Synopsis
On February 4, South Korea's industry ministry announced a significant investment of 1.18 trillion won ($809.3 million) to enhance materials and parts technologies. This initiative will bolster the global standing of crucial sectors, including semiconductors and biopharmaceuticals.Key Takeaways
- Investment of 1.18 trillion won for materials technology.
- Focus on key industries: semiconductors, batteries, biopharmaceuticals.
- R&D budget increased by 71.3% to stabilize supply chains.
- Record exports from FTZs hit $14.9 billion.
- FTZs offer economic advantages for manufacturing and trade.
Seoul, Feb 4 (NationPress) The Ministry of Industry announced on Tuesday that it will allocate 1.18 trillion won ($809.3 million) this year to advance technologies for materials and components. This initiative aims to boost the global competitiveness of key industries, including semiconductors, rechargeable batteries, and biopharmaceuticals.
This investment represents a 3.2 percent increase compared to last year's figures, as reported by the Ministry of Trade, Industry and Energy.
Specifically, the ministry plans to invest 136.1 billion won in developing materials and components for the chip sector, 101.9 billion won for the display sector, 100.9 billion won for the rechargeable battery sector, and 102.8 billion won for the biopharmaceutical sector, according to Yonhap news agency.
Additionally, 305.3 billion won will be directed towards the creation of advanced and eco-friendly materials and components for machinery and metal industries, 111.3 billion won for chemical companies, and 89 billion won for automotive firms.
The ministry will also invest 62.8 billion won and 20 billion won for the aerospace and hydrogen industries, respectively.
The budget for research and development (R&D) projects will see a 71.3 percent year-on-year increase, reaching 131.2 billion won this year to bolster the supply chain of materials, parts, and equipment, according to the ministry.
Furthermore, 302.7 billion won will be allocated to stimulate private investments in technological development projects.
In a related note, South Korea achieved a record export value of $14.9 billion from its free trade zones (FTZs) last year, driven by robust global demand for automobiles, ships, and semiconductors, as stated by the industry ministry on Tuesday.
The total exports from 13 FTZs across the nation surged by 22.5 percent from $12.1 billion in 2023, marking an all-time high, according to the Ministry of Trade, Industry and Energy.
This also signifies the fourth consecutive year that exports have surpassed $10 billion.
South Korea operates seven industrial complex type FTZs in areas such as Masan, Gunsan, and Ulsan, along with six airport and seaport types, including those near Incheon International Airport and the ports in Busan and Pohang.
FTZs offer special economic advantages, including various tax and tariff benefits, to promote more freedom in manufacturing, logistics, and trade.
