Planning and Budget Office (Photo provided by the Planning and Budget Office)
South Korea’s Planning and Budget Office said it will prepare fiscal investment measures to strengthen the competitiveness of key industries.
The office made the announcement at a meeting held on the 29th at the Seoul Regional Procurement Service to discuss “strategic fiscal investment measures to strengthen industrial competitiveness.”
The meeting was convened as global technology competition intensifies around advanced industries such as semiconductors and artificial intelligence, and as supply-chain instability grows amid the war in the Middle East. The government said it plans to reflect views from industry as it specifies future budget planning and fiscal support priorities.
Participants agreed that, with global competition escalating, the government needs to make proactive and active fiscal investments to help companies maintain competitiveness.
Hong Seong-uk, head of the Industrial Data Analysis Office at the Korea Institute for Industrial Economics and Trade, said growth has continued on the back of strong exports in semiconductors and defense. But he warned that risks remain, citing stronger protectionism, external uncertainty including the Middle East war, and expanded investment in advanced industries centered on the G2. He said it is “a time when a cooperative response between the government and companies is needed.”
Industry representatives also called for tailored responses by sector. Kim Kyung-hee, a vice president at Samsung Heavy Industries, said shipbuilding faces both crisis factors from China’s catch-up and opportunities such as South Korea-U.S. cooperation in shipbuilding. She emphasized that active government support is needed to secure future technology competitiveness, including in eco-friendly ships.
Cho Yong-beom, director general of the Budget Office at the Planning and Budget Office, said the world is at a turning point where countries are being asked to play a more active role as investors. He said the office will use feedback from the field to address corporate difficulties in advance and prepare fiscal investment measures to strengthen key industries’ competitiveness.
The Planning and Budget Office said it will consult with relevant ministries, based on the meeting’s results, to draw up specific fiscal support measures.
The office made the announcement at a meeting held on the 29th at the Seoul Regional Procurement Service to discuss “strategic fiscal investment measures to strengthen industrial competitiveness.”
The meeting was convened as global technology competition intensifies around advanced industries such as semiconductors and artificial intelligence, and as supply-chain instability grows amid the war in the Middle East. The government said it plans to reflect views from industry as it specifies future budget planning and fiscal support priorities.
Participants agreed that, with global competition escalating, the government needs to make proactive and active fiscal investments to help companies maintain competitiveness.
Hong Seong-uk, head of the Industrial Data Analysis Office at the Korea Institute for Industrial Economics and Trade, said growth has continued on the back of strong exports in semiconductors and defense. But he warned that risks remain, citing stronger protectionism, external uncertainty including the Middle East war, and expanded investment in advanced industries centered on the G2. He said it is “a time when a cooperative response between the government and companies is needed.”
Industry representatives also called for tailored responses by sector. Kim Kyung-hee, a vice president at Samsung Heavy Industries, said shipbuilding faces both crisis factors from China’s catch-up and opportunities such as South Korea-U.S. cooperation in shipbuilding. She emphasized that active government support is needed to secure future technology competitiveness, including in eco-friendly ships.
Cho Yong-beom, director general of the Budget Office at the Planning and Budget Office, said the world is at a turning point where countries are being asked to play a more active role as investors. He said the office will use feedback from the field to address corporate difficulties in advance and prepare fiscal investment measures to strengthen key industries’ competitiveness.
The Planning and Budget Office said it will consult with relevant ministries, based on the meeting’s results, to draw up specific fiscal support measures.
* This article has been translated by AI.
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