The Ministry of Trade, Industry and Energy said that after Japan’s export restrictions, the Korean materials, parts, and equipment (small manager) industry had achieved results such as a decrease in dependence on Japan for 100 key items and an increase in sales of Korean small manager companies 28 work said
There was no disruption in supply and demand for the three major export regulated items (hydrogen fluoride, EUV resist, and polyimide fluoride), and dependence on Japan for all items including 100 key items decreased significantly.
Hydrogen fluoride imports decreased by 66% from $36.3 million in 2019 to $12.5 million last year, and EUV resist’s dependence on Japan fell below 50% due to diversification of imports from Belgium.
Fluorinated polyimide is also in a situation where there is virtually no demand for imports from Japan due to the adoption of an alternative material.
As a result, the dependence on Japan for 100 key items (based on HS code) decreased by about 6%p from 30.9% in 2019 to 24.9% last year.
In addition, the ecosystem for cooperation between the demanding companies, supply companies, public research institutes, and universities is rapidly revitalizing, and the visible growth of the small managers is confirmed.
In January-September of last year, the total sales of domestic listed companies increased by 20.8% compared to the same period in 2019. Last year, the size of the trade surplus of small managers was 3.9 times that of other industries.
Meanwhile, Minister of Trade, Industry and Energy Moon Seung-wook visited Yulchon Chemical, Ansan, Gyeonggi-do, which is a cooperative model for sub-ministers, to check the performance and hold a meeting with related organizations.
The co-operation model for superintendent manager is to support technology development, tax/finance, and deregulation in a package on the premise of cooperation between supply and demand companies for the early localization of key strategic items for superintendent manager.
Yulchon Chemical succeeded in localizing battery pouches for electric vehicles (EVs), all of which are currently imported from Japan, through continuous cooperation with domestic secondary branches after export restrictions to Japan. The battery pouch for electric vehicles is the final exterior material that protects secondary batteries and is manufactured through surface treatment, lamination, and coating processes on an aluminum film.
Yulchon Chemical is able to produce pouches of up to 100 million square meters per year by localizing pouch production equipment along with the localization of pouch materials for rechargeable batteries for electric vehicles.
This is expected to significantly increase domestic and overseas market share, and is expected to greatly contribute to the improvement of competitiveness in the secondary battery-related sub-management sector, which has been evaluated as insufficient compared to the manufacturing competitiveness of finished battery products.
This cooperative model project was selected as a cooperative model by the 4th Sub-Manager Competitiveness Reinforcement Committee in May 2020, and 7.3 billion won was invested in the government budget.
For the development of production equipment (composite coating equipment), Company L, a domestic parts company, developed core parts such as servo motors and controllers, and Company D, an equipment company, developed production equipment. .
In addition, domestic secondary branches participated as a pouch demand partner of Yulchon Chemical for pouch material development and pouch production.
The government supported the successful achievement of the cooperative model through government participation in technology development, policy financial support, tax support, manpower support, and expedited administrative procedures.
The government has discovered a total of 45 cooperative models, focusing on 100 key strategic items, since the first introduction of the sub-ministerial cooperation model in November 2019. It provides package support for taxation and policy finance, such as special cases and tax reductions.
Although there are still many tasks in progress, cooperation cases between supply and demand companies such as large and small businesses are spreading through the cooperative model, contributing greatly to the early localization of core items and response to the supply chain, such as semiconductors and rare earths for vehicles.
Upon completion of the project, new investment of 2.4 trillion won, including facility investment and overseas M&A, will occur, employment effect of about 3,700 people, and domestic production of about 3 trillion won.
Minister Moon said at the meeting that day, “The past two years have been valuable time that has laid the foundation for the advancement of our sub-manager industry. We will do our best to become a small manager industry.”
Inquiries: Ministry of Trade, Industry and Energy (044-203-4922)
