Moon announces plans to invest in domestic production of strategic items

Posted on : 2019-08-21 17:44 KST Modified on : 2019-10-19 20:29 KST
S. Korean president provides vision to overcome economic dependence on particular countries
South Korean President Moon Jae-in tours a Hyosung Advanced Materials carbon fiber factory in Jeonju
South Korean President Moon Jae-in tours a Hyosung Advanced Materials carbon fiber factory in Jeonju

South Korean President Moon Jae-in announced plans to invest large amounts in fostering domestic production of 100 core strategic items. The measures are part of a vision of overcoming the dependence on particular countries in the current industry structure through the selection of and channeling of focused support to carbon fibers and other key strategic items.

“We need to remedy this model of dependence on particular countries in the industry structure,” Moon said while attending a ceremony for an agreement on new carbon fiber investment held on Aug. 20 at a Hyosung Advanced Materials carbon fiber factory in Jeonju, North Jeolla Province.

“We plan to select 100 core strategic items, including carbon fibers, to invest a large-scale budget of over 7 to 8 trillion won [US$5.82-6.66 billion] over the next seven years,” he announced.

“We also plan to pursue pre-feasibility study exemptions for core R&D areas that are urgently in need of self-sufficiency,” he added.

“We will be combining measures such as fiscal, tax-based, and financial support and loosening of regulations to swiftly foster material and component areas where rapid technology development is possible, as well as mergers and acquisitions to acquire core technology in areas that require the introduction of technology from overseas,” he explained.

Moon’s visit to Jeonju was part of an effort to provide encouragement on the ground in the face of export controls by Japan. Hyosung, the company whose factory he visited that day, became the fourth in the world to successfully develop high-performance carbon fibers, following companies in Japan, the US, and Germany. Lighter than metal and boasting outstanding elasticity and strength, carbon fibers are used in hydrogen vehicle fuel tanks and aircraft fuselages. On Aug. 7, Moon visited SBB Tech, a small businesses in Gimpo, Gyeonggi Province, that produces precision control gear reducers, to share praise for its technological achievements in developing its own components to replace Japanese products.

Stressing that South Korea “will be shaken by no one,” Moon said, “We must reduce our dependence on particular countries for core materials in order to become a responsible economic power.”

“I look forward to the new carbon fiber investment, which represents the roots of future new industries, not only boosting the competitiveness of our high-tech material industries but also serving as a pump prime to promote new investment in different areas,” he added.

By Lee Wan, staff reporter

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