[Specialized Complex] What Are the Differences Between Advanced Strategic Industry and SoBuJang Specialized Complexes?

On the 20th, the government announced the selection of national advanced strategic industry and SoBuJang (materials, parts, and equipment) specialized complexes that will receive focused support in infrastructure, research and development (R&D) technology, and tax benefits, clarifying the differences between the two specialized complexes.

First, the national advanced strategic industry specialized complexes for three sectors?semiconductors, displays, and secondary batteries?and the SoBuJang specialized complexes are clearly distinguished by their legal basis and implementation objectives. The national advanced strategic industry specialized complexes are based on the "National Advanced Strategic Industry Special Act," enacted in August last year, aiming to achieve a technological super-gap in advanced strategic technologies.

On the other hand, the SoBuJang specialized complexes are based on the "SoBuJang Special Act," which was expanded and revised in May, with the purpose of promoting technological self-reliance in SoBuJang and internalizing supply chains. Due to the differences in legal basis and objectives, differences also arose during the candidate site evaluation stage. The national advanced strategic industry specialized complexes focused on securing a super-gap by evaluating the presence of leading companies, new investment plans, and the potential for industrial ecosystem development. In contrast, the SoBuJang specialized complexes focused on evaluating plans to nurture and strengthen the SoBuJang corporate ecosystem for technological self-reliance and supply chain internalization.

The national advanced strategic industry specialized complexes are limited to the three advanced strategic technology sectors designated by the National Advanced Strategic Industry Committee: semiconductors, displays, and secondary batteries. Bio was added belatedly to the national advanced strategic industry category in May and was therefore excluded from this specialized complex selection process. The designation of a bio specialized complex, which was excluded this time, is planned to be pursued after additional discussions in the second half of the year. The SoBuJang specialized complexes do not impose any particular industrial sector restrictions.

Unlike the national advanced strategic industry specialized complexes, which were designated for the first time this time, the SoBuJang specialized complexes were initially designated in five locations in February 2021 and have been additionally designated this time. As additional SoBuJang specialized complexes have been designated, the government also states that it is open to further additional designations of advanced strategic industry and SoBuJang specialized complexes through additional public competitions if there is demand. The government evaluates the effects of designating specialized complexes positively. Since the designation of SoBuJang specialized complexes in February 2021, the annual production value of these complexes increased by 26% over two years, and exports rose by 47%. Based on facility investments, production expansion, and R&D by major anchor companies in the specialized complexes, there was also an agglomeration effect, with 261 new resident companies added to the complexes over the past two years.

The newly selected advanced strategic industry and SoBuJang specialized complexes will commonly receive government support for ▲technology development, test beds, and workforce training ▲infrastructure such as power and water supply ▲and other detailed requests specific to each complex. Exemptions from preliminary feasibility studies (PFS), the permit timeout system?which deems permits approved if not processed within 60 days?and special designations as national industrial complexes are support items applied only to the advanced strategic industry specialized complexes. The SoBuJang specialized complexes will receive support such as expedited PFS processing and expedited permit processing.