Government Accelerates Megaprojects and Manufacturing AX, Speeds Up Semiconductor Cluster Creation

The government is accelerating its push for three major megaprojects and manufacturing artificial intelligence (AI) transformation (M.AX).

It plans to select "growth engine" projects for regional growth this month and push for the enactment of the Special Act on Mega Special Zones and the Special Act on Renewable Energy Autonomous Cities within the year.

It will also strengthen the industrial and resource security system by establishing a new Industrial and Resource Security Fund.

The Ministry of Trade, Industry and Energy (MOTIE) announced 10 core tasks including these measures during its second-half policy briefing presided over by President Lee Jae-myung at the Blue House Yeongbinmun today (August 4).

Through these initiatives, the ministry plans to implement four growth axes (megaprojects, M.AX, industrial and resource security, and growth together) and two spatial axes (region-led growth and economic territory expansion).

MOTIE will go all-out for the swift implementation of megaprojects, holding monthly review meetings presided over by the President to check progress.

The Honam region semiconductor cluster is scheduled to complete the selection of a project operator and designate a cluster candidate site for the industrial complex within this year, followed by securing electricity and water supplies and proceeding with administrative approval procedures.

As the completion timelines for the general and national industrial complexes of the Yongin semiconductor cluster have been brought forward by 12 and 8 years respectively, land compensation procedures will be finalized within this year with the goal of starting fab operations at the national complex by 2029.

The government aims to innovate the ecosystem and maximize economic effects by localizing materials, parts, and equipment (MPE) related to the three major megaprojects and nurturing 110,000 semiconductor and robot personnel.

Regarding the M.AX initiative pursued by MOTIE, a cumulative total of 220 manufacturing processes (50 in the second half) will be converted into AI factories by the end of this year, and field application of AI will be expanded through the databazation of manufacturing tacit knowledge and humanoid demonstrations.

Seven core industrial complexes by region will be built as M.AX clusters by 2030.

MOTIE also presented plans to expand domestic and overseas economic territories.

It will select and announce 3 to 4 "growth engine" projects per region this month to drive region-led growth and flesh out a seven-part support package encompassing finance, taxation, and infrastructure.

In addition, it will establish legal grounds to fully support regional investments and megaprojects.

The Special Act on Mega Special Zones will be enacted within the year to expand corporate support through about 300 menu-style regulatory exemptions and special subsidies.

The Special Act on Renewable Energy Autonomous Cities is also targeted for enactment within the year to build RE100 (100% renewable energy) industrial complexes.

Foundations will also be laid to achieve annual exports of $1 trillion and rank among the top 5 export powerhouses.

For strategic items such as defense and nuclear power, the government decided to provide 18 trillion won in trade financing this year and 127 trillion won by 2030.

Regarding U.S. investment projects, while the government is coordinating with the U.S. side on matters such as the construction project for a gas-fired combined cycle power plant, it will select the first project within the year and sequentially announce cooperative projects in areas of mutual interest for both countries.

It will also review joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to diversify markets and strengthen supply chain foundations.

An "Industrial and Resource Security Fund" will be newly established to build a long-term resource security foundation.

The ministry will pursue upgrades to production facilities for processing various crude oils such as extra-heavy and light crude, expansion of crude oil and gas stockpiling facilities, and increased stockpiling of core minerals.

In addition, economic sanctions will be strengthened, such as substantiating damages claims to block the leakage of national core technologies.

Along with this, the "Strategic Support and Management Act for Overseas Expansion" will be enacted within the year to support overseas advancement in highly strategic fields such as supply chain and core resource acquisition.

To foster mutual growth between anchor companies and partner firms, the "Industrial Ecosystem Together Growth Project," in which the government and anchor companies will jointly invest 5 trillion won over five years, and a 10 trillion won "Public-Private Joint Industrial Growth Fund" will also be established.

To achieve early results in its core tasks, MOTIE emphasized that it will operate a tentatively named Policy Performance Innovation Task Force directly under the Minister to generate "genuine achievements."

(Photo: Provided by the Blue House Pool Reporters Press Corps, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.