| Government, for strengthening self-reliance capabilities in core source technologies
| Establishment of R&D Investment Strategies and Measures for Materials, Parts, and Equipment
Intensive investment of over 5 trillion won from next year to 2022

The government is continuing its efforts to turn Japan's export restrictions into a blessing in disguise.

On the 28th, the Ministry of Science and ICT, the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, and the Korean Intellectual Property Office held the 'Expanded Ministerial Meeting on Response to Japan's Export Restrictions and the 7th Ministerial Meeting on Science and Technology' presided over by the Prime Minister, and finalized the 'Investment Strategy for Research and Development and Innovation Measures for Materials, Parts, and Equipment.'

The 28th is the day the Cabinet decision to remove Korea from Japan's whitelist goes into effect.

This measure was established in conjunction with the 'Measures to Strengthen Competitiveness of Materials, Parts, and Equipment' announced by the government on the 5th, in order to fundamentally resolve the issue of external dependence on key items through R&D and to seek to secure core source technologies.


Establishment of response strategies for each key item
The government has decided to conduct an in-depth analysis of key items at risk of Japanese export restrictions, and to formulate and implement sophisticated R&D response strategies for each item following consultations with relevant ministries and expert reviews.

Japan has already taken export restriction measuresSince early July, relevant ministries have been jointly conducting assessments on more than 100 key items, and we plan to complete the assessment of all key items within this year.

Response strategies for each key item are established based on domestic technological levels and the potential for import diversification, taking into account the characteristics of each type.

For key items with high domestic technological capabilities and significant potential for import diversification, we will focus on technology development aimed at globalization.

For key items with low domestic technological capabilities but high potential for import diversification, we will support the early introduction of substitutes into the production process in the short term and focus on securing source technologies in the mid-to-long term.

For key items with low domestic technological capabilities and limited potential for import diversification, we aim to achieve a paradigm shift in the industrial structure by securing core source technologies capable of bypassing existing supply chains and creating new, domestically-led supply chains.

For key items with high domestic technological capabilities but low potential for import diversification, priority support is provided for commercialization R&D involving collaboration between suppliers and demand companies.


Establish a special committee to expand investment and support systems
A joint public-private 'Special Committee on Materials, Parts, and Equipment Technology' will be established under the National Science and Technology Advisory Council, a body directly under the President, to comprehensively manage key items.

Special CommitteeIt supports the cataloging of core items and the establishment of research and development policies for materials, parts, and equipment, and conducts preliminary reviews and deliberations on core item projects eligible for preferential treatment in preliminary feasibility studies.

In addition, investment in research and development for key items will be significantly expanded, with a total of over 5 trillion won to be invested early and concentrated over the next three years from 2020 to 2022.

The budget for projects related to core items is excluded from expenditure restructuring and is also exempt from sunset management.

In addition, the national R&D system will be promptly improved to support the enhancement of competitiveness in materials, parts, and equipment.

For materials, parts, and equipment projects related to critical items requiring urgent response, the preliminary feasibility study will be exceptionally replaced with a cost-effectiveness (E/C) analysis following prior review and deliberation by the 'Special Committee on Materials, Parts, and Equipment Technology,' and the system will be improved to ensure that a significant number of field experts participate in the comprehensive evaluation that makes the final decision on whether to proceed with the project.

To promote rapid R&D, we plan to institutionalize the basis for implementing fast-track projects and lower the research funding matching ratio to the level of small and medium-sized enterprises to encourage participation from client companies (large and medium-sized enterprises).

Unlike before, performance evaluations for core item projects will focus on practical indicators, such as technology commercialization achievements and purchasing volumes by client companies, thereby narrowing the gap with the industrial field.


Establishment of a state-led system for the total mobilization of industry-academia-research R&D capabilities
The government is pursuing the 3N+R policy to consolidate national research capabilities.
▲ Consolidating National Research Capabilities