China's 'Gisulgulgi'... Display Also Designated as a 'National Advanced Strategic Technology'

Launch of Advanced Strategic Industry Policy Control Tower... '1st National Advanced Strategic Industry Committee'
Three sectors including semiconductors and secondary batteries... Total 15 technologies designated
Display also included... Lost top spot to China's rise last year
Support through specialized complexes and specialized graduate schools... Full-scale from next year

Samsung Display Unveils 'QD Display' for the First Time at CES
(Seoul=Yonhap News) Samsung Display revealed the QD Display at a private booth inside the Encore Hotel in the United States on January 4, 2022 (local time), one day before the opening of CES 2022. The photo shows the QD Display embedded with quantum dots. 2022.1.5
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[Asia Economy Sejong=Reporter Lee Jun-hyung] The government has launched the 'National Advanced Strategic Industry Committee,' a policy command organization for advanced strategic industries, and decided to include displays as a national advanced strategic technology alongside semiconductors and secondary batteries. This decision was made based on the judgment that comprehensive government-wide support is necessary to secure a 'super-gap' in the display industry, where China's rise has become full-scale. Starting next year, the government plans to accelerate support for national advanced strategic technologies by designating specialized complexes and specialized graduate schools.

On the afternoon of the 4th, the Ministry of Trade, Industry and Energy held the '1st National Advanced Strategic Industry Committee' chaired by Prime Minister Han Duck-soo at the Korea Chamber of Commerce and Industry in Seoul and deliberated and approved the 'New Designation of National Advanced Strategic Technologies (draft).' The newly designated national advanced strategic technologies include 15 technologies across three fields: semiconductors, secondary batteries, and displays. The committee plans to specify detailed technical levels, such as lithium secondary battery energy density, through industry and expert consultations before officially designating and announcing the national advanced strategic technologies.

National advanced strategic technologies are those classified by the government as core national technologies. Upon designation as a national advanced strategic technology, support for research and development (R&D), talent cultivation, and more can be received under the 'National Advanced Strategic Industry Special Act.' The special act passed the National Assembly in January and has been in effect since August 4 of this year.

Display Also Included as 'National Advanced Strategic Technology'

Specifically, eight technologies in the semiconductor field were designated as national advanced strategic technologies. Four memory semiconductor technologies and three non-memory semiconductor technologies were selected, respectively. In the semiconductor packaging field, one technology related to processes, assembly, and inspection for system semiconductors was also included as a national advanced strategic technology. In the secondary battery field, three technologies, including design, manufacturing, and process technologies for high-capacity cathode materials for lithium secondary batteries, were selected.

Notably, four technologies in the display field were included as national advanced strategic technologies. Initially, the National Advanced Strategic Industry Special Act, which serves as the basis for national advanced strategic technologies, was so focused on semiconductor support that it was even called the 'Semiconductor Special Act.' The national strategic technologies under the Restriction of Special Taxation Act also only cover three fields: semiconductors, batteries, and bio. This is why the display industry voiced complaints that they felt excluded from government support compared to other advanced industries.

As China's 'display rise' became serious, the government ultimately decided to include displays as a national advanced strategic technology. Last year, China surpassed Korea to take the top spot in the global display market with a 41.5% market share, overtaking Korea's 33.2%. This marks 17 years since Korea overtook Japan in 2004 to become the leader in the display market. Chinese companies, backed by massive subsidies and tax benefits from their government, launched a 'low-price offensive' without regard to price.

List of National Advanced Strategic Technologies. [Photo by Ministry of Trade, Industry and Energy]

Plans to Designate Specialized Complexes and Specialized Graduate Schools

The government intends to focus support on national advanced strategic technologies through deregulation and other measures. Accordingly, the committee also deliberated and approved the 'Specialized Complex Promotion Plan (draft)' and the 'Specialized Graduate School Promotion Plan (draft)' on the same day. The government plans to start the application process for specialized complexes targeting companies, metropolitan local governments, and government ministries within this year and complete the selection process by the first half of next year. Specialized complexes will receive package government support, including site acquisition, infrastructure development such as power and water supply, and permit processing. An official from the Ministry of Trade, Industry and Energy explained, "Existing industrial complexes can also be designated as specialized complexes," adding, "Since demand surveys have not yet been conducted, it is difficult to specify how many will be designated."

The first specialized graduate schools for national advanced strategic technologies are expected to be designated early next year. The goal of these specialized graduate schools is to cultivate master's and doctoral level professionals who can be immediately deployed in the industrial field. These graduate schools will conduct R&D projects in collaboration with companies and train professionals tailored to industry needs. The government plans to prioritize designating three semiconductor specialized graduate schools by early next year, aiming for new student admissions in the second semester of 2023. Through these semiconductor specialized graduate schools, the government envisions producing about 5,000 master's and doctoral graduates over the next decade.

Specialized graduate schools in the secondary battery and display fields will be designated starting in 2024. The government plans to carefully analyze the supply and demand status of master's and doctoral personnel in the secondary battery and display industries and designate one or two universities as specialized graduate schools in 2024. Additionally, a preliminary feasibility study will be conducted to support further designation of specialized graduate schools in the future.

Meanwhile, the National Advanced Strategic Industry Committee serves as the highest decision-making body responsible for establishing, executing, and monitoring policies and plans related to investment, talent cultivation, regulatory reform, and finance in advanced strategic industries. Ex officio members include Prime Minister Han, ministers from eight central government ministries such as the Ministry of Trade, Industry and Energy, Ministry of Economy and Finance, and Ministry of Education. The heads of the National Intelligence Service, Financial Services Commission, and Office for Government Policy Coordination are also ex officio members. The committee's private members consist of eight individuals, including Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry, Choi Soo-yeon, CEO of Naver, and Jeon Young-hyun, chairman of the Korea Battery Industry Association.

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