Ministry of Industry Announces 'Plan for Selection of 3rd Batch of SoBuJang Top Companies'
Minister Lee Chang-yang speaking at the Materials, Parts, and Equipment Competitiveness Enhancement Committee (Seoul=Yonhap News) Photo by Kim Seung-doo = Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is speaking at the 'Materials, Parts, and Equipment Competitiveness Enhancement Committee' held at the Government Seoul Office on October 18, 2022.
kimsdoo@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Junhyung] The government is selecting the 3rd batch of Sobujang Euddeum Companies targeting firms that possess core strategic technologies in materials, parts, and equipment (Sobujang). The government plans to support Sobujang Euddeum Companies with technology development and regulatory exemptions.
The Ministry of Trade, Industry and Energy announced on the 24th that it will open the "3rd Sobujang Euddeum Company Selection Plan" from the 25th until December 9. Sobujang Euddeum Companies is a system newly established last year to focus on nurturing companies possessing core strategic technologies in Sobujang. Previously, the government selected 22 companies as the 1st batch of Sobujang Euddeum Companies in January last year. In January this year, 21 companies were additionally selected as the 2nd batch of Sobujang Euddeum Companies.
The support fields include seven sectors such as semiconductors, displays, automobiles, and bio. Companies possessing any of the 150 core strategic Sobujang technologies selected by the government can apply to become Sobujang Euddeum Companies. However, they must obtain a certificate confirming the core strategic Sobujang technology through the Korea Evaluation Institute of Industrial Technology (KEIT). Additionally, they must meet research and production conditions such as investing at least 3% of their sales revenue in research and development (R&D) of core strategic Sobujang technologies.
Selection Process for the 3rd Phase of SoBuJang Top Companies. [Photo by Ministry of Trade, Industry and Energy]
The selection process for Sobujang Euddeum Companies proceeds in four stages: "document review → on-site inspection → in-depth evaluation → comprehensive evaluation." In the first stage, the Ministry of Trade, Industry and Energy plans to evaluate basic financial indicators, growth strategies, and technology development capabilities. In the second stage on-site inspection, the ministry will verify the company's capabilities including management's commitment to commercialization, technological innovation, global expansion, workforce, and equipment. Then, in the third stage in-depth evaluation, the focus will be on assessing technological innovation, commercialization and investment capabilities, and future growth potential.
In the final comprehensive evaluation stage, the results from previous stages and the policy relevance, urgency, and ripple effects of the core strategic Sobujang technologies will be reviewed. The ministry plans to finalize the selection of the 3rd batch of Sobujang Euddeum Companies by February next year after collecting opinions from related ministries for companies that pass the comprehensive evaluation.
Companies selected as Sobujang Euddeum Companies can receive various government supports. The ministry will first support dedicated R&D projects tailored to the core strategic technology fields possessed by the Sobujang Euddeum Companies. Additionally, when planning R&D projects, the ministry will reflect corporate demands to promote customized technology development and will ease the criteria for private sector cost-sharing to reduce the burden on companies.
Overseas expansion will also be supported through KOTRA's export voucher program. The ministry intends to provide cross-ministerial support to Sobujang Euddeum Companies by resolving regulatory difficulties using the "Sobujang Supply-Demand Response Center."
An official from the ministry said, "On the 18th, we expanded the number of Sobujang policy target technologies to 150," adding, "We will additionally select and support Sobujang Euddeum Companies in the expanded core technology fields to proactively respond to global supply chain shocks and restructuring."
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