Jungjingong Supports Development of Future Mobility Industry in Gyeongnam

12-Party Multilateral Agreement Including Jungjingong, Ministry of Trade, Industry and Energy, Gyeongnam Province, and Korea Institute of Materials Science
Establishing a Platform to Foster Eco-Friendly Materials and Components Industry and Support Future Mobility Innovation Companies

At the business agreement ceremony for the Gyeongnam Future Mobility Industry Development Support Platform held on the 16th, Chairman Kim Hak-do is giving a speech.

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 16th that it signed a "Future Mobility Innovation Company Support Platform Business Agreement for Fostering the Eco-friendly Materials, Parts, and Equipment Industry in Gyeongnam" with the Ministry of Trade, Industry and Energy, Gyeongsangnam-do, and regional innovation institutions at the Korea Institute of Materials Science in Changwon, Gyeongnam.

There are 1,931 automobile parts companies in Gyeongnam. These companies mainly produce key parts of internal combustion engine vehicles such as automobile engines (24.7%) and power transmission (20.5%), so they need to respond to the ongoing structural transition of the automobile industry toward eco-friendly mobility. Accordingly, the government, local governments, public institutions, and financial institutions have established a platform and begun full-scale support.

The 12 agreement institutions, including SBC, decided to build an autonomous collaboration platform to support innovative companies and to pool efforts to support the commercialization of eco-friendly future mobility materials, parts, and equipment companies located in the Gyeongnam region. They plan to expand inter-institutional linked support from discovering and evaluating excellent technology-holding companies to financial support.

For example, when technology support and research institutions discover, evaluate, and recommend excellent technologies, financial institutions including SBC simultaneously provide financing necessary for the production base establishment and commercialization of technology-holding companies. Additionally, the Ministry of Trade, Industry and Energy is responsible for establishing policies to foster the future mobility industry, discovering and promoting research and development (R&D) projects, and supporting companies transitioning to future car industries, while Gyeongsangnam-do oversees platform operation, R&D project support, demand discovery, and networking.

The main support targets are companies in the Gyeongnam region aiming to commercialize development technologies related to materials, parts, and equipment in the eco-friendly future mobility fields such as hydrogen electric vehicles and electric vehicles. This year, the goal is to discover 50 companies and provide 50 billion KRW in financial support, with plans to expand the number of supported companies and scale annually.

Chairman Kim Hak-do said, "For regional industrial innovation, it is necessary for local governments and related institutions that understand the characteristics of the region and companies well to provide concentrated support through relay-style inter-institutional support projects." He added, "I hope this business agreement, part of SBC's regional core industry growth promotion project, will greatly help automobile companies in the Gyeongnam region respond to the structural transition centered on future cars."

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