S.Korea eyes manufacturing boost via market access, R&D funding

South Korea’s trade ministry announced on Monday a plan to strengthen its manufacturing sector by expanding entry into such markets as China and Russia, and boosting funding for technologies including artificial intelligence (AI) and autonomous driving.

As the first detailed industrial policy plan announced since President Moon Jae-in was elected in May, the road map seeks to address weaknesses in Asia’s fourth-largest economy.

The trade ministry plans to help fund research and development with a 144.5 billion won ($132.82 million) budget over five years for key autonomous driving technologies and additional budgets for other technologies, and ease regulations.

The ministry will encourage private investment by creating a 300 billion won fund by 2018, partly backed by the government as it tries to bolster the competitive edge of its manufacturers.

China and other emerging economies are making rapid inroads in key industries that export-driven South Korea has excelled in.

The trade ministry said it will expand market entry in China, Russia, Central Asia and Southeast Asian countries and regions, targeting industries such as petrochemicals, infrastructure, technology, healthcare, vehicles, energy, components and steel.

The ministry said its plans were driven by a strategy to respond to the growing risk of global trade protectionism, but the statement didn’t elaborate.

To support future growth industries, the government aims to have self-driving cars on the road by 2020 with 350,000 electric cars in services by 2022.

The government will also throw its weight behind AI and the use of data in connecting appliances and providing healthcare.