South Korea to spend $6.5 billion in R&D to curb reliance on Japan imports

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South Korea to spend $6.5 billion in R&D to curb reliance on Japan imports

In context of an escalated trade abrasion between Japan and South Korea, two noisy neighbours beside the North-Pacific with century-old history of wars, struggles and grumbles, South Korea’s government had issued a public statement on Monday, the 5th of August 2019, saying that Seoul was sketching out a plan to invest as many as $6.48 billion (7.8 trillion won) over the next seven years to ramp up research and development (R&D) of its local parts, materials and equipment, aimed at curbing out the East Asian nation’s mass-scale dependency on Japanese imports.

In point of fact, latest move of the South Korea’s government came forth after Tokyo had rubbed South Korea out of its “white-listed” country-list and slumped Seoul’s fast-tract export status on last Friday (August 2nd).

As part of its latest $6.5 billion R&D plan, South Korea has been orchestrating a plan to fuel up its self-sufficiency for about 100 key components, equipment and materials required to roll out an upscaled and independent output of chips, displays, automobiles, displays alongside other products.

Citing that South Korea’s latest investment on R&D was targeted to brush aside its structural weakness in supply chains of multiple critical industries likes of smartphones, memory chips, displays and a many more, South Korean government said in its Friday’s (August 2nd) statement, “The plan aims to address structural weakness in South Korea’s materials, parts and equipment sector, which heavily depends on a particular country,” while voicing a much-vociferous tone, South Korea’s industry minister, Sung Yun-Mo said at a press briefing, “We want to turn the crisis into an opportunity for the materials, parts and equipment industry”.