SobuJang Supplementary Budget R&D Project Generates 600 Billion Won Economic Effect in One and a Half Years

[Sejong=Asia Economy Reporter Kwon Haeyoung] It has been revealed that approximately 600 billion KRW worth of economic effects have been generated just one and a half years after launching the supplementary budget research and development (R&D) project in the materials, parts, and equipment (SoBuJang) sector.

On the 28th, the Ministry of Trade, Industry and Energy held a 'SoBuJang R&D Demand-Supply Company Meeting' chaired by Minister Sung Yun-mo at Mikoceramics, a SoBuJang company located in Anseong, Gyeonggi Province, where they disclosed the achievements of this project.

Following Japan's export restrictions announced in July 2019, the government prepared the 'SoBuJang Competitiveness Enhancement Measures' on August 5, just one month later, and decided to urgently inject supplementary budget funds into areas where securing independent technology was urgent. Subsequently, from September of the same year, they began full-scale support for technology development and commercialization.

As a result of compiling the outcomes of three major R&D projects within the supplementary budget?materials and parts technology development, manufacturing equipment demonstration support, and semiconductor/display performance evaluation support?sales of 215.1 billion KRW, investments of 382.6 billion KRW, employment of 385 people, and 271 patent applications were generated. This is an interim tally of results up to the end of last year since the project began, and the final results, to be compiled sequentially as R&D tasks conclude by 2024, are expected to be much greater.

A total of 248.5 billion KRW was invested in these three major projects from 2019 to 2020.

In addition to R&D, the Ministry of Trade, Industry and Energy stated that other SoBuJang policies such as mergers and acquisitions (M&A), investment attraction and return, and designation of specialized complexes are also showing results.

First, advanced SoBuJang technologies were secured through seven overseas company M&As. Among these, five correspond to the top 100 core strategic SoBuJang technologies. The number of SoBuJang returnee companies increased significantly from only two in 2017 to 14 in 2019 and 18 in 2020. As for SoBuJang specialized complexes, five locations have been designated as of February this year: Gyeonggi (semiconductor), Chungbuk (secondary battery), Chungnam (display), Jeonbuk (carbon materials), and Gyeongnam (precision machinery).

Minister Sung emphasized at the meeting, "These achievements are thanks to the technology development and commercialization efforts of domestic SoBuJang companies and active solidarity and cooperation among companies. It is especially meaningful because results were achieved in items that were considered 'walls of impossibility' during Japan's export restrictions."

Companies attending the meeting proposed to the government to strengthen sales linkage for products developed after R&D projects conclude, pioneer sales channels for companies that succeeded in technology development and commercialization to enter overseas markets, foster SoBuJang specialized personnel, and expand tax credits for facility investments.

SK Hynix (demand company) and Mikoceramics (supply company) signed a business agreement regarding high-temperature heaters for semiconductor CVD equipment at this meeting. Both companies plan to expand cooperation in technology development, performance evaluation, and procurement processes.