KIET (Korea Institute for Industrial Economics and Trade) 2. Parts and Materials Technology Development Project 1. Summary ○ For the continuous development of the domestic parts and materials industry, support the development of the core parts and materials technology that can participate in global sourcing and are necessary for the technology innovation and the competitiveness enhancement of the parts and materials industry, including other industrial areas. 2. Support areas ○ Items that can predominate the future market with great technological and economic ripple effect ○ Parts and materials that can participate in global sourcing market with great effect of trade structure improvement 3. Qualified applicants ○ Corporate enterprise that owns an affiliated research center * The qualification car vary sightly for each detailed project. 4. Support contents Project ○ Strengthening the material competitiveness core - WPM (No plan for new support) Support period Support contents - - Within 9 years Core material technology development original Within 9 years Strategic core technology development material Within 7 years Core defense material technology development (No plan for new support) Within 7 years http://www.investkorea.org/, 2015 Develop 10 core materials (WPM) that can be commercialized, which would be the first in the world, or can create the market and continuously dominate ist. To strengthen the technological competitiveness of the material industry, develop an original core technology that can improve the critical performance and create new functions. Develop the strategic core materials that can dominate the world market, in case the technological development is successful, but has great risks for the independent development of the private sector. Develop core defense materials that can be used by private industries, as well as the army, navy, and air force for military supplies until 2020. 1 ○ Convergence material component development and - - Develop a core parts and materials technology that can participate in global sourcing and is necessary for the technology innovation and competitiveness enhancement of the material and component industry. Develop a venture-type special material technology to - Venture-type special material Within 3 enable smalland medium-sized enterprises to technology development years predominate the global market in specific areas and niche markets. To improve the commercialization of the development task, as Approximat - Investor-connected type of well as support the investor-connected type development task ely within 3 technology development connected with private capital business feasibility evaluation years (investment attraction) - Consumer-connected type of technology development Within 5 years 5. Promotional system and procedure ○ Promotional system MOTIE Project implementation and announcement KEIT KITIA Project promotion and planning, evaluation, and project management Investment assessment and project feasibility evaluation (applicable to investor-connected type) Evaluation committee New, interim, and phased evaluation Lead agency Participating agency ▪ Agreement conclusion ▪ Technology development ▪ Agreement conclusion ▪ Technology development ○ Promotional procedure - Investor-connected type of a technology development project ▪ Announcement (MOTIE) ⇨ Technology evaluation (KEIT) Application receipt (KEIT) ⇨ ⇨ Prior study (KEIT) Investment briefing, investment assessment (KITIA) ⇨ ⇨ Business operator decision, agreement conclusion, and governmental contribution support (MOTIE, KEIT) - Other projects ▪ Task planning (KEIT) ⇨ Announcement (MOTIE) ⇨ Receipt and prior study (KEIT) ⇨ Technology evaluation (KEIT) ⇨ Agreement conclusion, and governmental contribution support (MOTIE, KEIT) http://www.investkorea.org/, 2015 2 6. Promotional schedule Project Task planning Support task announcement and receipt Selection evaluation Agreement and payment of project cost - - - - 2014.09–12 2015.01–2 2015.03–04 2015.05 2014.09 – 2015.02 2015.03–04 2015.05 2015.06 - - - - 2014.09 – 2015.02 2015.03–04 2015.05 2015.06 2014.09–12 2015.01–02 2015.03–04 2015.05 2014.09–12 2015.01–02 2015.03–04 2015.05 ○ Core material competitiveness strengthening - WPM Core material original technology development Strategic core material technology development - Core defense material technology development ○ Convergence material and component development - Consumer-connected type of technology development Venture-type special material technology development - Investor-connected type of technology development 7. Support scale: KRW 278.818 billion (new: KRW 32.1 billion, continued: KRW 246.718 billion) (Unit: KRW 1 million) Project ○ Core material strengthening competitiveness - WPM Core material original technology development - Strategic core material technology development Core defense material technology development ○ Convergence material and component development Consumer-connected type technology development - Venture-type special material technology development Investor-connected type technology development 2015 Budget New Continued 165,817 8,100 157,717 59,795 - 59,795 40,450 2,100 38,350 52,072 6,000 46,072 13,500 - 13,500 113,001 24,000 89,001 46,436 10,000 36,436 18,715 1,500 17,215 47,850 12,500 35,350 * The budget for the detailed projects is subject to change. In the above table, the evaluation and management cost was excluded. http://www.investkorea.org/, 2015 3 8. Concentrated promotional items ○ Considering the characteristics of the material (high risk, high return), support the technological development through continuous and long-term investment (strengthen the core material competitiveness). ○ Develop a core material component technology that can participate in global sourcing and is necessary for material and component industry competitiveness enhancement (develop the convergence material and component). 9. New application competition rate for the past three years Project ○ Core material strengthening 2012 2013 2014 - - - - - 9.4:1 1.45:1 2.4:1 2.8:1 1.40:1 2.6:1 - 1.5:1 2.3:1 2.6:1 6.8:1 4.9:1 4.3:1 2.3:1 3.4:1 3.3:1 competitiveness - WPM Core material original technology development - Strategic core material technology development Core defense material technology development ○ Convergence material and component development - Consumer-connected type of technology development - Venture-type special material technology development - Investor-connected type of technology development http://www.investkorea.org/, 2015 4 10. The first-year average governmental contribution to new support tasks for the past three years (Unit: KRW 1 million) Project ○ Core material strengthening 2012 2013 2014 - - - - - 361 1,909 1,750 1,281 1,200 840 - 1,770 847 1,133 800 519 538 634 443 competitiveness - WPM Core material original technology development - Strategic core material technology development Core defense material technology development ○ Convergence material and component development - Consumer-connected type of technology development - Venture-type special material technology development - Investor-connected type of technology development * The budget for the detailed projects is subject to change. In the above table, the evaluation and management cost was excluded. ### http://www.investkorea.org/, 2015 5
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