[Work Report] Ministry of Industry Expands Future Car Investment... Full-Scale Launch of 'Korean New Deal'

1.1 Trillion Won Investment in Level 4 Autonomous Vehicle R&D... Expansion of Hydrogen and Electric Vehicle Charging Stations
Large-Scale Renewable Energy Projects Including Solar and Wind Launched... New Advanced Investment Zones Established to Attract Overseas Investment

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will invest more than 1 trillion won in the development of fully autonomous vehicle technology and expand hydrogen and electric vehicle infrastructure to revitalize future cars. It will also actively promote the Korean-style New Deal project, which induces private investment and regional vitality by launching large-scale renewable energy projects such as solar and wind power.

The Ministry of Trade, Industry and Energy announced the 2021 work report containing these details on the 17th.

First, it will promote support for future car development and the expansion of related ecosystems. To commercialize 'Level 4' autonomous vehicles, a total of 1.1 trillion won in research and development (R&D) funds will be invested by all ministries by 2027. Through public-private cooperation, finished car manufacturers will discover business restructuring for 30 parts companies, and the government will provide support in R&D, finance, and tax incentives.

Expansion of hydrogen and electric vehicle infrastructure and markets will also be pursued. Charging stations will be intensively expanded around daily life hubs such as rest areas and transfer stations, and subsidies for electric taxis, hydrogen buses, and hydrogen trucks will be newly established or expanded. The mandatory purchase ratio of hydrogen and electric vehicles by public institutions will be raised from the previous 56% to 80%, and official vehicles will be converted 100%, focusing on market creation through expanded public demand.

System semiconductors and bio industries will also be intensively fostered as 'post-semiconductors.' To nurture system semiconductors, which are less competitive compared to memory semiconductors, support for design and development and foundry openness will be expanded. A 'K-Semiconductor Belt' will be established with bases in Yongin (designated specialized complex), Pangyo (design infrastructure support), and Chungbuk (advanced packaging infrastructure construction), strengthening the fabless (semiconductor design specialized companies) ecosystem as well. Additionally, bio production capabilities will be expanded, and self-reliance for 16 core technologies in bio materials, parts, and equipment will be supported.

The Ministry of Trade, Industry and Energy will also actively promote the Korean-style New Deal project to restore regional vitality through large-scale projects. First, large-scale renewable energy projects related to the Green New Deal, such as Saemangeum solar power and Jeonnam Sinan offshore wind power, will begin construction in the first and second halves of the year, respectively. The project scales are 5.8 trillion won and 45 trillion won, respectively. Smart meters (AMI), remote power metering and management devices, will be installed in 1.4 million apartments and 2.3 million houses.

Through the 'Regional Vitality 2.0' project, five regional new industries will be fostered: ▲ eco-friendly ships and hydrogen in the Southeast region ▲ robots and future cars in the Daegu-Gyeongbuk region ▲ AI home appliances and electric vehicles in the Honam region. To attract advanced overseas companies, advanced investment zones will be newly established, applying subsidies and land use exceptions to induce foreign investment.

In addition, the ministry plans to nurture 10,000 new export companies and supply 167 trillion won in customized trade finance for small and medium-sized enterprises and mid-sized companies, while actively supporting the industry's decarbonization technology innovation.

Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy said, "Over the past four years, we have focused on actively responding to Japan's export restrictions while leading rapid economic recovery through revitalizing the real economy and innovating manufacturing." He added, "This year, we will set the direction for rapid recovery, vigorous leap, and strong solidarity, and strive to realize an 'industrial powerhouse leading the global economy.'"

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