[Yoon Administration Economy] Securing Advanced Industry Super-Gap... Strengthening Semiconductor and Nuclear Power Competitiveness

New Government Economic Policy Direction

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] The Yoon Seok-yeol administration is establishing the 5th Basic Plan for Science and Technology with the goal of solving the nation's pressing issues and fostering new industries. It will support investment incentives and workforce development to secure a super-gap in advanced industries such as semiconductors, and actively support the recovery of the domestic nuclear power industry ecosystem through early job creation, including the selection of major spare parts orders.

The government announced the new administration's economic policy direction containing these details on the 16th.

From economic, diplomatic, and security perspectives, the government plans to enact the 'National Strategic Technology Development Special Act' and prepare a strategic technology roadmap to secure irreplaceable core technologies. It will focus investment on research and development (R&D) for mega projects addressing national and social challenges (such as artificial intelligence and digital transformation) and securing super-gap technologies (such as semiconductors and displays).

First, to enable rapid execution of R&D projects, the scale of R&D preliminary feasibility study projects will be expanded from the current 50 billion KRW to 100 billion KRW, and a fast track will be allowed. To promote and utilize R&D outcomes, performance indicators such as demonstration and commercialization achievements will be developed and applied, and the R&D evaluation system will be improved based on international standards. To secure leadership in advanced technologies, 'international cooperation R&D projects' will be promoted in fields requiring large-scale funding such as space, quantum, and infectious diseases.

The government will also promote science and technology-based startups in new growth sectors. A cross-ministerial '8th Technology Transfer and Commercialization Promotion Plan' will be established in the fourth quarter of this year to support startup package programs and the Super-gap Startup 1000 Project. Support will be provided for securing patents in fields where international standardization is important (such as 5G, 6G, and future vehicles), and active efforts will be made to internationalize major R&D achievements.

Additionally, a new industry development strategy will be prepared, and support will be provided to secure a super-gap in advanced industries. Specifically, national challenge tasks will be set, and detailed industry and technology support measures and plans will be designed and submitted to the Economic Ministers' Meeting in December.

In particular, for economic security strategic industries such as semiconductors, a 'National Advanced Strategic Industry Basic Plan' will be established to expand technological and production capabilities and support corporate growth. Support will be strengthened for investment incentives, workforce development, and industrial ecosystem consolidation to secure a super-gap in advanced industries such as semiconductors. This includes support for infrastructure construction such as power, water, and roads when creating semiconductor complexes, expedited permit processing to enhance investment expansion, designation of specialized universities for semiconductors, and plans to expand enrollment. To strengthen the linkage of R&D and workforce development among universities (basic research), research institutes (applied research), and companies (development research), a permanent industry-academia-research cooperation platform will also be promoted.

Strategic fostering of promising new industries such as artificial intelligence and strengthening nuclear power competitiveness will also be pursued. The construction and demonstration of a domestic AI semiconductor-based data center (NPU Farm) will be carried out by 2025, and the first basic plan for the promotion of the cross-government data industry will be established by December this year. In addition, infrastructure for commercialization in bio, autonomous vehicles, and smart logistics will be built, and basic plans for fostering future promising industries such as space, robotics, and nanotechnology will be prepared. The K-content industry foundation will be strengthened through policy finance and overseas expansion support. Efforts to spread and advance smart agriculture using data utilization and automation technologies will be conducted simultaneously. In the second half of this year, a smart farm big data platform will be established, and the Smart Farm Innovation Valley and Smart Aquaculture Cluster will be operated.

To strengthen nuclear power competitiveness, early job creation, next-generation reactor development, and export industrialization support will be promoted. In particular, early job creation through the selection of major spare parts orders will support the recovery of the domestic nuclear power industry ecosystem. Future promising technologies for carbon neutrality transition, such as innovative small modular reactors (SMR), 4th generation reactors, and hydrogen production linked to nuclear power, will be intensively developed. Aggressive order activities aiming to export 10 nuclear power plants by 2030 will also be conducted.