On May 29, Second Vice Minister Kim Yoon-sang visited the BitGreen National Industrial Complex in Gwangju Metropolitan City to check on the progress in fostering the future automobile industry and creating an advanced industrial cluster. He paid a visit to the Gwangju Institute of Green-Car Advancement, which supports the growth of the automobile industry, and LG Innotek, a manufacturer of future car parts, to hold a meeting with the industry insiders.
The automobile industry has recently been transitioning toward eco-friendly future vehicles, such as autonomous and electric cars. In response, the government is fully supporting the future car industry to drive continuous growth of the Korean economy by implementing the Act on Future Automotive Parts Industry (effective from July 2024) and enhancing support measures, including financial and tax incentives.
In addition, at the Emergency Economic Conference for People’s Livelihood held in March 2023, the government designated a new National Advanced Industrial Complex for future vehicles, covering an area of 3.3 million square meters in Gwangsan-gu, Gwangju. In July 2023, the government further designated the National Advanced Industrial Complex and BitGreen National Industrial Complex as Specialized Complexes for Materials, Parts, and Equipment for autonomous vehicles, with an aim to strengthen the innovation ecosystem of the advanced future car industry by easing siting regulations.
At the meeting, Gwangju City explained that they are swiftly proceeding with the feasibility study and other required procedures to establish the newly designated industrial complex for future vehicles, asking for active financial and infrastructure support from the government. The government responded that in 2024, it allocates a total budget of 442.5 billion won, which includes 392.5 billion won for process innovation and R&D to gain a technological edge in future vehicles and 50 billion won for non-R&D areas, in addition to providing policy financing worth 9.7 trillion won.
2nd VM Kim stated that despite the challenging fiscal conditions, the government will strive to build an economic innovation ecosystem through investments for advanced industries and R&D, as well as revitalize dynamism of the Korean economy by improving its economic structure to prepare for the future; to this end, strengthened efforts are being made to reform the fiscal management to use the government budget more effectively.
VM Kim particularly noted that as advanced industries such as future automobile are the driving force of innovation in achieving sustainable economic growth, the government is committed to continue injecting budget for R&D and commercialization of future vehicles.
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