The Ministry of Trade, Industry and Energy announced this year it will invest a total of 1.141 trillion won in research and development (R&D) for materials and components technology, focusing on creating a significant lead in advanced industries, stabilizing supply chains, and achieving carbon neutrality.
On March 4, the ministry disclosed its first announcement of new projects for materials and components technology development valued at 245.1 billion won (US$183.7 million). The projects announced are part of the “Industrial & Energy R&D Investment Strategy” released on Jan. 18, planned around advancing cutting-edge technology, stabilizing supply chains, and achieving carbon neutrality.
Initially, 69.4 billion won will be invested in technologies aimed at extending the lead in advanced industries such as semiconductors, displays, and aerospace. This includes the development of gallium nitride (GaN) semiconductor processes, devices, and modules for high-capacity vehicle battery charging, materials for touchless tactile sensation in extended reality (XR), and lightweight, heat-resistant titanium aluminide (TiAl) compressor blades and low-pressure turbine blades for aircraft engines, supporting 35 new projects.
Furthermore, 58.6 billion won will be newly invested in technology development for 185 supply chain stability items that are highly dependent on specific countries, which is more than a fivefold increase from last year's new investment amount. Notably, this includes development of projects such as multilayer ceramic capacitors (MLCCs) that substitute rare earth elements, recycling process technology for waste rare earth magnets used in electric vehicle motors, and development of core materials and applied products for bio-diol.
Additionally, 54.5 billion won will be newly allocated to develop carbon-neutral technologies for materials and components in response to global environmental regulations such as the EU’s Carbon Border Adjustment Mechanism (CBAM). The ministry has previously supported the development of carbon-neutral process technologies for key industries like steel and cement through its Carbon Neutral Industrial Core Technology Development Project.
This year, the ministry has added a carbon-neutral sector to its materials and components technology development project, supporting 29 projects including technology for recycling scrap into aluminum alloy materials and developing green fiber materials using captured carbon dioxide. Moreover, 62.6 billion won will be provided to investment-linked technology development, where the government matches R&D funds for companies that attract private investment.
For goal-oriented technology development, out of the 121 new projects announced, 111 have been planned as large-scale integrated projects with budgets of over 10 billion won each, aiming for technological advancement and rapid acquisition of technology. Additionally, 55 projects are designed as overseas-linked projects.