According to Yonhap News,

(SEJONG = Yonhap News) South Korea will work to more than double its outbound shipments of industrial parts and materials by 2020, the government said Monday.

To this end, the government, together with the private sector, will invest 2 trillion won (US$1.89 billion) by 2016 to develop what it called 10 world premier materials, according to the Ministry of Trade, Industry and Energy.

The amount compares with the 3.6 trillion won invested over the past 13 years since 2001, it said in a press release.

"Especially, the government will move to build an industrial cluster for chemical material manufacturers to help strengthen the competitiveness of the local industry," the ministry said, noting the chemical materials sector currently accounts for about 40 percent of the country's deficit in trade of industrial parts and materials with Japan.

Such measures are a follow-up to the so-called Vision 2020 announced in November 2011, in which the government sought to specifically improve the competitiveness of small- and medium-sized enterprises (SMEs).

In 2012, South Korea shipped $253.4 billion worth of industrial parts and materials, posting a $91 billion surplus.

The ministry said the latest support measures will help increase the country's exports to $450 billion in 2016 and $650 billion in 2020, which in turn will boost the country's trade deficit in the industrial parts and materials sector to $170 billion and $250 billion, respectively.

The latest measures include the establishment of a new 20 billion won fund specifically earmarked for the research and development of new materials by SMEs and venture firms, according to the ministry.