Government Provides 500 Billion Won Support for Future Car Development... 15% Increase from Last Year

[Asia Economy Reporter Choi Dae-yeol] The Ministry of Trade, Industry and Energy announced an integrated call for new support projects on the 9th for technology development in future automobile fields such as eco-friendly and autonomous driving this year. The total budget for this year is 499.4 billion KRW, an increase of 64.7 billion KRW compared to last year.

By sector, technology development for eco-friendly vehicles such as electric and hydrogen cars accounts for the largest share at 229.3 billion KRW. The digital sector including autonomous driving receives 138.3 billion KRW, infrastructure and commercialization support 100.3 billion KRW, and workforce training 31.5 billion KRW. A total of 311 projects will be promoted.

Considering growing consumer concerns over electric vehicle fires, technology development for battery packs that prevent thermal runaway will be pursued. Projects include developing and demonstrating export-type electric locomotives and supporting the development of core technologies using renewable synthetic fuels (e-fuels). There are also tasks to develop autonomous delivery mobility platforms and next-generation electronic architectures.

Additionally, new budgets have been allocated this year for projects securing the safety of electric and hydrogen vehicles in cooperation with local governments and for establishing a regional technology cooperation platform for hydrogen commercial vehicles. These are measures to assist small and medium-sized parts suppliers facing difficulties in future vehicle technology development due to lack of funds or time. Applications for new projects this year will be accepted until the 13th of next month.

Park Dong-il, Director of Manufacturing Industry Policy at the Ministry of Trade, Industry and Energy, said, "To enhance the competitiveness of our automobile industry, we will focus policy efforts on improving regulations and supporting technology development and enterprises for small and medium-sized parts suppliers."