[fn Editorial] Unleashing Bold Innovation to Enhance Competitiveness in Materials, Parts, and Equipment

On the 23rd, the government convened the 14th Committee for Strengthening Competitiveness of Materials, Parts and Equipment and finalized the second Basic Plan for Strengthening the Competitiveness of the Materials, Parts, and Equipment Industry. This five-year plan will be implemented from next year through 2030. The new plan focuses on three main pillars. First, it will make concentrated investments in four key challenge technologies: market-leading, transformative, regulatory response, and supply chain security. Second, the government will fully launch the 'Top 15 Super Eul Project,' investing over 20 billion KRW per project to foster world-class companies. Lastly, by combining Artificial Intelligence (AI) with Research and Development (R&D), the plan aims to expand the current database of 4.3 million material data entries to over 15 million by 2030, while also promoting five major AI New Materials Development Projects.
Expectations for this newly established Basic Plan are high. For Korea’s industrial competitiveness to advance rather than regress, the effectiveness of this second Basic Plan for Materials, Parts, and Equipment must be clearly demonstrated. In 2019, following Japan’s painful export restrictions on semiconductor materials, Korea responded by formulating the first Basic Plan in January 2020. However, five years later, the results have been disappointing. Export volumes in this sector have fallen far short of expectations, and the equipment industry’s dependence on imports from Japan has actually increased. Korea still struggles to overcome the shadow cast by Japan’s competitiveness in materials, parts, and equipment.
Moreover, Korea now faces the risk of losing its competitive edge to China, which is rapidly catching up, backed by government subsidies. As a result, Korea’s trade surplus in materials, parts, and equipment with China has significantly decreased. Despite the government’s strong support and calls for self-reliance in this sector, there are growing concerns that Korea is falling further behind in global competition rather than achieving tangible results.
This is why the newly announced second Basic Plan is so crucial. Korea must approach this as a fresh start and strive to enhance global competitiveness. In particular, with the advent of the AI era, fostering the materials, parts, and equipment sector requires a new approach. In this regard, the government’s emphasis on integrating AI and R&D, as well as launching AI New Materials Development Projects, is timely. As advanced technologies such as AI semiconductors and quantum computing continue to develop, the importance of materials, parts, and equipment will only increase. Cutting-edge AI systems cannot function without the organic integration of high-precision materials, parts, and equipment.
Furthermore, efforts must be made to strengthen the entire ecosystem for materials, parts, and equipment. It is essential to move beyond a large corporation-centered approach and create a structure where small and medium-sized enterprises, mid-sized companies, and startups can grow together. The government’s plan to significantly increase the number of leading companies with core strategic technologies and to designate ten additional Specialized Complexes is a welcome step.
Countries such as the United States of America (USA) and China are racing to invest in domestic industrial production facilities. To connect domestic production lines with global supply chains, Korea must secure independent competitiveness in materials, parts, and equipment. In today’s world, marked by US-China rivalry, supply chain restructuring, and the AI revolution, competitiveness in materials, parts, and equipment is synonymous with national competitiveness. The government must ensure that this second Basic Plan is not merely a declaration but a concrete roadmap that delivers real results. Without concrete policy measures such as securing budgets, regulatory reform, workforce development, and market expansion, the Basic Plan will be rendered meaningless. Korea cannot afford to repeat the trial and error of the past five years.