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KRW 8.9 tln private investment confirmed for specialized complexes in Busan, Ulsan

According to Yonhap News,

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 16 that private investment of KRW 800 billion in the power semiconductor materials, parts and equipment (MPE) specialized complex in Busan and KRW 8.1 trillion in the national high-tech strategic industrial complex for secondary batteries in Ulsan.

It appears that large-scale private investment has continued since last month's announcement of a plan to create specialized complexes across the country with the goal of securing a super gap in high-tech strategic industries and materials, parts, and equipment industries.

MOTIE's minister Lee Chang-yang visited Busan and Ulsan specialized complexes on August 16 to seek measures to further develop each complex and check investment status.

First of all, about KRW 800 billion worth of corporate investment is underway in the Busan Complex. Additional investment worth more than KRW 500 billion by power semiconductor related firms are currently under discussion following the designation as the specialized complexes.

The MOTIE plans to launch a a KRW 138.5 billion power semiconductor technology development project next year and support firms’ compound power semiconductor market penetration efforts by establishing a KRW 26.5 billion infrastructure to be used for demonstration projects.

The designation as a specialized complex drew KRW 700 billion in investment in addition to the confirmed private investment of KRW 7.4 trillion confirmed at the time of the announcement as a specialized complex designation. within less than a month, and an additional investment of 900 billion won is under discussion at present as well.

An official from the MOTIE said, "Companies are paying keen attention as proved by the fact that additional investment of KRW 900 billion is currently under discussion."

Based on such private investment, Ulsan has set a goal of becoming the next-generation battery hub.

It plans to develop solid-state batteries, called a "dream battery", and build a plant for producing LFP batteries for the first time in Korea.

Over KRW 2 trillion will be poured by 2030 to build facilities for manufacturing battery precursors and smelting and refining minerals as part of a plan to secure critical minerals and smelting technology, which are key to becoming the next-generation battery hub.

MOTIE and Ulsan Metropolitan City will also inject KRW 34 billion by 2025 to create a “next-generation battery park” to support the establishment of a mother factory in Ulsan.

During talks at the complexes, Minister Lee stated that “Based on the industrial strategy map for developing the semiconductor and secondary battery industries, we will find tangible measures through close cooperation between the Government and local governments", highlighting that “we will maintain high-tech industries’ super gap through detailed policy support."

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Source: Yonhap News (August 16, 2023)

** This article was translated from Korean.