First Announcement of This Year's 900 Billion KRW Government Project for SoBuJang

Until March 9... Half of the New Budget of 100.5 Billion Won
Support for Secondary Batteries, Semiconductors, and Carbon Neutrality Initiatives

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy announced on the 7th that it will open a public call for new support projects under this year’s materials and components technology development program from the 8th until next month 9th. It will support 52.5 billion KRW for 96 projects in fields such as secondary batteries and advanced semiconductors.

This year’s budget for the materials and components technology development program is 937.5 billion KRW, an 11.5% increase from last year’s budget. The continuing budget is 837 billion KRW, and the new budget is 100.5 billion KRW. Support is divided into three categories: key industries, advanced new industries, and carbon neutrality.

First, a public call will be made for 21 projects related to the supply chain of materials and components for key industries. 13.4 billion KRW will be invested. It supports secondary batteries, process materials and components, and the electric vehicle industry.

Major projects include the development of eco-friendly cathode materials, electrolytes, and cell technologies for lithium iron phosphate batteries. The plan is to establish an industrial ecosystem for lithium iron phosphate batteries, which have a long lifespan and low cost.

For advanced new industries, 19.5 billion KRW will be spent on 41 newly announced projects for source technologies of materials, components, and equipment. Projects include the development of silicon-based core passive components for 2.5D/3D packaging. Through this, the ministry plans to secure source technologies that respond to chip package miniaturization.

For carbon neutrality and other ESG (environment, social, governance) responses, 19.6 billion KRW will be invested in 34 newly announced next-generation technology development projects.

Projects include developing eco-friendly magnesium smelting technology using waste resources. Currently, all magnesium raw materials are imported. The goal is to build domestic infrastructure to achieve self-reliance in strategic core materials.

The materials and components technology development program has been a government-supported research and development (R&D) policy since 2000.

Among this year’s continuing budget of 837 billion KRW, the mechanical and metal sector receives the largest share at 196.2 billion KRW (23.4%). This is followed by basic chemicals at 188.8 billion KRW (22.6%), electrical and electronics at 122.8 billion KRW (14.7%), display at 110.8 billion KRW (13.2%), semiconductors at 92.8 billion KRW (11.1%), automobiles at 87.8 billion KRW (10.5%), and others at 37.5 billion KRW (4.4%).

From 2019 to 2021, the program recorded commercialization sales of 2.7 trillion KRW and private investment of 1.7 trillion KRW. A representative success case is the application of EUV (exposure equipment) photoresist to the mass production line of demand companies last year.

The Ministry of Trade, Industry and Energy plans to receive project proposals on the Korea Institute for Advancement of Technology website until next month 9th. After expert evaluations, the lead research institutions will be selected in April.

Yang Giuk, Director of Industrial Supply Chain Policy at the Ministry of Trade, Industry and Energy, said, “The new R&D projects reflect the government’s strong will to unwaveringly strengthen the competitiveness of materials, components, and equipment.” He added, “We will not only stabilize the supply chain of key industries but also encourage participation of materials, components, and equipment companies from the development stage of advanced new industries.”