Strengthening Advanced Industry Supply Chain Security... SoBuJang Investment Support Expanded to 170 Billion Won

Robotics and Defense Join Semiconductors and Batteries

Up to 50% Investment Support for SMEs and Mid-sized Companies

Yonhap News Agency

The scale of the government’s investment support program for materials, components, and equipment (commonly known as 'SoBuJang') aimed at strengthening domestic advanced industry supply chains will be expanded to approximately 170 billion won this year. The scope of support, previously focused on semiconductors and secondary batteries, has now been newly extended to include the robotics and defense industries.

On May 17, the Ministry of Trade, Industry and Energy announced that it will publicly disclose the plan and procedures for the 'National Strategic Advanced Industry SoBuJang SME and Mid-sized Enterprise Investment Support Fund Program.'

This program has been implemented since last year to expand domestic production bases for key SoBuJang items and enhance the stability of advanced industry supply chains, in response to global supply chain restructuring and growing trade uncertainties.

Last year, approximately 120 billion won in support was provided to 22 companies. As a result, a total of 556.1 billion won in site and facility investment plans were promoted, and about 80% of the supported companies invested outside the Seoul metropolitan area, which was evaluated as having a positive effect on revitalizing regional economies.

This year, the national budget has increased by 30 billion won to reach 100 billion won, compared to last year. Including local government funding, the total support will amount to approximately 170 billion won. Given that the average support per company last year was about 5.5 billion won, the Ministry of Trade, Industry and Energy estimates that around 30 companies will benefit from the program this year.

The scope of eligible recipients has also expanded. In addition to the four existing advanced strategic industries—semiconductors, secondary batteries, bio, and displays—this year, robotics and defense industries have been newly included. As a result, SMEs and mid-sized SoBuJang companies producing stable supply items or strategic materials for a total of six advanced strategic industry sectors are now eligible for support.

The government plans to provide support of up to 50% of the investment amount for new domestic site and facility investments, depending on company size and the nature of the investment.

Applications for the program can be submitted via the e-Naradoum website until 4:00 p.m. on July 17. Details of the announcement can also be found on the websites of the Ministry of Trade, Industry and Energy and the Korea Institute for the Advancement of Technology (KIAT).

The Ministry will also hold an information session for companies and local governments interested in participating in the program at the International Conference Room of Korea Technology Center in Gangnam-gu, Seoul, on May 27, providing guidance on detailed support and application procedures.

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