Investment in major manufacturing sectors to hit $82 bn

[Courtesy of the Ministry of Trade, Industry and Energy]

South Korean companies will increase capital investment in the country’s top manufacturing industries by more than 18 trillion won year-on-year to a whopping 110 trillion won ($82.8 billion) in 2024, according to a recent statement.

The announcement comes as part of the strategy unveiled by the Ministry of Trade, Industry and Energy (MOTIE) for 2024 on Wednesday, when the ministry convened its inaugural investment strategy meeting for the year, which was attended by Minister Ahn Deok-geun and several corporate executives, including SK Hynix Inc. President Kim Dong-Sub, Hyundai Motor Co. Chief Executive Chang Jae-hoon, and Samsung Display Co. Chief Executive Choi Joo-sun Choi.

The meeting aimed to discuss approaches outlined by an updated industrial support framework known as New Industrial Policy 2.0.

While the previous version of the strategy focused on industrial overhaul and regulatory revision, the updated one prioritizes leveraging all available resources to facilitate timely corporate investments. The emphasis is due to the recognition of business investment as a crucial driver of job creation, export growth, and overall economic expansion.

“We are committed to driving change and progress that directly benefit the industry, and it is time to produce tangible outcomes,” Ahn said.

The 2024 target for capital investment in the top 10 Korean manufacturing sectors, as outlined by the ministry, is estimated at 110.6 trillion won. Semiconductors lead with 60.4 trillion won, comprising 55 percent of the total, while automobiles and displays follow with 16.6 trillion won and 10.5 trillion won respectively. Investment in secondary battery facilities will amount to 7.1 trillion won, with steelmakers investing 5.1 trillion won.

The industry ministry plans to closely monitor and support 20 key projects within the top 10 manufacturing investments in response to global uncertainties and the rapid advancement of high-tech industries.

MOTIE will explore regulatory reforms, particularly in high-tech sectors such as semiconductors, secondary batteries, biopharmaceuticals, and displays, with a plan to unveil a new program designed to support the artificial intelligence industry. The ministry will also form a committee of leading industrial experts in the sector and a 100-member working group as part of the roadmap.

In the semiconductor segment, MOTIE will roll out measures to make fabless industries more competitive by the end of the first half of 2024, including a project worth 14 billion won to support the research and development of innovative power semiconductors.

The ministry will also aim to bolster growth in established industries such as shipbuilding and steel. In shipbuilding, it will come up with a technological roadmap to bridge the technical gaps and lead the seamless commercialization of future technologies, including autonomous operation.