The South Korean government is set to invest 500 billion won (approximately $4.5 billion) to foster the bio, semiconductor, and clean industries in the Gangwon region as new growth engines. In the bio sector, a 40.5 billion won research and development (R&D) and industrial infrastructure project will be initiated, alongside private investments such as AI data centers, to develop Gangwon into an 'AI and clean industry innovation hub.'
On October 14, Minister of Trade, Industry and Energy Kim Jeong-kwan visited Chuncheon, Gangwon, to hold a signing ceremony for regional industrial development agreements and a meeting with investment companies. This visit marks the eighth stop in the government's 'Five Regions, Three Specializations' initiative.
In August, the government identified three key sectors for growth in Gangwon: smart bio and medical devices, specialized semiconductors and ceramics, and clean resources and tourism. The aim is to enhance regional industrial competitiveness and support increased corporate investment.
The government will begin with a 40.5 billion won R&D and infrastructure project to promote the bio industry. The Ministry of Trade and the Ministry of Food and Drug Safety signed a memorandum of understanding (MOU) to facilitate the AI transition in the bio industry, localize materials, components, and equipment, and stabilize supply chains.
Specifically, 10 billion won will be allocated to a localization project for key components of ultrasound catheters, involving companies like Siemens Healthineers, Taeyang 3C, and Valid until December 2028. Of this, 6.6 billion won will come from the government. The project aims to localize essential sensors and cables based on purchase and verification commitments from Siemens Healthineers.
Additionally, 30.5 billion won will be invested in the Chuncheon Bio Industry Promotion Agency to establish a performance evaluation center for in vitro diagnostic medical devices by 2030. This project includes 15 billion won in government funding and will support medical device performance testing, domestic and international certification consulting, and professional workforce training. The Korea Trade-Investment Promotion Agency (KOTRA) and the Korea Pharmaceutical and Bio-Pharma Manufacturers Association will also establish a cooperation system for sharing export regulation information and developing overseas markets.
During his visit, Minister Kim held discussions with seven investment companies, including Douzone Bizon, Hugel, U-BioLogics, Micoceramics, Bobu High-Tech, LS Cable, and GS AI Infrastructure, to hear about their investment progress and on-site challenges.
The promotion of advanced industries in Gangwon is being pursued in conjunction with existing regional industries. The Gangwon Special Self-Governing Province announced plans in August to link government support across seven areas, including finance, taxation, human resources, R&D, and regulatory exceptions, during the selection of the three growth engines.
The government is also advancing the manufacturing AI transition in regional industrial complexes. The Chuncheon Hupyeong Industrial Complex is the only bio-focused industrial complex among the 13 AX demonstration complexes nationwide and has been implementing an AI transition project in the bio-pharmaceutical materials sector since September of last year. The Ministry of Trade plans to support the establishment of standard data models in the bio sector, assess the AX levels of small and medium-sized enterprises, and promote regulatory innovation centered on the field.
Starting next year, 15 billion won will be allocated to foster a bio-specialized graduate school at Kangwon National University. The Ministry of Trade will support Gangwon in establishing a plan for nurturing the three growth engines within the year and will back companies in fulfilling their investment commitments. Minister Kim stated, "For the growth engine to translate into actual regional growth, corporate investments must be executed as planned. We will carefully review the suggestions made today and work swiftly with Gangwon to resolve any obstacles in the investment implementation process."
Regarding the manufacturing AI transition at Hupyeong Industrial Complex, he emphasized, "M.AX is no longer a matter of choice but a matter of survival," pledging to provide necessary support, including a 5G dedicated network, edge AI data centers, and M.AX academies.
* This article has been translated by AI.
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