Top 10 Manufacturing Companies to Invest 110 Trillion Won This Year... Electric Vehicle Production Capacity to Increase 5-Fold by 2030

Ministry of Industry Holds 1st Industrial Investment Strategy Meeting

The planned facility investment amount by the top 10 manufacturing industries this year has been estimated to reach 110 trillion won. This represents a 10% increase compared to last year. The government has decided to select 20 key core investment projects and provide close support.

On the 7th, Andeokgeun, Minister of Trade, Industry and Energy, held the '1st Industrial Investment Strategy Meeting' together with representatives of the top 10 manufacturing companies and economic organizations to discuss corporate investment plans and support measures for 2024.

According to the Ministry of Trade, Industry and Energy, the total planned major facility investment amount by the top 10 manufacturing industries (semiconductors, displays, secondary batteries, bio, automobiles, shipbuilding, machinery, robots, petrochemicals, refining, steel, textiles) this year is 110 trillion won, a 10% increase from last year (100 trillion won). The government aims to achieve $35 billion in foreign investment and $700 billion in exports this year.

The Ministry stated, "Despite ongoing uncertainties such as global high interest rates and supply chain instability, the government plans to provide close support to ensure that our companies' investments proceed without disruption." To this end, 20 key core investment projects important to each industry will be selected, and ministry officials at the director level will be appointed as managers to monitor the investment project status monthly and provide dedicated support until any difficulties are resolved.

Anduk Geun, Minister of Trade, Industry and Energy, is speaking at the on-site dialogue for regulatory innovation in eco-friendly mobility held at LG Science Park in Gangseo-gu, Seoul, on the afternoon of January 30. 2024.1.30 Photo by Yonhap News

At the meeting, the government's new policy direction, the 'New Industry Policy 2.0' strategy, was also discussed. New Industry Policy 2.0 aims to successfully advance three immediate policy tasks: ▲super-gap in advanced industries ▲major transformation of core industries ▲export sophistication, while also envisioning the creation of a new industrial policy for the AI era.

For advanced industries, the government will promote three major regulatory innovation systems: ▲relaxation of existing regulations through the National Advanced Strategic Industry Committee ▲‘Advanced Industry Impact Assessment’ to evaluate the effects of newly established regulations in advance ▲development of the ‘Advanced Industry Regulation Index’ to assess regulatory levels annually. To prevent delays in large-scale manufacturing facility investments due to permit delays by nearby local governments, a ‘win-win belt’ system will be established where related local governments share the investment benefits with companies.

The government plans to support the expansion of electric vehicle production capacity from the current 350,000 units to 1.5 million units by 2030 through regulatory innovation and investment support. In the second half of this year, it will also push for the enactment of the 'Next-Generation Shipbuilding Industry Technology Innovation Act (tentative name)' to secure technological leadership. An investment support task force (TF) will be launched to closely support large-scale investments such as the S-oil Shahin Project and SK ARK Cluster.

To support $700 billion in exports, the government will provide trade insurance worth 250 trillion won this year and plans to raise export insurance limits for large-scale projects such as defense industry, nuclear power generation, and plants. The Ministry of Trade, Industry and Energy will operate an AI Industry Policy Committee co-chaired by the minister and private experts, along with a working group of about 100 members.

Meanwhile, attendees from the private sector included Kim Dongseop, President of SK Hynix; Jang Jaehoon, President of Hyundai Motor Company; Choi Juseon, President of Samsung Display; Park Jinwon, Vice President of LG Energy Solution; Kim Seongjun, Vice President of HD Korea Shipbuilding & Offshore Engineering; Yoon Jungwon, President of Celltrion; Oh Seunghyun, President of HD Hyundai Infracore; Lee Siwoo, President of POSCO; Ryu Yeol, President of S-oil; and Ahn Hongsang, Vice President of Hyosung Advanced Materials. From economic organizations, Woo Taehee, Vice Chairman of the Korea Chamber of Commerce and Industry, and Kim Changbeom, Vice Chairman of the Korea Economic Association, also attended.

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