Korea expands key technologies in materials, parts, equipment to provide aids
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The number of key strategic technologies in the field increased to 200, from the current 150. The government’s plan was unveiled by Vice Minister of Trade, Industry and Energy Jang Young-jin on Wednesday during the vice minister’s visit to Higen Motor, one of the official prime enterprises in these sectors.
Key strategic technologies in materials, parts and equipment refer to technologies that play a key role in the value chain of the industry. Companies that own these know-hows are eligible to apply for the status as prime enterprise, allowing them to receive a range of benefits like environmental and employment regulatory exemptions, as well as tax credits for investment and acquisition of related companies either at home or abroad.
Currently, 66 companies have officially been designated as prime enterprises, covering key strategic technologies in the field.
“The government hopes that this aggressive policy support, including financial, investment and tax support, and the creation of additional factory complexes specializing in materials, parts and equipment, will help Korean companies grow into super players in the global market, like Dutch semiconductor equipment company ASML,” said Jang.
The ministry plans to announce strategies for the globalization of materials, parts and equipment companies and decide on support measures tailored to prime enterprises in the industry in a committee meeting sometime this month to help strengthen the industry’s competitiveness.
Jang also highlighted the importance of close cooperation with companies in Japan as Higen Motor exports inverter motors to Hitachi Ltd. and Sasakura Engineering Co.
“Japan is a country closely connected to Korea in terms of supply chain,” Jang said. “We will expand cooperation models among domestic suppliers and buyers to major global companies, including those in Japan, and seek cooperation on developing eco-friendly technologies and supply chains in high-tech and advanced industries for the common benefit of both countries.”
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