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S.Korea to support development of new export items

Xinhua, July 7, 2016 Adjust font size:

South Korea's government will support the development of new export items such as electric vehicles, hydrogen-powered cars, system semiconductors and cosmetics to bolster lackluster exports, which account for about half of the export-driven economy.

President Park Geun-hye held the 10th meeting to promote trade and investment on Thursday, announcing a support plan to develop new export items. The meeting came as the country maintained the longest monthly decline in exports, while industrial competitiveness becomes weak in the global market amid fierce competition.

The government plans to raise the number of annual electric vehicle exports to about 200,000 shipments by 2020, up from some 12,000 shipments in 2015. This would increase the global market share to over 10 percent.

To increase the driving distance of electric vehicles, the project to develop high-density electric battery will be launched in the second half, while around 30,000 electricity-recharging stations will be built nationwide. Burden for consumers will be lowered by exempting acquisition tax, insurance premium, expressway toll and parking fee.

The government will increase the number of hydrogen-powered car exports to 14,000 by 2020. The number of hydrogen-recharging stations will be increased from the current 10 to 100 by 2020, while exempting consumption tax and acquisition tax.

About 200 billion won (173 million U.S. dollars) of funds will be created to development system semiconductors, whose global market more than triple the memory chip market. South Korea's market share in the system chip market stands merely at 4.3 percent. Samsung Electronics and SK Hynix will contribute to forming the funds.

Steel, shipbuilding and petrochemical industries, which have been struggling with overcapacity, will be encouraged to reduce non-core businesses, helping them develop new growth engines by increasing R&D investment.

The government will also foster premium consumer goods, such as cosmetics, medical equipment and farm goods, by helping companies enter into overseas markets and develop high value-added products. Enditem