'Next-Generation Process Technology' Added to Root Industry... Future-Oriented Structural Transformation

Root Industry Act Promulgated on the 14th, to be Enforced by Year-End... Expansion of Material and Technology Scope and Strengthening of Financial Support

[Sejong=Asia Economy Reporter Kwon Haeyoung] The scope of technologies in the root industry, which receives government support to foster the foundation of manufacturing competitiveness, will be expanded. The plan is to transform the root industry into a future-oriented structure in response to the 4th Industrial Revolution and supply chain restructuring.

According to the Ministry of Trade, Industry and Energy on the 15th, the amendment to the "Act on the Promotion and Advancement of the Root Industry" (hereinafter referred to as the Root Industry Act), which includes these details, was approved at the National Assembly plenary session on the 21st of last month and was promulgated on this day. The law will take effect from December 16.

The main contents of this amendment are threefold: ▲expansion of materials and technologies in the root industry ▲expansion of support ▲establishment of a system for verification and selection of root companies.

First, 'next-generation process technologies' such as injection molding, press, precision machining, robots, and sensors were added to the scope of materials and technologies. This aims to diversify materials (metal → plastic, ceramic, etc.) and make them intelligent. Previously, only six 'basic process technologies' related to metal materials such as casting and molds were included.

Support for 'root industry specialized complexes,' which are clusters of root companies, was also expanded to include production and supply chain stabilization, as well as installation and operation of convenience facilities for workers.

Financial support for root companies was also expanded. First, the Korea Trade Insurance Corporation was added to institutions offering credit guarantees and preferential guarantee conditions, in addition to the existing Korea Credit Guarantee Fund and Korea Technology Finance Corporation. Additionally, the Small and Medium Business Corporation, Export-Import Bank of Korea, and Korea Development Bank were newly established as institutions offering preferential loan and funding conditions.

Furthermore, legal grounds were established for the 'root company verification' system, which allows confirmation of eligibility for preferential support related to the root industry, and the 'Good Workplace Root Company' system to promote the influx of new personnel such as youth.

An official from the Ministry of Trade, Industry and Energy stated, "We will steadily proceed with the revision of subordinate statutes to ensure smooth implementation of the amendments, such as the expansion of the scope of materials and technologies and the establishment of the root company verification and selection system." He added, "We will actively explain and promote the changes to related associations, root companies, and local governments."