Sixteen mentor companies that support the creative economy innovation centers are investing 136 trillion won (US$116.2 billion) by 2017 in a bid to secure a new growth engine. Also, they will finance 5 trillion won (US$4.27 billion) for three years for mutual growth with their subcontractors.
According to a survey of companies that support 18 creative economy innovation centers across the nation conducted by the Federation of Korean Industries (FKI) on July 24, it announced the new growth engine investment plan from 2015 to 2017.
First, these companies plan to invest nearly 17 trillion won (US$14.52 billion) in the development of eco-friendly energy, including solar power and bioenergy. They will also invest 12 trillion won (US$10.25 billion) in ICT convergence, including Internet of Things and smart cars, and 11 trillion won (US$9.4 billion) in the new materials sector, such as secondary batteries and carbon fiber.
Moreover, the companies are to invest 9 trillion won (US$7.69 billion) in the advanced parts sector, including new engine development, and 6 trillion won (US$5.13 billion) in the distribution and leisure sector, such as distribution channel diversification and leisure facility establishment.
For major investment areas by each company, Samsung plans to invest dozens of trillions of won every year in the electronic, biotech, and secondary cell sectors, while Hyundai Motor plans to invest such an amount in the future vehicle sector, including in eco-friendly and smart cars. LG will also invest in the expansion of the energy and OLED sectors, while Hanwha will do so in the defense, chemical, service, and solar power businesses. KT is to focus investment in setting up wired and radio gigabit networks.
GS and Hanjin will invest in environmentally-friendly power generation and the adoption of high-efficiency airplanes, respectively, while Doosan will make aggressive investment in developing large gas turbines. Naver and Daum Kakao plan to invest in search and utilization technology, which are the counterparts of Big Data and the fintech sector, respectively.
The companies are not only taking full responsibility for the creative economy innovation center management, but are also leading in the shared growth with subcontractors. In order to do so, they are planning to raise funds worth 5 trillion won (US$4.27 billion) by 2017 and to support them.
SK is currently running shared growth funds to improve the wages and welfare programs of its subcontractors.
Lotte is making efforts to open up a new overseas market for its subcontractors, while POSCO is supporting research and development to promising small and mid-size firms or guaranteeing purchase for a certain period of time.
CJ is raising funds for agricultural food and seeking ways to push into overseas markets with smaller firms. Hyundai Heavy Industries is joining hands with the Asan Nanum Foundation’s startup incubating center to invest in startups and support startup costs to the young. Hyosung is also running funds to focus investment in companies which are related to carbon.