Government Provides 10 Billion KRW Support for R&D of Companies Entering New Industries

For SMEs Approved for Business Restructuring... Selected Companies Receive Up to 800 Million KRW Annually for Up to 3 Years

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will support 10 billion KRW this year to promote new technology development (R&D) projects for business restructuring approval companies entering new industries. Selected companies will receive up to 800 million KRW annually for up to three years.

The Ministry of Trade, Industry and Energy announced on the 21st that it has made the first public announcement of the 'New Industry Entry Business Restructuring R&D' project through the Korea Institute for Advancement of Technology until the 26th of next month.

This project targets small and medium-sized enterprises and mid-sized companies that have received approval for business restructuring plans under the 'Special Act on Vitalization of Corporate Activities (Gihwal Act)' as a 'new industry entry type.' It supports core technology development and customized consulting services to promote the entry of approved companies into new industries. The aim is to back innovative activities of companies boldly challenging business restructuring such as digital transformation, eco-friendly innovation, and new industry entry instead of existing business fields.

The Ministry of Trade, Industry and Energy will proceed with all tasks through an open competition method, and the support scale per company is up to 800 million KRW annually (an average of 500 million KRW per year), with a support period of up to three years. New project performing institutions will be selected through evaluation, with about 10 companies to be chosen in March, and the second announcement is planned for the second quarter.

Additionally, a cooperative structure between the business restructuring and business conversion systems has been established by including companies recommended by the Ministry of SMEs and Startups as excellent business conversion companies in the support targets.

Hwang Suseong, Director of Industrial Policy, stated, "For the main industries to overcome structural limitations and regain vitality, business restructuring challenging new industry entry needs to spread throughout the industrial ecosystem." He added, "Especially in an era where the competitiveness of companies and the nation depends on eco-friendly technology and digital capabilities, we will actively promote the activation of business restructuring with the acceleration of digital and eco-friendly transformation as the top priority."