Choo Kyung-ho: "Add 'Bio' to So-Bu-Jang Policy Targets... Expand Core Strategic Technologies from 100 to 150"

Yoon Administration Holds First 'SoBuJang Competitiveness Enhancement Committee' Meeting

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is speaking at the 'Materials, Parts, and Equipment Competitiveness Enhancement Committee' held at the Government Seoul Office Building on the 18th. 2022.10.18 Photo by Yonhap News

[Asia Economy Sejong=Reporter Son Seon-hee] On the 18th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated, "The new government's 소재·부품·장비 (SoBuJang, Materials, Parts, and Equipment) policy target will be expanded from a focus on Japan and key industries to 'global and advanced future industries.'" He added, "The existing six sectors and 100 core strategic technologies, which were prepared in response to Japan's export regulations, will be expanded to seven sectors including bio and 150 core strategic technologies, with focused support."

Deputy Prime Minister Choo made these remarks during the first 'SoBuJang Competitiveness Enhancement Committee' meeting since the launch of the Yoon Suk-yeol administration, held at the Government Seoul Office. He further stated, "Generic products and raw materials with high importance, such as elements, will be separately selected and managed as 'SoBuJang supply chain stability items.'" Previously, the SoBuJang policy targeted six sectors: semiconductors, displays, automobiles, machinery and metals, electrical and electronics, and basic chemicals, with bio added now.

Deputy Prime Minister Choo also said, "While previous SoBuJang research and development (R&D) focused on technology development for key industries, going forward, we will actively expand R&D investment in new industries and strengthen the linkage with commercialization." He added, "We will broaden the scope of cooperative projects centered on domestic demand and supply companies to expand cooperation between overseas demand and domestic supply companies," and said, "Through this, we will prepare and promote a 'global SoBuJang advancement strategy' that utilizes the reorganization of global supply chains as an export opportunity for SoBuJang, beyond just domestic production of major imported items."

The government's SoBuJang policy has been pursued to reduce dependence on Japan for key items in related industries in response to Japan's 2019 export regulations, which caused significant disruption to the domestic industry. In fact, the dependence on Japan for the 100 core items under focused government management decreased by about 6 percentage points, from 30.9% in 2019 to 24.9% last year.

Regarding past policies, Deputy Prime Minister Choo said, "Meaningful results were achieved," but noted, "Considering the recent intensification of US-China competition, supply chain blockades, and the prolonged Russia-Ukraine war, which have caused continuous external shocks, the current response measures centered on specific countries have limitations." He specifically pointed out, "The R&D-centered support system for high-difficulty technology application items, which was problematic during Japan's export regulations, has limitations in managing generic products or raw materials extracted from minerals, such as elements, which became an issue in the second half of last year."

He also assessed, "To structurally improve the current account balance, it has become very important to reduce import dependence on intermediate goods (materials and parts) and capital goods (equipment) and to expand exports of domestically produced products."

The government plans to expand the fields and types of inter-company cooperative projects that support technology development of supply companies based on demand company participation, such as 'purchase commitments.' It will also switch to open recruitment through public announcements and support administrative procedures through related dedicated agencies.

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