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Three key areas including South Korea's heavy holdings in semiconductors
Three key areas including South Korea's heavy holdings in semiconductors
Author：netwing Time：2023-04-10 Browse：
According to the South Korean Economic Daily, the South Korean Ministry of Science announced on Thursday (6th) that by 2027, South Korea will invest a total of 16 trillion Korean won (approximately 122 billion US dollars) in research and development to cultivate research capabilities in three key technology areas: semiconductors, displays, and next-generation batteries.
According to reports, as the first step of the investment plan, the South Korean government will establish a public-private negotiation agency later this year and develop a plan to launch government funded research and development projects, including encouraging well-educated students and experts to work in related industries in a timely manner, and creating social infrastructure for effective research and development.
According to the roadmap submitted to the government meeting, funds jointly created by the government and private sector will be used to help local companies and research centers acquire cutting-edge technology and open up new markets in these three technology areas. Among them, 100 specific technologies such as semiconductor devices, free form surface displays, and hydrogen fuel cells will receive priority government funding.
As is well known in the industry, the semiconductor industry is one of the pillar industries of the South Korean economy.
According to data from the South Korean Customs Agency in early March, due to multiple factors such as excess chip inventory, South Korea's chip exports plummeted by 41.2% in the first 10 days of March. In order to reverse this situation, South Korea has been strengthening its financial and administrative support for major economic drivers such as semiconductors, hoping to restructure its growth momentum as the fourth largest economy in Asia.
In March of this year, the South Korean parliament just passed a bill aimed at providing greater tax incentives to chip manufacturers and other strategic industries.
On March 15th, South Korea announced that it will attract private investment of up to 340 trillion Korean won (approximately 261 billion US dollars) from other domestic companies such as Samsung Electronics Co. to create the world's largest semiconductor industry cluster near Seoul. According to South Korean President Yoon Seok yeol, who presided over an economic policy meeting on the same day, "We (South Korea) already have the most advanced technology and production capabilities in areas such as storage chips and OLED displays. The government must provide firm support for private sector investment to achieve further growth."
It is reported that the entire investment plan mainly revolves around six major industries: chips, displays, batteries, biotechnology, future cars, and robots. The 34 trillion won investment is only a part of the total investment scale of 550 trillion won mentioned by the South Korean government.
According to a statement from the South Korean Ministry of Trade, Industry and Energy, the funding for the 550 trillion won project planned until 2026 will mainly come from the private sector, and the government will provide tax incentives and rapid regulatory approval. In January of this year, the South Korean government proposed to increase the tax reduction rate for large enterprises investing in chips and other strategic technologies from 8% to 15%.
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