South Korea’s industry ministry said Wednesday the government will allocate 506.7 billion won (US$374.5 million) over the next five years for use in industrial zones that specialize in the material, part and equipment sectors to cultivate them as the key base of the supply chain.

The announcement came after the government designated five industrial zones in the three areas the previous year, with businesses pledging a combined investment of 6.7 trillion won.

“The government will provide customized support for the industrial zones so that the 6.7 trillion-won investment can be implemented on time,” the Ministry of Trade, Industry and Energy said in a statement.

The ministry added that the budget will be spent to support research and development projects, along with fostering workforces to be employed in the zones.

“The material, part, and equipment sectors are the backbone of the cutting-edge industry, and play a vital role for South Korea to emerge as the powerhouse of the supply chain,” Industry Ministe
r Ahn Duk-gen said.

The government also expanded its scope of key strategic technologies for the material, part and equipment industries by including the space, aviation, defense and hydrogen categories.

Following the revision, the total number of such eligible technologies rose to 200 from the previous 150.

Source: Yonhap News Agency