Choo Kyung-ho: "Space, Defense, Hydrogen as Core SOBOJANG Strategic Technologies... 2.3 Trillion Won Investment in R&D"

Committee for Strengthening Competitiveness of So-Bu-Jang
Additional Specialized Complexes to be Designated in July

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced on the 18th that "core strategic technologies will be further expanded to 200 items across 10 major sectors, including future-leading industries such as space, defense, and hydrogen."

On the same day, Deputy Prime Minister Choo presided over the Committee for Strengthening Competitiveness of Materials, Parts, and Equipment at the Government Seoul Office and made these remarks.

He explained, "The government plans to support improvements in technology, production, and export competitiveness to turn the 'uncertainty' caused by the global supply chain restructuring into an 'opportunity' for enhancing the competitiveness of domestic materials, parts, and equipment (SoBuJang) companies," adding, "We will promote the development of SoBuJang technologies that lead future markets."

Accordingly, the current 150 core strategic technologies in seven major sectors?semiconductors, displays, automobiles, machinery and metals, electrical and electronics, basic chemicals, and bio?will be expanded by adding space, defense, and hydrogen to become 200 core strategic technologies across 10 major sectors. SoBuJang core strategic technologies are those that perform key functions within the value chain of the SoBuJang industry. Companies possessing these technologies are eligible to apply for the top-tier company status and can receive benefits such as exemptions from environmental and employment regulations and tax credits for domestic and overseas investments or acquisitions in SoBuJang companies.

Additionally, 2.3 trillion KRW will be invested in SoBuJang research and development (R&D) in 2023, and the budget related to SoBuJang will continue to be expanded going forward.

To enhance the production capacity of SoBuJang companies, five specialized SoBuJang complexes located in Yongin (semiconductors), Cheonan (displays), Cheongju (secondary batteries), Jeonju (carbon materials), and Changwon (precision machinery) will be additionally designated by July. Furthermore, the government plans to revitalize SoBuJang clusters by providing investment-related advisory services such as legal and accounting support to resident companies.

Customized export support by region will also be strengthened. Deputy Prime Minister Choo stated, "Since cathode active materials are excluded from 'parts' under the U.S. Inflation Reduction Act (IRA), the necessity for cathode material companies to enter the North American market is low. Moreover, producing in Korea, which has a Free Trade Agreement (FTA) with the U.S., is advantageous for meeting mineral requirements," adding, "We will utilize the IRA as an opportunity to expand exports and support the production expansion of domestic secondary battery material companies and their entry into the North American value chain."

To enter the European Union (EU) market, where the importance of eco-friendly technologies has increased, the government will advance alternative process technologies such as eco-friendly refining and smelting.

The government also decided to leverage the opportunity created by the restoration of Korea-Japan relations following the March summit this year to strengthen SoBuJang competitiveness by promoting cooperation in supply chain areas beneficial to both countries. Deputy Prime Minister Choo explained, "We will jointly respond to major global supply chain issues through information sharing and explore cooperation areas such as joint development of advanced and supercritical materials by academia, industry, and research institutes in both countries," adding, "We will establish cooperation models between demand and supply companies of both countries, including attracting global SoBuJang companies to the Yongin semiconductor cluster."

In addition, the government discussed an international standardization strategy for rare earth elements. Demand for rare earths, which are used as core materials in next-generation industries such as electric vehicle motors, is expected to continuously increase. However, despite small variations significantly affecting material properties, there is currently no standard reference material or analytical method to determine elemental content, making it difficult to ensure consistent quality. Deputy Prime Minister Choo stated, "We plan to establish standard reference materials that serve as benchmarks for comparing rare earth content and systematically organize analytical methods," adding, "We will specify component labeling for products containing rare earths to facilitate smooth recycling."

Choo Kyung-ho, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance.

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