'Super Eul' Adds Space, Defense, and Hydrogen to Materials and Components.. 300 Billion Won Alchemist Preliminary Feasibility Study Also Activated

The government will expand the core strategic technologies of 150 key materials, parts, and equipment (hereinafter referred to as "SoBuJang") in seven major sectors such as semiconductors and displays to 200 technologies across 10 sectors by adding three new fields: space, defense, and hydrogen. On the 18th, the Ministry of Trade, Industry and Energy held the 11th SoBuJang Competitiveness Enhancement Committee meeting to review and approve the SoBuJang globalization strategy with the goal of nurturing "Super Eul (乙)" global SoBuJang companies.

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Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy stated, “Our SoBuJang industry has passed two turning points: the enactment of the Special Act on Materials and Parts in 2001 and the response to Japan’s export regulations in 2019. Now, it faces a third turning point with the global supply chain restructuring and economic security competition,” adding, “We must leverage the global supply chain ‘reshuffle’ as an opportunity for our SoBuJang industry’s global expansion.” He continued, "We will spare no bold investment and meticulous support for SoBuJang,” and added, “We will secure sufficient budgets, including efforts to extend the Special Account for Materials, Parts, and Equipment, which is scheduled to operate until 2024, through consultations with budget authorities, to fully support companies’ investments for globalization.”

At the 11th SoBuJang Competitiveness Committee meeting, along with the SoBuJang globalization strategy, five cooperation models between domestic demand and supply companies and customized support plans for the third batch of SoBuJang Leading Companies (23 companies) were finalized. Additionally, the ‘Rare Earth International Standardization Strategy’ was discussed to stabilize the supply chain.

The SoBuJang globalization strategy set the vision of “an advanced SoBuJang powerhouse leading the world’s top three manufacturing countries and top five exporters.” The government plans to implement a comprehensive support strategy based on three pillars: technological innovation, production innovation, and export expansion.

First, the existing 150 core strategic technologies in seven major sectors centered on key industries will be expanded to 200 technologies across 10 sectors, including space, defense, and hydrogen. Support will be detailed and categorized according to the characteristics of each sector’s industrial ecosystem into process-type (horizontal R&D between demand and supply companies), module-type (demand company-led R&D), and vendor-type (supply company-led R&D). For ultra-high difficulty SoBuJang technologies such as future materials and supercritical materials, a preliminary feasibility study will be conducted for the (tentatively named) SoBuJang Alchemist Project with a budget of 300 billion KRW. The development period will also be shortened by utilizing digital methods (Material DX) such as artificial intelligence (AI) for a total of 21 new materials including mobility lightweight composite resins and high-strength biodegradable fibers. Cooperation targets will be expanded to overseas demand companies and overseas clusters, focusing on sectors with limitations in global expansion. Through international joint research such as MeraNet, a SoBuJang-specialized global research platform involving 35 countries including Germany and Denmark, advanced technologies will be secured early.

A new national advanced strategic industry specialized complex will be selected in the first half of the year, and additional SoBuJang specialized complexes will be designated in the third quarter, forming an innovation-driven national industrial map where national strategic industries, SoBuJang industries, and regional specialized industries circulate positively. In this regard, the number of leading companies, the core players in SoBuJang production, will be expanded from the current 66 to 200 by 2030. Together with top domestic and international technology and market experts, technology and market growth roadmaps for relevant items and companies will be established, and long-term R&D support of over seven years integrating foundational and commercialization technologies will be provided accordingly. Furthermore, support will be given for joint research with global leading research institutions such as Belgium’s IMEC, the world’s top semiconductor research institute, while securing global market dominance through bold investments such as the SoBuJang policy fund.

Exports will also be fully supported. The U.S. and EU markets will strategically utilize the Inflation Reduction Act (IRA) and the Critical Raw Materials Act (CRMA) to expand exports of advanced SoBuJang such as battery materials and eco-friendly vehicle parts. The ASEAN market, including Vietnam, which is emerging as an alternative to China, will support exports of related SoBuJang in sectors such as automobiles, displays, and electronics in line with investment plans of domestic and local companies.

At the 11th SoBuJang Competitiveness Committee meeting, five new cooperation models between demand and supply companies discovered by the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups were also approved: autonomous driving LiDAR, ultra-low temperature mRNA vaccine cold chain-related materials and parts, ultra-precision linear motion parts, high-insulation Ritz wire for electric vehicle power modules, and semiconductor ceramic substrates and CU high-speed filling technology. Over the past three years, 59 cases have been approved, supporting R&D worth 560 billion KRW, environmental and labor regulatory exemptions, and policy financing.

Separately, the National Institute of Technology and Standards announced the preparation of a rare earth international standardization strategy and plans to introduce three standard reference materials and develop eight international standards by 2030. To ensure the reliability of rare earth quality internationally traded and cleared through customs, three standard reference materials serving as quality benchmarks will be introduced, and four test and analysis standards will be developed for analytical methods. Additionally, three recycling standards specifying rare earth component labeling and classification criteria will be promoted to support the activation of the rare earth recycling industry and establish an eco-friendly and stable rare earth supply chain.

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