Government Doubles Funding for Mid-Sized Companies' R&D... 26.9 Billion Won Support Next Year

Ministry of Industry Announces '2021 Mid-sized Enterprise R&D Project New Task Support Plan' on 22nd
Focus on 3 Key Directions: Core Industry Promotion, Regional Leading Company Growth, Innovation Ecosystem Establishment
Next Year, 50 New Selections in 5 Project Consortiums... Support for Technology Development and R&D Funding

Panoramic view of Namdong National Industrial Complex. (Photo by Asia Economy DB)

[Asia Economy Reporter Moon Chaeseok] The government will invest more than twice the amount of funds in research and development (R&D) projects for mid-sized and small but strong enterprises next year compared to this year. It has determined that the capabilities of mid-sized enterprises must be enhanced to lead future industries such as the Korean New Deal and materials, parts, and equipment sectors.

The Ministry of Trade, Industry and Energy announced on the 21st that it will issue an integrated announcement on the 22nd regarding the '2021 Mid-sized Enterprise R&D Project New Task Support Plan.'

It will support 26.9 billion KRW for five projects, including the World Class Plus (+) project. This is a 124% increase from 12 billion KRW this year. Through this, 50 consortia led by mid-sized enterprises will be newly selected and supported as executing organizations.

The Ministry plans to promote next year's mid-sized enterprise R&D projects based on three principles: ▲ fostering core industries ▲ growth of regional representative companies ▲ building an innovation ecosystem.

2021 Mid-sized Company Research and Development (R&D) New Project Support Program. (Data provided by the Ministry of Trade, Industry and Energy)

First, it plans to newly launch the 'World Class Plus Project' to grow representative projects of mid-sized and small but strong enterprises leading the Korean New Deal, materials-parts-equipment, and three major new industries (system semiconductors, bio-health, future cars).

Next year, 16 new companies will be selected. Up to 6 billion KRW in technology development funds will be supported per company over four years to secure global competitiveness.

The World Class Sherpa program will be operated to provide comprehensive support for corporate growth, including finance, export, and manpower. The Sherpa program is a growth support program offered by more than 10 institutions such as financial institutions, KOTRA, and the Patent Strategy Development Institute.

The 'Regional Representative Mid-sized Enterprise Development Project' will be expanded. Next year, 21 new companies will be selected and supported with up to 800 million KRW in R&D funds per company over two years. They will be required to form consortia with local small and medium enterprises, universities, and research institutes.

Through the 'Mid-sized Enterprise Win-Win Innovation Project,' up to 1 billion KRW will be supported over two years for seven initial mid-sized enterprise-small business consortia.

A new 'Strong Venture-type Mid-sized Enterprise Development Project' will be established. Six mid-sized enterprises will be selected and jointly supported with parent companies. This targets companies that have been neglected in small and mid-sized enterprise policies but have innovation will and potential.

The 'Mid-sized Enterprise Core Research Personnel Growth Support Project' will support the recruitment of young master's and doctoral degree holders and technical experts.

Cheon Young-gil, Director of Mid-sized Enterprise Policy at the Ministry of Trade, Industry and Energy, said, "We will focus on supporting mid-sized enterprises in securing growth engines and innovation leaps, such as new business investment and global expansion."

Director Cheon added, "We will also newly promote a 'Lighthouse Project' to create success cases such as mid-sized enterprises entering new businesses and business transformation."

Details regarding the project announcement can be found on the websites of the Ministry of Trade, Industry and Energy and the Korea Institute for Advancement of Technology (KIAT). The project briefing session will be held online on the 6th of next month. New task executing organizations will be finalized through evaluation around March to April next year.

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