Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
Korea to invest W8.4 tril. in future mobility, bio, non-memory chips
President Moon Jae-in delivers a speech on “Manufacturing Renaissance Vision,” a plan to develop the nation's manufacturing industry at an event in Ansan, Gyeonggi Province, Wednesday. Yonhap
By Kwak Yeon-soo
By Kwak Yeon-soo
The government plans to invest 8.4 trillion won ($7.1 billion) to foster future mobility, biopharmaceuticals and non-memory chips by 2030, to help revitalize Korea's sagging manufacturing industries, the Ministry of Trade, Industry and Energy said Wednesday.
The latest move aims to revive the manufacturing sector by fostering new growth engines and make it a frontrunner of the Fourth Industrial Revolution.
Manufacturing has been a major sector of export-oriented Korea, but it has been struggling with slow demand and intense competition from China and Southeast Asian countries.
“Amid uncertainties, we need to draw a new path in the manufacturing sector,” President Moon Jae-in said. “By restructuring the manufacturing sector and developing innovative engines, we can become the world's fourth-largest trader in the future.”
Moon added that “smart,” “eco-friendly” and “convergence” were the key words that will drive industrial innovation.
Korea's exports stood at $605.5 billion in 2018, making it the sixth largest trader in the world.
The announcement is a follow-up to the President Moon Jae-in administration's plan unveiled in December last year outlining structural changes to improve competitiveness.
The nation will foster its infrastructure for big data, artificial intelligence (AI) and fifth-generation (5G) networks to nurture the growth of smart factories.
The trade ministry said the government will build 30,000 smart factories to house small-and mid-sized enterprises by 2022, as well as 20 smart industrial complexes. About 2,000 AI-based factories will be also built by 2030.
Both local and foreign companies will be given incentives if they invest locally instead of going overseas. Details regarding incentives will be announced in the near future, according to the trade ministry.
To promote convergence between the manufacturing and services industries, the government said it will ease regulations to support companies' release of innovative products on the market.
The convergence of the two industries includes creating innovations such as caretaker robots and smart appliances.
The government will additionally spend 5 trillion won to help companies restructure and innovate.