Semiconductors, Renewable Energy, and Balanced Growth... Ministry of Industry Launches Seven Major National Policy Initiatives

$170 Billion in Semiconductor Exports, Top Five in Global Automobile Production
Completion of U-Shaped Power Grid by the 2040s
Expansion of AI Factories and Humanoid Robots
RE100 Industrial Complexes and Structural Reform for Carbon Neutrality in Parallel

The Ministry of Trade, Industry and Energy will begin implementing seven major national policy initiatives focused on innovation in key industries such as semiconductors, batteries, and automobiles; fostering advanced industries; building an "energy expressway"; and a large-scale transition to renewable energy. Through these efforts, the government aims to achieve a leap into the top four global manufacturing nations, enable a major energy transition, establish unwavering economic security, and deliver tangible results that citizens can feel.

Of the 123 national policy tasks finalized at the Cabinet meeting on September 16, seven are overseen by the Ministry of Trade, Industry and Energy: ▲ discovering and fostering new growth engines ▲ innovating key industries ▲ strengthening trade and economic security ▲ building an energy expressway ▲ large-scale transition to renewable energy ▲ economic structural reform for carbon neutrality ▲ nurturing regional growth hubs.

In the area of discovering new growth engines, the government will expand to 500 AI factories and begin mass production of humanoid robots, aiming to raise the industrial AI utilization rate to 70% by 2030. By establishing biofoundries and commercializing advanced medical devices, the government plans to increase bio-health exports by more than 35%. In the defense, aerospace, and drone sectors, competitiveness will be strengthened through the development of core materials, parts, and equipment technologies. Climate tech industries such as clean hydrogen and used batteries will also be fostered as new growth drivers.

For innovation in key industries, the government has set 2030 targets of achieving $170 billion in semiconductor exports, ranking among the top five in global automobile production, and securing a 25% market share in secondary batteries. The steel and petrochemical industries will shift toward low-carbon, high-value-added production, focusing on hydrogen-reduced steelmaking and specialty materials. The government will also promote a win-win model by expanding technology transfer and supply chain cooperation between large corporations and small and medium-sized enterprises.

In the area of trade and economic security, the government will prepare for an era of $1 trillion in exports by diversifying export items, markets, and business entities. Cooperation with major trading partners such as the United States and the European Union will be strengthened, while expansion into the Global South will be pursued. At the same time, the government will increase the stockpile of rare metals to cover 180 days and build dedicated storage facilities to enhance supply chain stability.

Yonhap News Agency

As part of its energy transition strategy, the government plans to accelerate the construction of a high-voltage direct current (HVDC) transmission line along the west coast and complete a U-shaped power grid across the Korean Peninsula by the 2040s. The government will also promote the export-oriented transformation of the energy industry through AI-based power grid efficiency, expansion of energy storage systems (ESS), and fostering clean hydrogen and heat pump industries.

The renewable energy supply target for 2030 will be raised from the current 78 GW. The government will diversify locations for offshore wind and solar power, ease or eliminate setback distance regulations, and introduce a contract market system as part of institutional reforms. In addition, RE100 industrial complexes will be established in renewable energy clusters to promote balanced regional growth.

For carbon neutrality, the government will support large-scale R&D in key industries such as steel and petrochemicals, and establish a one-stop support system for companies to respond to overseas carbon border taxes. The government will also promote the spread of a circular economy model-including remanufacturing, reuse, and recycling-to support sustainable growth.

The balanced growth initiative includes the second phase of relocating public institutions to regional areas, establishing an RE100 industrial complex in Saemangeum, and building a Southern Industrial Belt to foster regional innovation and growth hubs.

Minister of Trade, Industry and Energy Lee Jungkwan stated, "We will work closely with relevant ministries, local governments, and the private sector to enhance the effectiveness of these national policy initiatives, and will regularly review and release results in order to bring about real change in the industrial sector and in people's daily lives."

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