Government to Focus Export Budget Support in First Half of Year... Close Support for 100 Trillion Won Private Investment

Ministry of Industry Announces Support Measures for Manufacturing Sector at Emergency Economic Ministers' Meeting

[Asia Economy Reporter Park Sun-mi] The government will focus export budget support in the first half of the year to respond to export and investment contraction, and closely support the top 10 manufacturing industries, including semiconductors, which plan investments worth 100 trillion won this year.

On the 3rd, the Ministry of Trade, Industry and Energy announced export and investment support measures by manufacturing industry sector at the Emergency Economic Ministers' Meeting and Export Investment Countermeasures Meeting. The government plans to consolidate cross-ministerial export capabilities to achieve an export surplus by reaching $680 billion in exports. Two-thirds of the export support budget will be concentrated in the first half of the year, when exports are expected to be most difficult. This year, a record-high 360 trillion won in trade finance will be supplied, and support will be provided to facilitate easy acquisition of overseas certifications, the first gateway for exports.

Investment in three major areas?facilities, research and development (R&D), and foreign investment?will also be revitalized. In particular, an advanced strategic industry specialized complex will be designated in June, and a win-win incentive system and permit timeout system will be introduced for rapid licensing. A total of 81 trillion won in policy finance will also be supplied to support manufacturing facility and R&D investments.

At this meeting, cross-ministerial support measures to expand exports and investments were discussed by reviewing the conditions of each industry in response to recent export and investment contractions. For semiconductors, where Korean companies plan investments worth 47 trillion won, support for fabless and materials, parts, and equipment (SoBuJang) sectors will be strengthened. To this end, a preliminary feasibility study (PFS) worth 1.5 trillion won will be promoted to secure three major system semiconductor technologies including power semiconductors, automotive semiconductors, and advanced packaging.

For displays, three new next-generation display markets?transparent, automotive, and ultra-small?will be created, and a 1 trillion won PFS will be promoted to secure technology leadership in inorganic light-emitting displays. For batteries, active support will be provided for companies’ investment realization through policy funds worth 5.3 trillion won, which accounts for two-thirds of private investment, designation of advanced industry specialized complexes, and establishment of a battery academy.

Additionally, 1.4 trillion won will be supported for automotive R&D, including Level 4 autonomous driving commercialization technology, until 2027. Also, to ensure shipbuilding companies do not face disruptions in production and exports, support for securing manpower will be provided, such as paying a hiring subsidy of 600,000 won per month for six months when recruiting shipbuilding workers. Furthermore, domestic visa issuance procedures will be shortened to one month, and foreign workforce introduction will be supported by expanding the foreign workforce quota from 20% to 30%.

For the steel industry, policy finance worth 3.6 trillion won will be supported focusing on eco-friendly facility investments while minimizing corporate burdens related to new trade norms. Minister Lee Chang-yang said in his opening remarks, “While consolidating capabilities for export recovery, we plan to support continuous facility and R&D investments in preparation for the economic recovery period.” He added, “We will promptly prepare a comprehensive export-plus plan that consolidates cross-ministerial export support capabilities and closely cooperate with the National Assembly to ensure the prompt legislation of the temporary investment tax credit system and the increase of tax credits for national strategic technologies.”

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