Gov't to invest 155 bln won in new growth industries

By Lee Joon-seung
SEOUL, July 8 (Yonhap) -- The government will inject 155 billion won (US$121
million) into 26 commercial projects by mid 2010 to help speed up new smart
growth industries that are vital for future economic growth, officials said
Wednesday.
The short-term research and development (R&D) funds are designed to support large
projects with funds going exclusively to companies that can create jobs and fuel
related investments, the Ministry of Knowledge Economy said.
In the past, Seoul's R&D assistance involved long term projects ranging from five
to seven years, with money going to companies, schools and laboratories.
"The focus is to facilitate development of commercially applicable technologies
by both large conglomerates and small and medium enterprises that can have an
impact on the overall economy," said Cho Seok, deputy minister at the ministry's
industrial growth office.
Under the plan, leading conglomerates including Samsung Electronics Co., Hyundai
Motor Co., SK Energy Co., LG Electronics and POSCO will receive state R&D funds
in eight main industrial areas along with smaller-sized companies.
The eight areas are bio-pharmaceuticals, robotics, desalination plants, light
emitting diodes, new semiconductors, displays, green cars and clean coal.
Samsung, South Korea's largest conglomerate, is expected to get 9 billion won by
teaming up with local biotech companies to enter the biosimilar market, which
refers to the manufacture of new versions of biopharmaceutical products, while
Hyundai aims to expand its presence in the smart car field.
SK Energy and POSCO plan to use R&D funds to push forward development of advanced
natural gas and non-polluting coal, while LG said it wants to make new battery
cells for electric cars.
The official added that companies that get the funds are expected to invest 1.86
trillion won into facility investments by 2011, with the total to reach 11.8
trillion won by 2013.
In the first half of 2011, a rise in business investments could create 6,800 high
quality jobs.
The ministry in charge of the country's industrial policy and trade promotion,
meanwhile, said that there were some concerns about the latest R&D plan
conflicting with World Trade Organization rules on subsidies, but claimed no
conflicts should arise.
It emphasized that besides the relatively small size of support, the process of
providing funds was open to all interested businesses from the outset so that
there was no discrimination in the selection process.
yonngong@yna.co.kr
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