[2020 National Audit] Sung Yoon-mo "Large Companies Provide Test Opportunities to SMEs... Win-Win for SoBuJang"

Sung Yun-mo, Minister of Trade, Industry and Energy (right), attends the comprehensive audit of the Ministry of Trade, Industry and Energy held on the 22nd at the National Assembly in Yeouido, Seoul, responding to questions from lawmakers. On the left is Jung Seung-il, Vice Minister of Trade, Industry and Energy. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] Sung Yoon-mo, Minister of Trade, Industry and Energy, stated at the National Assembly audit that large corporations (demand companies) are practicing win-win cooperation in materials, parts, and equipment by providing research and development (R&D) testing opportunities to small and medium-sized enterprises (SMEs, supply companies). Through the 'Solidarity and Cooperation Industrial Strategy' policy recently promoted by the Ministry of Trade, Industry and Energy, large corporations can be induced to participate in the domestic materials, parts, and equipment industry ecosystem.

Minister Sung made these remarks on the 22nd during the audit by the National Assembly's Trade, Industry, and Small and Medium Venture Business Committee (Sanjoongwi).

Assemblyman Jo Jeong-hoon of the Transition Era party asked Park Yong-geun, Vice President of SK Hynix, who appeared as a witness, whether large corporations prefer to be incorporated into overseas global value chains (GVC) rather than domestic value chains.

Vice President Park explained, "Since last July, when Japan began controlling strategic industries of materials and parts, we have entered an era where GVCs do not operate normally, and we had to build value chains under a new paradigm."

He added, "SK Hynix will participate in regional value chains (RVC). If there are competitive materials and parts companies that can meet demand, I think it is the government's role to match SK Hynix with such companies."

Assemblyman Jo asked again, "When you say regional, do you mean limited to domestic?"

Vice President Park replied, "It could be domestic, and if there is an area that SK Hynix can cover in business, it can also operate there."

Assemblyman Jo questioned Minister Sung, "SK prefers GVC and RVC, so isn't this at odds with the government's policy to incorporate large corporations into the domestic ecosystem?"

Minister Sung responded, "I do not think so."

Assemblyman Jo asked again, "How will the relationship with SK proceed? It seems impossible to prevent SK's global preference."

Minister Sung said, "Supply companies have lamented that no matter how much they develop products, demand companies do not give them testing opportunities. This time, demand companies are participating from the R&D planning stage. Not only from the perspective of cost and benefit but also by jointly creating supply stability and resilience, demand and supply companies are together building the materials, parts, and equipment ecosystem."

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