Gov't to spend 271 bln won to support industrial parts industry

By Lee Joon-seung
SEOUL, June 4 (Yonhap) -- The government said Thursday that it will spend 271
billion won (US$218 million) by 2012 to help improve the competitiveness of South
Korea's industrial parts and material manufacturers.

The measures outline support for 97 new parts and materials that are used in such
areas as vehicles, display panels, mobile communications, semiconductors and
lighting with 79.2 billion won to be used this year, the Ministry of Knowledge
Economy said.
This year's spending plan represents a 58.4 percent gain from 50.0 billion won
used in 2008 and highlights the importance placed in this industrial sector.
It said if research and development support bears fruit, production for the
industry can go up 5.89 trillion won in 2013 with exports to gain by 4.08
trillion won.
"An emphasis of support will be laid on products that have greatest potential for
growth and can contribute to energy conservation," Kim Sung-jin, head of the
ministry's components and materials division said.
The parts and materials industry is key to ensuring South Korea joins the ranks
of advanced industrialized economies.
Only advanced economies have well developed industrial parts and material
sectors, with other countries importing such products to make finished goods.
Reflecting such importance, the government and private sector spent 2.5 trillion
won on 585 individual product development projects from 2000 through 2008.
yonngong@yna.co.kr
(END)