Third Phase of MPE Specialized Clusters Launched... Promoting Regional Balance Linked to "Five Major Hubs and Three Special Zones"

Strengthening Ecosystem Evaluation for Supply Chain and Technological Self-Reliance
Introduction of "Preliminary Review System" to Reduce Local Government Administrative Burden

The government has begun the process of designating the "third phase of specialized clusters for materials, parts, and equipment (MPE)" to strengthen the competitiveness of the MPE industry and stabilize supply chains. This initiative will be pursued in line with the new administration's core regional strategy, the "Five Major Hubs and Three Special Zones" system, aiming to foster regional industrial bases and expand the ecosystem among companies.

The Ministry of Trade, Industry and Energy announced on January 13 that it held a briefing session on the "third phase MPE specialized cluster selection plan" at Osco in Cheongju, North Chungcheong Province, with more than 200 participants including local government officials, anchor companies, and research institution representatives.

The key themes of this selection are "balanced development" and "ecosystem expansion." The government plans to closely examine how MPE clusters in each region can create synergies in terms of supply chains, in connection with the "Five Major Hubs and Three Special Zones" system, which fosters leading strategic industries by region.

The most heavily weighted evaluation criterion, "the effect of MPE industry agglomeration and competitiveness enhancement," will further specify the role of anchor companies. The plan is to go beyond simple tenancy and require concrete strategies for expanding the industrial ecosystem, such as cooperation models with supplier companies and methods for supporting technological self-reliance. A Ministry of Trade, Industry and Energy official explained, "The key is whether the structure in which anchor companies drive the ecosystem can realistically function."

Procedural improvements will also be implemented. For the first time, a "preliminary review system" will be introduced to reduce the administrative burden and trial-and-error for local governments. Local governments will first submit a conceptual plan outlining their core ideas, and the government will provide consulting on policy alignment. The ministry expects this will improve the quality of applications and lead to more competitive proposals.

The ministry plans to begin the official announcement and application process in March, conduct document and on-site reviews as well as expert evaluations, and then finalize the selected sites at the "MPE Competitiveness Enhancement Committee" in June.

Na Seonghwa, Director General for Industrial Supply Chain Policy at the ministry, stated, "Through the designation of the third phase of specialized clusters, we will make every effort to enhance the self-reliance of core MPE technologies and establish an industrial ecosystem that serves as a hub for regional economies."