The South Korean government has announced it's going to invest more than one-point-six billion U.S. dollars a year to strengthen the competitiveness of local companies making the key materials, parts and equipment cut off by Japan's trade curbs.
Our Hong Yoo has the details.
Marking 100 days since Tokyo slapped export curbs on South Korea, Seoul's Finance Minister Hong Nam-ki announced on Friday at the first competency committee meeting for key industrial materials, parts and equipment, that the government will draw up a priority list of supplies for investment and prepare a customized strategy to cope with the export curbs.
In order to push ahead systematically with the strategy, the government has three main plans.
First, 1-point-6 billion U.S. dollars a year will go into strengthening the competitiveness of firms producing key industrial materials, parts and equipment.
The government will promote the revision of a special law that serves as the legal basis for the measures by the end of 2019.
Also, it will find cooperative models between companies and provide customized aid for firms that implement such solutions.
227 million dollars from the extra budget has been approved for this.
Lastly is securing the supply chain of goods on the priority list.
Hong said pan-governmental efforts to deal with Japan's export curbs have been effective in diversifying import partners and boosting private investment.
But the core of strengthening competitiveness of firms, according to Hong, lies in creating win-win cooperation between big companies and SMEs.
Before the start of this meeting, Hong asked companies some of the difficulties they are facing.
And the companies asked for the 52-hour workweek regulations to be eased for research and development.
To that, the minister said complementary measures for the 52-hour workweek will be announced within this month as some SMEs are having difficulties following the system.
Hong Yoo, Arirang News.