"Eco-friendly Construction and Agricultural Machinery Should Receive Subsidies Like Electric Vehicles"

A machine tool production line of a company located in Changwon, Gyeongsangnam-do

[Asia Economy Reporter Choi Dae-yeol] It has been pointed out that subsidies should be provided or public research and development support should be given for electric excavators and agricultural machinery, just like electric vehicles.

At the 4th Future Industry Forum held by the Korea Chamber of Commerce and Industry on the 20th, Choi Seok-jin, Executive Vice President of the Korea Construction Equipment Industry Association, said, "Construction machinery, like the automobile industry, is equipped with internal combustion engine systems and is developing eco-friendly equipment as a solution to reduce carbon emissions," adding, "Tax benefits and subsidies at the same level as the automobile industry are necessary for technology development and the purchase of eco-friendly construction machinery."

The Korea Chamber of Commerce and Industry is examining current issues by major industries and sectors, and the machinery industry also echoed the need to accelerate digital transformation and carbon neutrality to secure competitiveness as a future industry. Kim Hyun-jung, Vice President of Deloitte Consulting, pointed out, "The digital transformation of the Korean machinery industry is slightly beyond the first stage of exploration among the four stages," adding, "Since it is centered on assembly processes, technological changes are not significant, and the size gap between companies is large, making it difficult to establish standardized digital transformation strategies and derive best practices."

To successfully achieve digital transformation in the machinery industry, Kim suggested that smart factories and smart products should be promoted together. He said, "The ultimate goal of the machinery industry is to transform from a simple manufacturing company into a data company," adding, "It is necessary not only to build smart factories based on data generated during production but also to collect and analyze data after sales to enhance product value and provide consumers with the optimal usage environment."

Regarding carbon neutrality, considering the industrial characteristic that indirect emissions account for over 90%, it was pointed out that measures such as introducing high-efficiency electric devices or replacing outdated facilities should be taken. Jung Eun-mi, Director at the Korea Institute for Industrial Economics & Trade, said, "Electricity usage accounts for most of the indirect emissions," adding, "It is necessary to develop high-efficiency and eco-friendly machines to contribute to the reduction of greenhouse gases across society and simultaneously pioneer new markets."

Jang Seok-in, Distinguished Professor at the Korea University of Technology and Education, said, "Semiconductor and display equipment, manufacturing robots, and smart manufacturing equipment must evade competitors' pursuit through product diversification," adding, "At the same time, next-generation machinery equipment fields should actively incorporate innovative technologies such as virtual and augmented reality, unmanned systems, and network convergence." He continued, "Since government support is mainly provided to small and medium-sized enterprises, the policy effect is extremely limited," and argued that tax credits for new technology R&D investments should be revised or the scope of support by the Korea Technology Finance Corporation should be expanded.

The industry emphasized the need for customized support measures considering the large gap between companies. Choi Hyung-gi, Executive Vice President of the Korea Machinery Industry Promotion Association, said, "Although digital transformation and carbon neutrality are important, customized support policies are crucial because the gap between companies within the industry is larger than in other industries." Kim Hee-seok, Executive Vice President of the Korea Machine Tool Industry Association, said, "The localization of the core technology CNC system is underway with government support, but since it is a long-term development project, the government must maintain continuous interest."

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