The Ministry of Economy and Finance in South Korea announced on Monday that the country plans to invest roughly 2.2 trillion won (1.65 billion USD) through 2028 to create industrial zones for cutting-edge technologies. The initial investment for 2024 will be 400 billion won, which will be used to develop clusters specialized in strategic and medical industries. Finance Minister Choo Kyung-ho said that the plan is intended to improve the competitiveness of South Korean industries and to generate new growth engines.
In addition, the government is aiming to bypass the feasibility study for the world’s largest semiconductor complex in Yongin near the chip facilities of Samsung Electronics Co. and SK hynix Inc., as well as other parts and equipment companies. Furthermore, foreign companies that specialize in advanced technologies will receive a cash subsidy of 200 billion won in 2024, which is four times the amount allocated for this year.
The list of strategic industries will also be increased to include eight biopharmaceutical technologies, and 1.8 trillion won will be allocated for research projects with major institutions from overseas in 2024, including semiconductors, displays, and batteries. The country will also invest 86.4 billion won in 2024 for the Boston-Korea project, which is meant to connect South Korean institutions with those based in Boston, such as Harvard University.
Choo Kyung-ho also noted that there are still a few uncertainties in the global economy, such as the tightening of monetary policies and fluctuations in the oil price. The government plans to keep a close eye on the risks and to stabilize prices before the Chuseok holiday in late September.