Ministry of Land, Infrastructure and Transport Holds Briefing Session on National Railway Industry Cluster Project

Announcement of Support Funds and Development Strategies for Mid-sized and Small Enterprises in the Railway Sector

[Asia Economy Reporter Cha Wanyong] The Ministry of Land, Infrastructure and Transport and the Korea Rail Network Authority announced on the 25th that they will hold a government national railway industry cluster project briefing session for various mid-sized and small enterprises in the railway sector, including Hyundai Rotem and Woojin Industrial Systems (vehicle manufacturers).

The main contents of the project briefing session include ▲ explanation of the overview and progress status of the railway cluster project ▲ explanation of the basic strategy and basic plan of the cluster project ▲ guidance on strategies, measures, and benefits for nurturing resident companies ▲ suggestions, proposals, and Q&A from resident companies.

In particular, the focus is on introducing corporate nurturing strategies, including tax reductions and subsidies for resident companies. Detailed explanations will also be provided on plans to create comfortable workplaces and living environments desired by talents, as well as incentive support plans such as special apartment supply.

The national railway industry cluster is the first railway sector cluster project to be promoted domestically, and the basic plan has been under development since October last year. The plan is to apply for a preliminary feasibility study within the first half of 2023 to actively promote the project.

The railway cluster is designed to establish a ‘virtuous cycle structure of the railway industry’ where the cyclical demand and supply processes of the railway industry?including research and development, talent cultivation, vehicle and parts manufacturing and maintenance, testing and type approval of manufactured products, logistics, domestic and international sales, and cooperation between domestic and foreign institutions?can be processed quickly and comprehensively within the cluster.

Core railway industry support facilities such as the Railway R&D Center, Railway Talent Center, Second Control Center, Smart Logistics Center, and International Convention Center will also be constructed to support the sustainable growth of resident companies in the long term.

Once the railway cluster is completed, the scale of the domestic railway industry is expected to increase by 46%, the added value to the national GDP will increase by 700 billion KRW, and approximately 6,900 new jobs will be created.

Lee Yunsang, Director of the Railway Bureau at the Ministry of Land, Infrastructure and Transport, stated, “The railway industry is a representative low-carbon growth industry growing at about 2.8% annually worldwide. We will establish a national railway industry cluster that can be promoted as a world-class brand, nurture many global vehicle manufacturers and strong small and medium parts companies, and based on this, enable Korea to leap forward as a railway powerhouse.”

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