The Korean government has unveiled its plan to invest a total of 2.2 trillion won ( USD 1.65 billion) in creating industrial clusters focused on advanced technologies. The investment spans over the next five years and aims to establish specialized geographical zones dedicated to supporting world-class industries.
In the initial phase of this endeavor, the government will allocate 400 billion won (about USD 301.66 million) in 2024 to develop industrial zones tailored to the strategic and medical sectors.Â
Additionally, the government plans to allocate approximately $1.4 billion to fund research projects in collaboration with major international institutions in semiconductors, displays, and batteries.Â
The South Korean government plans to bypass the usual feasibility study to create what’s anticipated to become the world’s largest semiconductor cluster, located south of Seoul.Â
Further, the government will call for applications for biotech-specialized zones during the latter half of this year. Establishing these zones is slated for the first half of the upcoming year.Â
The government is facilitating increased external investments for corporate venture capital (CVC) under general holding companies to invigorate private sector investment and enhance the venture ecosystem. The limit for external investments will rise from 40 percent to 50 percent of individual fund investments, and the overseas investment ratio will expand from 20 percent of total assets to 30 percent.
South Korea is expanding its strategic focus by integrating eight biopharmaceutical technologies into the state-selected list of strategic industries. This inclusion is expected to entitle local pharmaceutical companies to additional tax incentives, encouraging further investment in research and development in the biopharmaceutical sector.
South Korea is also bringing global collaboration by investing 86.4 billion won in 2024 in the Boston-Korea project. With this, the government plans to bridge South Korean institutions with renowned counterparts in Boston, including prestigious institutions such as Harvard University.Â
The project’s focus spans various critical aspects of biotech research and development, encompassing artificial intelligence for antibody drugs and the advancement of Doctor & Answer 3.0, among others.
Special incentives are in place to promote open innovation projects between large corporations and startups within these clusters. Additionally, overseas joint R&D is set to surge, with an allocation of 1.8 trillion won in 2024.Â
It will enable partnerships with esteemed international institutions and emphasize the collaborative development of crucial technologies across multiple domains, including semiconductors, displays, next-generation batteries, quantum computing, nuclear energy, and space exploration.
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