'From Full Import to Localization' Successively... Government-Funded Research Institutes Lead the 'Turnaround' Between Korea and Japan

Scale of Sobojaeng R&D Surged 89% Last Year
Continuous Success Stories of Localization from Total Import Dependence

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bong-su] # Case 1. The jig center used for ultra-precision cutting processing is 100% dependent on imports from Japan. However, following the so-called SoBuJang (materials, parts, and equipment) crisis, the Korea Institute of Machinery and Materials took the initiative and succeeded in domestic production with its own technology, and it is expected that at least 40% of the domestic market will be replaced by domestic equipment in the future.

# Case 2. The multilayer ceramic capacitor (MLCC), known as the rice of the semiconductor industry, has so far relied entirely on imports from Japan (80%) and China (20%). Likewise, the Korea Institute of Industrial Technology succeeded in developing a high-quality and high-efficiency manufacturing process in preparation for potential threats from Japan, transferred the technology to companies, and is on the verge of localization.

Since Japan's export restrictions against Korea in July 2019, government-funded research institutes have focused on research and development (R&D) related to materials, parts, and equipment, achieving some localization of technologies and producing results. Japan's export restrictions have ended up harming only their own companies while providing Korea with an opportunity to secure technological capabilities. Even within Japan, criticism has arisen calling it a "foolish policy (우책,愚策)," and government-funded research institutes are leading this reversal of fortunes.

According to the National Science and Technology Council (NST) on the 19th, the scale of new R&D related to SoBuJang by 25 government-funded research institutes in the science and technology fields has increased significantly since 2020. Research funding rose to 475 billion KRW, an 89% increase from 250.2 billion KRW the previous year, and the number of new projects increased by 120 to 833 from 713 the previous year. Among the 25 institutes, 15 are conducting about 1,800 SoBuJang-related R&D projects with a budget of approximately 900 billion KRW since 2019. Additionally, about 180 R&D projects are being carried out through the national research infrastructure 3N (N-Lab, N-Facility, N-Team).

The Industrial Toxic Gas Analysis Standard Team of the KRISS Gas Analysis Standard Group is conducting quality evaluation of hydrogen fluoride.

Accordingly, some technologies have already been developed and transferred to large and small companies, showing results. In 2019, there were 255 technology transfer cases worth 18.3 billion KRW, and last year, 186 cases worth 28.8 billion KRW. The Titanium Laboratory at the Korea Institute of Materials Science developed and transferred technology for a new titanium material and blade manufacturing technology for energy plants with 13% higher tensile strength compared to commercial alloys. The Fluorochemical Materials Process Laboratory at the same institute developed and transferred the manufacturing process technology for perfluorosulfonic acid ionomer (PFSA), which had been entirely dependent on imports.

The Korea Institute of Industrial Technology also developed a process technology that can improve the mass production yield of nickel powder, a core raw material for multilayer ceramic capacitors (MLCC), by 1.5 times compared to before, and transferred it to companies. The Korea Institute of Machinery and Materials also succeeded for the first time in domestic production of the ultra-precision cutting equipment jig center, which was entirely dependent on imports from Japan, and expects about 10 billion KRW in sales and a 40% import substitution effect in the future. An NST official said, "Government-funded research institutes are striving to develop and transfer core original technologies that can reduce overseas dependence," adding, "We support companies' technological competitiveness by solving technical difficulties and providing infrastructure."

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