Industry Reactions Vary on the 550 Trillion Advanced Industry Development Strategy

The Semiconductor and Display Industries "Expect and Welcome"

The government announced plans to establish advanced industrial complexes in 15 regions nationwide and to carry out private-led investments totaling 550 trillion won by 2026 in six major advanced industry sectors, eliciting mixed reactions across different industries.

Among the total investment amount of 550 trillion won, more than half is concentrated in semiconductors (340 trillion won) and displays (62 trillion won), which are actively welcoming industrial support. Other sectors include secondary batteries (39 trillion won), bio (13 trillion won), future vehicles (95 trillion won), and robotics (1.7 trillion won).

In particular, Samsung's investment of 300 trillion won to establish the world's largest system semiconductor industrial complex in Yongin, Gyeonggi Province, connected with existing semiconductor complexes in Giheung, Hwaseong, Pyeongtaek, and Icheon, is expected to create a 'semiconductor mega cluster' and significantly upgrade the semiconductor ecosystem. The Semiconductor Association stated in a press release, "This comprehensive support strategy is expected to help build a robust ecosystem for the domestic semiconductor industry." The display industry also expressed a welcoming stance, saying, "We appreciate the inclusion of policies for advanced display technology development and the creation of new markets such as transparent and XR (extended reality)."

On the other hand, the battery industry, which includes secondary batteries, collectively argues that the government's target is far from sufficient to achieve the global production goal of 873 GWh by 2025. The automotive industry also pointed out shortcomings such as the relatively low investment tax credit rate compared to competing countries and the lack of detailed implementation plans for the 95 trillion won investment support, despite the government's intention to foster future vehicles.

There are also criticisms that the government's advanced industry promotion strategy is overly focused on manufacturing investment and support. Moon Songcheon, an emeritus professor at KAIST, expressed regret, saying, "(The government's strategy) includes almost all advanced smokestack industries, but advanced brain industries are nowhere to be seen."

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