'681 Trillion Won Private Investment' Advanced Strategic Industry Specialized Complex, Exempt from Preliminary Feasibility Study and Unlimited National Funding Support

Yongin National Industrial Complex 10 Trillion Won Public Institution Preliminary Feasibility Exemption
Next Year Advanced Strategic Industry R&D Budget Increased by 10%

Prime Minister Han Duck-soo is speaking at the meeting of the National Advanced Strategic Industry Committee held at the Government Seoul Office in Jongno-gu, Seoul, on the morning of the 27th.
[Image source=Yonhap News]

The government plans to exempt preliminary feasibility studies by public institutions for certain advanced strategic industry specialized complexes and abolish the limit on the number of projects eligible for national funding support. This large-scale incentive aims to promote investment by companies in advanced strategic industries such as semiconductors, displays, secondary batteries, and bio. This year, the research and development (R&D) budget for advanced strategic industries has been increased by 10% compared to last year.

On the 27th, the government held the 5th National Advanced Strategic Industry Committee meeting at the Government Seoul Office, chaired by Prime Minister Han Duck-soo, to discuss comprehensive support plans for advanced strategic industry specialized complexes, including these measures.

In July last year, the government designated seven national advanced strategic industry specialized complexes in three sectors: semiconductors, displays, and secondary batteries. The investment scale of companies located in these specialized complexes is estimated to reach 681 trillion won by 2047. The government decided to focus on supporting infrastructure through national funds or public institutions to ensure the complexes are developed on schedule.

First, 43.3 billion won will be provided this year to the Pohang, Gumi, Saemangeum, and Ulsan specialized complexes, and for the Yongin semiconductor national industrial complex, a public institution project exceeding 10 trillion won will be pursued with exemption from preliminary feasibility studies.

The current limit on the number of national funding support projects for infrastructure in specialized complexes (currently two projects) will also be abolished, and the national funding support ratio will be increased up to 10%. The government plans to revise the National Advanced Strategic Industry Act this year to establish a legal basis allowing local governments near the specialized complexes to provide financial support for infrastructure development.

Measures to enhance the competitiveness of individual specialized complexes have also been prepared. For the Yongin general industrial complex, SK Hynix secured more than 308,000 tons of water as requested, and in Gumi, LG Innotek was supported to build dual transmission lines.

On the same day, the government also announced the ‘2024 National Advanced Strategic Industry Promotion and Protection Implementation Plan.’ The government will invest 1.1011 trillion won in R&D budgets for the four major national advanced strategic industries: semiconductors, displays, secondary batteries, and bio. This represents a 10.4% increase compared to last year’s 997.6 billion won.