[2023 National Audit] "14 Trillion Needed for Advanced Industry Specialized Complex, National Funding Only 0.3% Over 5 Years"

14.3168 Trillion Won Needed Over 5 Years
National Funding Support is 44.4 Billion Won
"At Least 1 Trillion Won Increase Needed in Next Year's Budget"

It is estimated that creating specialized advanced industry complexes will cost over 14 trillion won over five years, but the related government budget is only about 40 billion won. This amounts to just 0.3% of the required support funds.

On the 10th, Yang Hyang-ja, a member of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee and a representative of Hope of Korea, announced the results of a full survey of seven local governments with advanced industry specialized complexes. The survey revealed that 14.3168 trillion won in national funding support is needed over five years to establish the specialized complexes. Next year, 1.5002 trillion won must be invested.

The government announced the "Follow-up Plan for Fostering Advanced Industry Global Clusters" on the 18th of last month, which includes support of 543.2 billion won over five years. Of this, 400 billion won in national advanced strategic industry technology innovation loans is targeted not only at companies within the specialized complexes but also at all companies in the national advanced strategic industry sector. The amount directly supporting the specialized complexes is 44.4 billion won over five years, which is 0.3% of the total required national budget of 14.3168 trillion won.

A panoramic view of the area around Idong and Namsa-eup, Cheoin-gu, Yongin Special City, designated as a candidate site for the national advanced industrial complex for the system semiconductor cluster.
[Photo by Yongin Special City]

The budget for next year is also insufficient. The advanced industry specialized complex support budget reflected in the government's budget proposal submitted to the National Assembly for next year is 19.9 billion won. This is 1.3% of the 1.5002 trillion won needed by local governments. The infrastructure budget allocation is 15.4 billion won, which is 0.1% of the required 12.4825 trillion won.

The problem is that support is poorer compared to competing countries. When building semiconductor fabs (factories), the governments of the United States and China establish all infrastructure such as power, water supply, and wastewater treatment. Resident companies only pay usage fees. Japan, Europe, and India also support up to 50% of facility investment costs.

Representative Yang said, "The government promised full support for the specialized complexes, but the actual support budget for next year is only about 1.3% of the amount local governments need," adding, "I will do my best to increase the advanced industry specialized complex support budget for next year by at least 1 trillion won."