22 Top SoBuJang Companies Selected... Expanding to 100 in the Next 5 Years
Annual 5 Billion KRW R&D, Linked to Over 100 Projects with Customized Support
[Asia Economy Reporter Moon Chaeseok] The government announced plans to nurture 22 world-class materials, parts, and equipment companies to respond to increased volatility in the global value chain (GVC). The goal is to increase the number of world-leading companies to 100 over the next five years.
The Ministry of Trade, Industry and Energy held the 'Materials, Parts, and Equipment Leading Companies Vision Proclamation Ceremony' at 2 p.m. on the 11th at the Sejong Convention Center and announced the first selection of 22 leading companies in materials, parts, and equipment.
The ministry plans to expand the number of leading companies to 100 by 2024, including selecting more than 20 additional leading companies within this year.
Selected companies such as Sinhwa Intertek pledged through the 'Materials, Parts, and Equipment Leading Companies Commitment' to "jointly respond to the future challenges such as digital transformation, low carbon, and eco-friendliness, and to unite efforts in corporate solidarity and cooperation, workforce development, and strengthening the materials, parts, and equipment ecosystem."
To be selected as a leading company in materials, parts, and equipment, a company must possess both the best domestic technology and future growth potential in one of the 100 core strategic technology fields. The ministry reviewed 123 applicant companies over three months starting October 12 last year and narrowed them down to 22.
By company size, 2 large enterprises, 14 mid-sized companies, and 6 small and medium enterprises were selected. By sector, 7 companies in semiconductors and displays, 7 in machinery and metals, 4 in electrical and electronics, 3 in automobiles, and 1 in chemicals were chosen.
The selected leading materials, parts, and equipment companies are characterized not only by possessing the best core strategic technology domestically but also by having abundant experience in domestic and overseas investment and global expansion.
For example, Sinhwa Intertek developed the world's first 'Barrier-less Quantum Dot (QD) Film,' a component that eliminates the need for barrier film, which is entirely exported to Japan. It holds the world's number one market share (40%) in this field and records annual sales of 60 billion KRW.
Barrier film is an essential component for anti-fouling and waterproofing in quantum dot (QD) panels, a next-generation display technology.
Over the next five years, the government plans to provide close support throughout the entire process from 'technology development → commercialization → global expansion' by linking about 100 available programs across government agencies.
During this period, up to 25 billion KRW (5 billion KRW annually) in research and development (R&D) funding will be provided to leading companies, and corporate burden fees will be significantly reduced.
Three hundred thirty-nine public institution test beds will conduct demonstration evaluations to promote the commercialization of technology development achievements. A 400 billion KRW industrial technology policy fund will be preferentially provided to actively support funds needed for mergers and acquisitions (M&A) and facility investments.
Additionally, leading companies will be actively promoted on major overseas platforms to nurture them as 'national brand companies in materials, parts, and equipment.'
The Materials, Parts, and Equipment Supply Response Support Center will be designated as the dedicated window for regulatory difficulties faced by leading companies. When a leading company applies for regulatory improvement, the regulatory high-pass system will review the possibility of improvement within 15 days.
Minister of Trade, Industry and Energy Sung Yun-mo emphasized in his congratulatory speech, "To overcome the enormous challenges before us, such as the global mega trends of GVC restructuring, digital transformation, and climate change, and to leap forward as a resilient powerhouse in materials, parts, and equipment, the technological competitiveness of leading companies is essential."
Minister Sung stated, "The government also promises to actively support the removal of growth obstacles such as world-class technology, global market entry, and regulatory exemptions so that leading materials, parts, and equipment companies can become the pivot for manufacturing innovation and transition to future industries."
An official from the ministry said, "The leading companies to be selected by the end of this year will expand the selection scope from the existing six major industries to next-generation promising new industries such as bio and energy."
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