."

Regarding the advancement of SoBuJang R&D, he explained, "Beyond stabilizing existing supply chains, we aim to preemptively discover future leading items that can create new markets, establish an inter-ministerial R&D 'relay track' for future new materials, and promote 'long-distance running' to support long-term research and technology accumulation for over 10 years, thereby systematizing the entire cycle of R&D from technology to market." He continued, "We will introduce a rapid procurement procedure for expensive special research equipment to significantly shorten the purchase period, and to supplement the reduced R&D investment capacity of companies due to COVID-19, we will ease the matching burden for research expenses to 25% or more for large and medium-sized enterprises and 20% or more for small and medium enterprises."

He also stated, "We will provide companies with three major services?material exploration and design, process development, and measurement and analysis?to support the entire cycle from planning to commercialization without gaps," adding, "Through this, the development period for new materials is expected to be shortened by up to 50%."

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