SEOUL, Dec. 29 (Korea Bizwire) — South Korea said Tuesday it plans to invest around 5 trillion won (US$4.5 billion) in research and development (R&D) projects in 2021 to foster new growth engines while seeking green growth.
The amount marks a 19 percent jump from 4.1 trillion won allocated this year, according to the Ministry of Trade, Industry and Energy.
“The policy reflects the government’s willingness to expand investment in R&D projects in new areas despite the economic fallout from the COVID-19 pandemic,” the ministry said in a statement.
Under the plan, the country plans to spend 1.5 trillion won on fostering materials, parts and equipment segments.
The country has been pushing to beef up the three areas amid growing protectionism around the globe, including the ongoing trade row with Japan.
South Korea also plans to invest 966.5 billion won in the emerging sectors, including non-memory chips, eco-friendly automobiles and biotechnology products. The amount marks a whopping 43 percent jump from 2020.
In line with the country’s green growth policy, South Korea plans to spend 859.2 billion won on R&D projects related to sustainable resources and speed up the growth of the hydrogen economy.
The country earlier set a goal of cutting its greenhouse gas emissions to achieve net zero carbon emissions by 2050.