The government said Monday that it has picked 220 local companies and laboratories that will be tasked to develop industrial materials vital for South Korea's future manufacturing sector growth.
The companies, which were picked to implement the so-called World Premier Materials (WPM) development program, are to be grouped into 10 consortiums led by such companies as POSCO, LG Chem Ltd., LG Innotek Co. and Samsung SDI Co. so they can develop materials used in a wide range of products, the Ministry of Knowledge Economy said.
It said the consortiums will develop various metallic materials, membranes, plastics, medical and display-related components as well as nano and silicon carbide substances.
Industrial material development is key to the country aiming to become a leading manufacturer in cutting-edge areas. At present, the worldwide market
for the key industrial materials is controlled by advanced industrialized economies in North America, Europe and Japan.
The ministry added that of the companies selected through a rigorous screening process, 100, or about 45 percent, are small or midsize enterprises (SMEs).
It said the SMEs were chosen as part of the government's policy to support business activities of smaller-sized business that are responsible
for the bulk of the country's jobs.
The WPM program called on the government in late 2009 to invest 1 trillion won (US$851million) by 2018 on research and development into industrial materials, with companies expected to inject 5.3 trillion won to actually make commercial products.
If the effort makes headway, South Korea may be able to create 150,000 new jobs and grab around a 10 percent share of the estimated $320 billion
global market, the ministry said.