The South Korean government plans to invest 155 billion won (US$122 million) into 26 commercial projects to boost up new growth industries by mid 2010, the economy ministry said on Wednesday.

The government is designing the so-called short-term research and development funds to support companies in related areas, the Ministry of Knowledge and Economy said.

Under the recent plan, companies in eight main industrial areas, such as bio-pharmaceuticals, robotics, desalination plants, light emitting diodes, new semiconductors, displays, green cars and clean coal will be receiving the funds.

The companies include large conglomerates such as Samsung Electronics Co., Hyundai Motor Co., SK Energy Co., LG Electronics and POSCO, as well as small-sized companies.

"The focus is to facilitate development of commercially applicable technologies by both large conglomerates and small and medium enterprises that can have an impact on the overall economy," said the deputy minister of the economy ministry.

Companies to get the funds are expected to invest 1.86 trillion won, or US$1.46 billion, into facility investments by 2011, the official said, adding that the investment is likely to create some 6,800 high quality jobs by the first half of 2011.

Meanwhile, the ministry said that although there are some concerns that the plan has some conflicting points with the World Trade Organization rules on subsidies, it expects no dispute to arise.

(Xinhua News Agency July 8, 2009)