MOCIE plans to maximize a ripple effect on technical development by increasing support volume this year The Ministry of Commerce, Industry and Energy (MOCIE)is planning to increase its financial support for core parts and materials industries to sharpen their competitive edges. The MOCIE decided to pour a total of 138.2 billion wonthis year, an increase of 18% from last year, into the technical development of parts and materials. Of the 138.2 billion won, 72.4 billion won will be provided to the new 24 large-size development programs on core parts andmaterials for the national key industries including semi-conductors and LCD. The government will continuouslymake its concentrative investments next year as well in the development of such parts, materials and equipment in the sectors that have a high potentiality of growth, following this year. Particularly, the government intends to maximize the ripple effect of its financial support by enlargingthe support volume on those technical development programs that are associated with consuming enterprises so that a lot of newly developed parts and materials could be commercialized as soon as the related developments finish. In this regard, the government plans to greatly increase its support for the technical development projects to be conducted together with consuming firms and to provide 14 billion won to the sole development works associated with research institutes so that technical innovation by small and mid-size venture firms could continue in the development of parts and materials. With regard to the 24 major tasks that the government has designated for consuming enterprises, parts and materials suppliers, academic circles andresearch institutes to participate in, the government made it compulsoryfor consuming firms to submit the 'letter of intent for purchase'to the government so that they guarantee the purchase of the related parts or materials when developed. The number of items, for which the government will provide the financial support, has increased to 182 this year from the previous year's 160. Among them, a total of 52 are new ones designatedthis year from such sectors as core parts of textile machinery, rolling stock parts and growth engine-related parts for the next generation. Meanwhile, if all the technical developmentprograms of those parts and materials thatbegin this year finish in 2008, it would bring about the import replacement effect worth 9.82 trillion won, export increase effect worth 1.06 trillion won, creating new jobs for 21,000 people, the MOCIE estimated. kimdy@snmnews.com