KCCI Requests "Establishment of Dedicated Support Fund for Advanced Industries"

Submitted 31 Advanced Industry Improvement Tasks to the Government
Emphasized Extension of Tax Credit Sunset Deadline and Expansion of Eligible Targets

As global competition intensifies to secure leadership in advanced industries, the Korea Chamber of Commerce and Industry (KCCI), representing the business community, urged the government to improve systems to boost investment vitality and enhance competitiveness.

Choi Tae-won, Chairman of the Seoul Chamber of Commerce and Industry and Chairman of the Korea Chamber of Commerce and Industry, is delivering a greeting after being re-elected as the next chairman at the regular general meeting of the Seoul Chamber of Commerce and Industry held on the afternoon of February 29 at the Sang-ui Hall in Jung-gu, Seoul. Photo by Jo Yong-jun jun21@

On the 26th, KCCI announced that it submitted 31 improvement tasks to the government to strengthen the competitiveness of advanced industries.

KCCI identified these tasks through a survey targeting companies in the semiconductor, display, secondary battery, and bio sectors, which have been designated as national advanced strategic industries. The tasks include 14 common issues and 17 industry-specific issues.

In its proposal, KCCI emphasized that since advanced industries require large-scale and long-term investments, revitalizing investment is a common issue across the industry. It expressed the opinion that the sunset clause on tax credits for national strategic technologies should be extended to the level of major countries and that the scope of tax credits should be expanded. It also proposed the establishment of a dedicated support fund for advanced industries to provide flexible financial support.

Additionally, KCCI requested a proactive improvement of regulations that are uniformly applied but do not fit the characteristics of advanced industries and are difficult to implement on-site. For example, current law requires submission of a hazardous risk prevention plan, including drawings, process descriptions, and risk assessment results, if power consumption increases by 100 kW or more due to expansion or replacement of production process equipment. However, in the display and semiconductor industries, the electrical capacity of a single piece of equipment reaches 1000 kW due to large-scale production facilities, so most equipment replacements require submission of related documents, causing difficulties for companies.

In the secondary battery sector, KCCI requested a review of the Chemical Safety Agency’s notification on the hazard level of NCA (Nickel-Cobalt-Aluminum) cathode materials, a key material. The notification classifies NCA cathode materials as hazardous in some categories such as toxicity upon inhalation, skin irritation, and corrosion, but industry test results confirmed by domestic and international certification bodies show no hazard. In the bio sector, KCCI proposed establishing a public-private joint support system to ensure stable power supply to the Songdo Bio Cluster, the largest bio cooperation complex in Korea.

KCCI plans to continue identifying regulatory and investment difficulties related to advanced strategic industries semiannually and propose improvements to the government. Kang Seok-gu, head of KCCI’s Research Division, said, "Advanced industries are important for future growth and economic security, so more comprehensive support is needed," adding, "We hope the government will take proactive and bold measures to avoid falling behind in global competition."

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