Government to Invest 100 Billion KRW in R&D for Small and Medium Steel Companies

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will invest 100 billion KRW to support small and medium-sized steel companies. Through this investment, the government aims to elevate the capabilities of small and medium-sized enterprises to a global level and serve as a catalyst for the steel industry's resurgence.

The Ministry of Trade, Industry and Energy announced on the 26th a support plan for the "Steel Industry Rebound Technology Development Project," which will invest a total of 107.6 billion KRW over the next five years from 2021 to 2025 to support 23 research and development (R&D) tasks for small and medium-sized steel companies.

This project is divided into three main areas: ▲ development of high value-added technologies ▲ development of eco-friendly resource circulation technologies ▲ establishment of industrial shared assets.

First, in the high value-added technology development area, up to 5.6 billion KRW per task will be provided for 15 new tasks related to the development of materials and processing technologies for small-lot, multi-variety production that can create new markets such as future vehicles and new energy industries. In the eco-friendly resource circulation technology development area, up to 4.2 billion KRW per task will be invested in 4 new tasks related to eco-friendly and resource circulation technologies to actively respond to environmental issues such as carbon neutrality and fine dust. In the industrial shared assets establishment area, up to 6.8 billion KRW per task will be provided for 4 new tasks aimed at strengthening the competitiveness of the steel cluster ecosystem, including the establishment of demonstration equipment and the operation of consultative bodies linked to commercialization in three regions: Pohang, Gwangyang, and Dangjin.

An official from the Ministry of Trade, Industry and Energy stated, "Strengthening the competitiveness of small and medium-sized steel companies is essential to fortify the entire ecosystem in the domestic steel industry, which is centered on large corporations. Through this project, we plan to focus on nurturing small and medium-sized steel companies with global competitiveness that can succeed in the world market after the COVID-19 crisis."

The institutions selected for new tasks will be finalized in March after evaluation. Detailed information can be found on the websites of the Ministry of Trade, Industry and Energy and the Korea Institute for Advancement of Technology.