MINISTRY OF ECONOMY AND FINANCE
www.moef.go.kr MINISTERIAL MEETING ON JAPAN’S TRADE CURBS
G OVERNMENT TO H ELP D EVELOP 100 S TRATEGIC T ECHNOLOGIES
Deputy Prime Minister Hong Nam-ki presided over the Ministerial Meeting on Japan’s Trade Curbs1, held on August 5, where participants discussed measures to help develop high-tech materials, parts and manufacturing equipment. The government will work to restructure the country’s industry that depends on overseas suppliers for most important items for manufacturing.
The following is a summary of DPM Hong’s keynote address.
The government announced on August 2 how Korea would respond to Japan’s export control: the removal from the white-list, as well as controls over the three strategic items. On the same day, the 2019 supplementary budget was passed at the National Assembly, a total of 273.2 billion won reflected in the budget to support companies affected by the export curbs. We will support the companies focusing on the following.
Two main pillars for measures to support companies affected
- Short-term measures to reduce uncertainties about supply shortage, which include securing the items and finding alternative suppliers
- Long-term measures to promote high-tech supplies in order to reduce foreign dependency Measures to help develop high-tech supplies
- Select 100 items among strategic ones, including the three Japan has put its controls on, and work for the development of those items
- Provide fiscal support, including tax and financial support, to help develop high-tech supplies:
Provide tax, financial and regulatory support for technologies that can be developed domestically, and promote M&As for technologies that should be bought overseas by supporting venture capital and raising funds
- Remove regulatory difficulties to promote corporate R&Ds: Adopt a fast track approval for chemical substances, allow longer work hours, make it eligible for feasibility study exemption required for fiscal support if the R&D involves core technologies, and support testing and manufacturing by providing testbeds and other infrastructure needed
- Promote cooperation between suppliers and manufacturers, as well as among suppliers, through tax, financial and regulatory support to help reduce foreign dependency
1 Ministers who attended the meeting were Minister of Trade, Industry and Energy, Minister of Employment and Labor, Minister of SMEs and Startups, Minister of the Interior and Safety, Minister of Environment, Minister for Government Policy Coordination at Prime Minister’s Secretariat, Chairman of Financial Services Commission, Minister for Trade at the Ministry of Trade, Industry and Energy, Vice Minister of Foreign Affairs, Minister for Science, Technology and Innovation at the Ministry of Science and ICT, Commissioner of National Tax Service, Commissioner of Korea Customs Services, and Chief Secretary for Economic Affairs at Presidential Office
Embargo: Release Date: August 5, 2019
Contact Information: Cheon Jae-ho (044-215-4530/ Industrial Policy Division)
Press Release
MINISTRY OF ECONOMY AND FINANCE
www.moef.go.kr
- Launch a council for high-tech supply competitiveness, which will be chaired by Deputy Prime Minister, and make the special act on materials and parts into a general law
Reducing foreign dependency on manufacturing supplies has been an important issue for the Korean economy, and we will work on Korean industries’ further advance in this field.
