Choo Kyung-ho: "Additional Designation of Specialized Complexes for Bio, Semiconductors, and Other Materials, Parts, and Equipment"

The government has additionally designated five regions, including Gwangju, Daegu, and Osong, as specialized complexes for materials, parts, and equipment (SoBuJang). These SoBuJang specialized complexes are established to create a cooperative ecosystem among SoBuJang companies centered around key leading enterprises.

On the 20th, the Ministry of Economy and Finance held the 'Materials, Parts, and Equipment Competitiveness Enhancement Committee' and announced the designation of five regions as SoBuJang specialized complexes: Gwangju (future cars, autonomous vehicle parts), Daegu (future cars, electric vehicle motors), Chungbuk Osong (bio, raw and subsidiary materials for biopharmaceuticals), Busan (semiconductors, power semiconductors), and Gyeonggi Anseong (semiconductors, semiconductor equipment). This designation comes two and a half years after the government first designated five SoBuJang specialized complexes in 2021.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said, "Over the past two years, there have been significant economic effects such as an increase of about 5,000 in employment, 26% in production, and 47% in exports," adding, "The need for additional designation in semiconductors has grown to respond to global competition, and the necessity to foster new industries such as future cars and bio has also increased."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is speaking at the Committee for Strengthening Competitiveness of Materials, Parts, and Equipment held at the Government Seoul Office Building on the 20th. Photo by Hyunmin Kim kimhyun81@

Through this new designation, the government plans to raise the self-sufficiency rate of electric vehicle motors from the current level of 50% to about 90%, thereby localizing core components of future cars. It also aims to achieve self-sufficiency in raw and subsidiary materials essential for pharmaceutical manufacturing processes. The semiconductor specialized complexes will promote strengthening the domestic semiconductor ecosystem, including semiconductor equipment and power semiconductors.

A total of 6.7 trillion KRW in new corporate investments is expected for the establishment of these specialized complexes. Gwangju, designated as a future car specialized complex, will see investments of 1.9 trillion KRW from LG Innotek, Kia, GGM, and others; Daegu will have 1.5 trillion KRW invested by Seonglim Advanced Industry and Kyungchang Industry, among others. In Chungbuk Osong, a bio specialized complex, LG Chem and Daewoong Pharmaceutical will invest 1.6 trillion KRW; in Busan, a semiconductor specialized complex, SK Powertech will invest 800 billion KRW; and in Gyeonggi Anseong, KC Tech and Mico Ceramics will invest 900 billion KRW.

To foster the specialized complex ecosystem, the government will support joint research and development (R&D), testbeds, commercialization, technology independence, support for companies returning domestically, and local investment to attract companies within the complexes. It will also form dedicated task forces for each specialized complex to provide one-stop support for regulatory improvements and corporate requests. Along with the seven newly designated advanced strategic industry specialized complexes announced on the same day in Yongin and Pyeongtaek in Gyeonggi Province and Saemangeum in Jeonbuk, the new SoBuJang specialized complexes are expected to create synergy in establishing the domestic SoBuJang ecosystem and securing global competitiveness.