Low-Carbon Industrial Structure Restructuring... Announcement of 'Three Major Strategies for the COVID Era'

Eco-friendly and Digital Structural Innovation... "Steel and Petrochemical Improvements Amid US and EU Carbon Tax Impact"
"Future Cars, Digital Healthcare, IoT Appliances Aim for Global No.1"
"Like Bio... Prompt Establishment of Semiconductor, Future Car, and Secondary Battery Cooperation Model"
Minister Sung Yun-mo Emphasizes "Realizing Manufacturing Renaissance Post-COVID"

Sung Yun-mo, Minister of Trade, Industry and Energy./Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Moon Chaeseok] "We will transform key industries such as steel and petrochemicals into environmentally friendly sectors through innovative technology development. If we take the lead in commercializing future cars, digital healthcare services, and IoT home appliances, we can become the world’s number one."

On the 16th, Sung Yun-mo, Minister of Trade, Industry and Energy, made this announcement while presenting the 'Industrial Strategy in the COVID-19 Era' at the Korea Chamber of Commerce and Industry in Seoul.

Samjong KPMG proposed policy tasks over four months from June 22 to last month on behalf of the Ministry of Trade, Industry and Energy. They also collaborated with national research institutes such as the Korea Institute for Industrial Economics and Trade and the Korea Energy Economics Institute, as well as private institutions including Hyundai Research Institute, LG Economic Research Institute, POSCO Research Institute, and the Korea Institute for International Economic Policy.

Innovating Industrial Structure through Green and Digital... Preparing Steel and Petrochemicals for 'Carbon Tax'

Source: Ministry of Trade, Industry and Energy

The 'Three Major Industrial Strategies in the COVID-19 Era' announced by the Ministry include measures for 'structural innovation, revitalization, and expansion of solidarity and cooperation.' These are outcomes considering three major issues: COVID-19, climate change, and the US presidential election results.

The most important task among these is 'industrial structural innovation.' The industrial structure will be advanced based on the two pillars of the 'Korean New Deal' announced last July: the 'Green New Deal' and the 'Digital New Deal.'

In particular, the focus is on minimizing the impact on our key industries such as steel and petrochemicals in preparation for carbon taxes imposed by the European Union (EU) and the United States.

Specifically, the steel industry will integrate artificial intelligence technology to increase added value and efficiency. The shipbuilding sector will expand autonomous ships and smart shipyards.

Minister Sung said, "First, key industries such as steel and petrochemicals will be transformed into environmentally friendly sectors through innovative technology development," adding, "We will actively foster low-carbon new industries such as bio, future cars, secondary batteries, and the hydrogen economy to create new growth engines and opportunities for new jobs."

He added, "We will expand eco-friendly energy such as solar, wind, and hydrogen, and nurture next-generation green industries through the development of high-efficiency solar power and ultra-large wind power technologies. In the era of digital transformation (DX), we will support companies to enhance productivity by utilizing data, 5G, and AI technologies."

Fostering 'Second and Third Semiconductors' in Bio, Future Cars, and System Semiconductors

Source: Ministry of Trade, Industry and Energy

The government and companies are focusing on 'securing global market share by 2030.'

Key agendas include Samsung Electronics' 'Semiconductor Vision 2030,' Hyundai Motor Group's commercialization of 'Personal Air Vehicles (PAV)' by 2028, and maintaining the number one global market share in batteries by LG Chem and Samsung SDI.

Therefore, the government has set a goal to create the 'second and third semiconductor miracles' following the 'DRAM miracle' that dominated the world in the 2010s.

To revitalize industry in the COVID-19 era, the government is committed to fostering the 'Big 3 New Industries' (bio, future cars, system semiconductors).

Minister Sung emphasized, "If we take the lead in commercializing future cars, digital healthcare services, and IoT home appliances, we can become the world’s number one. The Big 3 new industries are icons of innovative growth."

First, the bio sector will expand production capacity and build an industrial ecosystem to become a 'global production hub.' Active support will be provided from COVID-19 vaccine and new drug development to commercialization.

Minister Sung said, "For the bio industry with great potential, we will focus on expanding production capacity and building an industrial ecosystem so that Korea can leap forward as a global production hub. We will actively support the development and commercialization of vaccines and new drugs in the COVID-19 era."

For future cars, the plan is to expand charging infrastructure and reduce vehicle prices to grow the domestic market. Support for restructuring eco-friendly businesses will be strengthened.

Earlier, President Moon Jae-in visited Hyundai Motor’s Ulsan plant on the 30th of last month and announced the 'Future Car Expansion and Market Preemption Strategy,' which includes lowering electric vehicle prices by 10 million won by 2025 compared to current prices. To achieve this, the Ministry of Trade, Industry and Energy established the Future Automobile Industry Division (Future Car Division) on the 3rd of this month.

'Technology SMEs' Strengthening Small and Medium Enterprises Reaffirming "Expansion of Solidarity and Cooperation"

Source: Ministry of Trade, Industry and Energy

The government once again announced its intention to expand the 'solidarity and cooperation' model that facilitates matching between small and medium-sized enterprises (supply companies) that have technology but lack capital to increase commercialization rates, and large corporations (demand companies).

They declared that specific cooperation models like the 'Bio Materials, Parts, and Equipment Solidarity Cooperation Council' launched in September will be replicated in the semiconductor, future car, and secondary battery sectors. The bio council includes 13 bio materials, parts, and equipment companies such as Celltrion and Samsung Biologics, along with 42 supply companies.

Minister Sung said, "The most effective strategy to prepare for the COVID-19 era and the post-COVID-19 era is solidarity and cooperation. Like the bio industry solidarity and cooperation that took its first step in September, we will create specific cooperation models in the semiconductor, future car, and secondary battery sectors."

Source: Ministry of Trade, Industry and Energy

The solidarity and cooperation strategy is a task to stabilize the domestic industrial supply chain in response to increased volatility in the global value chain (GVC). The government presented representative models such as ▲ joint development of bio materials, parts, and equipment ▲ future car-battery leasing business ▲ semiconductor cluster formation.

Previously, the government announced the 'Manufacturing Renaissance' policy in June last year. The goal is to become one of the world's top four manufacturing powers by 2030 and to usher in an era of 40,000-dollar national income. The ultimate aim of the three strategies announced that day is the realization of the manufacturing renaissance.

Minister Sung said, "To realize the manufacturing renaissance after COVID-19 and leap forward as a leading industrial power, meticulous strategy preparation and implementation are more important than anything else."

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