"Increasing Exports and Investment"… Eliminating Killer Regulations and Providing Funding for Acquisitions of Overseas Advanced Companies

Major Industrial Policy Directions for the Second Half of the Year

The government, focusing on boosting economic vitality in the second half of the year, will provide 184 trillion won in trade finance to export companies and take measures to improve killer regulations and support funding for mergers and acquisitions (M&A) of overseas advanced companies to expand investment.

On the 11th, the Ministry of Trade, Industry and Energy announced in the 'Major Industrial Policy Directions for the Second Half of the Year' that it will focus on enhancing economic vitality in the second half by promoting policies aligned with the current recovery trend of the real economy.

First, to ensure exports turn positive early, comprehensive government support will be concentrated. To prevent any company from being unable to export due to financial issues, a record-high 184 trillion won in trade finance will be supplied in the second half. Key export projects will be identified and managed, focusing on major export sectors such as Middle East LNG carriers and ASEAN electric vehicles, and achievements will be concretized in connection with official visits.

To revitalize investment, the government will also tackle the 'eradication of killer regulations.' Some regulatory and institutional improvements, mainly in the semiconductor sector, such as easing floor area ratio regulations in semiconductor complexes and establishing facility standards for hazardous chemicals specialized for semiconductors, have already been completed. This month, a permit timeout system will be implemented, whereby if permits are not processed within a maximum of 60 days without special reasons, the permit will be deemed approved. Discussions will be held with related ministries on laws such as the Chemical Substance Control Act, the Chemical Safety Act, and the Serious Accidents Punishment Act through the Prime Minister’s Office Killer Regulation Improvement Task Force (TF) to improve them realistically.

To expand investment in advanced industries, the government will actively promote measures to prepare policy funds to be used as seed investments. Tax support will be expanded in advanced industry sectors such as biopharmaceuticals, and more than 10 trillion won in financial support will be provided for acquisitions of advanced companies in semiconductors, batteries, and other fields. Foreign investment in advanced industries and supply chains for materials, parts, and equipment will be actively attracted, and dedicated research and development (R&D) for foreign-invested companies will be newly established. The strategy is to continue the record-high foreign investment performance of the first half into the second half. Support for returning companies will also be strengthened to at least the level of foreign investment to promote reshoring in advanced industries.

Policy capabilities will also be concentrated on regions. With the full-fledged era of local governments, support will be provided to ensure that investment projects worth 87 trillion won across 14 metropolitan cities and provinces are implemented on time. Opportunity development zones will be introduced to provide exceptional benefits, and in July, specialized complexes for advanced strategic industries (semiconductors, displays, secondary batteries, etc.) and specialized complexes for materials, parts, and equipment (future cars, bio, semiconductors, etc.) will be selected and designated. Additionally, in the second half of this year, the 'Future Car Parts Conversion Special Act' will be enacted to expand the scope of future car technologies, provide one-stop support for business restructuring, and offer special measures to promote domestic and foreign investment (foreign investment, local investment, reshoring).

Furthermore, to secure a technological super-gap, the R&D system will be reorganized. The practice of fragmented R&D support will be eliminated, and 70% of the budget will be invested in 40 major medium- to large-scale projects aimed at securing super-gap technologies in advanced industries. Next year, new joint research support programs will be established with world-class universities such as MIT and Yale, expanding joint research with leading overseas universities. The system will be improved to ensure timely supply of talent in advanced industries, and efforts to attract overseas talent will be strengthened. Based on the achievements of summit diplomacy, cooperation with the United States, Japan, the Middle East, and others will be reinforced, and a stable supply chain will be established by advancing early warning systems to prevent disruptions in exports and production.

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