Reduce reliance on foreign imports! The South Korean government releases the “Materials, Parts, and Equipment 2.0 Strategy.”

According to Yonhap News Agency, on July 15, the South Korean government unveiled the "Materials, Parts, and Equipment 2.0 Strategy," significantly expanding the list of items subject to supply chain management. This move is aimed at proactively addressing the global supply chain restructuring in the post-COVID era and outlining an ambitious blueprint for making South Korea a powerhouse in the parts industry and a global manufacturing hub for cutting-edge industries.

Building on its original list of 100 domestically produced strategic items targeted at Japan, the South Korean government has added core supply-chain management products related to the United States, Europe, China, and other regions, bringing the total number of items to 338. The scope of these items has also expanded beyond the previous focus on sectors such as semiconductors, displays, automobiles, electrical and electronic equipment, machinery and metals, basic chemicals, and textiles, now encompassing emerging industries like bio, energy, and robotics.

It is understood that among the 338 projects, 158 have been categorized as cutting-edge technologies, while 180 have been categorized as general-purpose technologies. In addition to hoping to achieve technological independence, South Korea also looks forward to ensuring a stable supply.

South Korean authorities stated that the government will invest 5 trillion won in R&D by 2022 to ensure technological advancements that will drive new growth engines. In particular, the South Korean government will allocate 2 trillion won to R&D in semiconductors, biotechnology, and electric vehicles (EVs). Additionally, a fund of 400 billion won will be established, which is expected to provide support over the next five years to the materials, components, and equipment sectors of 100 companies.

South Korean President Moon Jae-in stated that South Korea will take a path different from Japan’s—turning crises into opportunities. Through the “Materials, Components, and Equipment 2.0 Strategy,” South Korea aims to become one of the world’s leading powers in materials, components, and critical equipment.

Moon Jae-in also pointed out that South Korea will build on its current achievements to further advance its policies, shifting from a “defensive” stance to a “transformational” one and establishing itself as the world’s factory for cutting-edge industries. Although the pandemic has led countries to close their borders, fueled the spread of nationalistic self-centeredness, and created cracks in the global division of labor and cooperation, it has also, paradoxically, underscored just how closely interconnected the world truly is. Ensuring the stability of international division of labor and cooperation and upholding global free trade will be the most important values in the post-COVID era.

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