The government is reorganizing the industry-academia-research councils, which were previously composed of separate industrial complexes, into sector-based groups. The number of councils, which were scattered throughout the country, will be reduced from 79 to 25, while scaling up their size. This change comes in response to concerns that existing councils predominantly engaged in networking activities within their respective regions. The government aims to encourage corporations in similar and diverse industries to collaborate more actively across physical spaces by establishing a 'super-regional industry-academia-research council' based on sectors.
◇90.2% of existing council networking conducted within the same region
According to the government on the 6th, the Ministry of Trade, Industry and Energy published a revised notification on the 'Industrial Complex Competitiveness Enhancement Project Promotion Plan,' which contains these details on December 31 of last year.
The plan was first established in 2005. It is centered on forming and operating specific technology-based 'industry-academia-research councils' to facilitate interaction and connection between corporations, nearby universities, research institutes, and support organizations located in industrial complexes. The government has encouraged networking activities and joint research and development through these councils to support the entire process of industrial activities including mutual cooperation, collective learning, information sharing, and technology commercialization.
The government operated the councils in a public-led manner until 2020, and transitioned to a system where self-directed councils operated by the private sector began in 2021. A nationwide recruitment was conducted, leading to the selection of 79 councils across 44 industrial complexes focused on 11 key investment sectors including semiconductors, displays, materials, parts, and equipment, automobiles, and shipbuilding.
The core of this revised notification is to transition the existing industry-academia-research councils into 25 'super-regional industry-academia-research councils.' The government plans to establish governing bodies for the councils centered on ▲industrial complexes + corporations ▲industrial complexes + associations, as well as those focused on academia such as ▲industrial complexes + convergence centers ▲industrial complexes + universities.
Participating organizations will include universities, research institutes, and corporations, as well as venture capitalists, accelerators, industrial designers, and technology transfer organizations. The aim is to expand private investment and promote the creation of an industrial ecosystem linked to corporate growth. Additionally, the government plans to designate 'leading corporations' to strengthen the operation of councils led by the private sector.
The reason the government is pursuing the transition to super-regional councils is due to the issue that existing councils, composed of individual industrial complexes, were insufficient in facilitating interlinkage networking activities between similar and different industries.
According to a survey by the Ministry of Trade, Industry and Energy, 90.2% of networking activities conducted by the councils in 2023 took place within the same metropolitan area. A government official explained that "there was a need to establish 'super-regional councils' for linking and collaborating between regions and industrial complexes based on spatial flexibility and to create a collaborative ecosystem."
◇Cancellation of council selection in case of poor performance…additional support for ‘supply-demand-linked’ research and development
However, the government has decided to cancel the selection of councils that perform poorly through annual inspections and evaluations every two years, and to newly select and support new councils. This is a measure to encourage the councils to be more proactive in linkage and cooperation.
For this year, the total project cost per council is set at 223 million won, with the government supporting 200 million won, while private corporations will bear 23 million won. The national budget for support will be utilized for filing intellectual property rights, producing prototypes, marketing, discovering and planning joint projects, and holding technical seminars.
A Ministry of Trade, Industry and Energy official explained, "To enhance the accountability of councils, activate networking, and establish a foundation for self-sustainability, private entities will be required to bear more than 10% of the total project cost."
Since the previous industry-academia-research councils have delivered visible results, the government expects that the performance of the councils will improve further with this measure. According to an analysis by the Ministry of Trade, Industry and Energy of the business performance of participating corporations in 2023, it was found that operating profits two years after the end of participation in the councils increased by 106.3% compared to those that did not participate but were in the same industry and of similar scale.
The government has also prepared additional research and development support programs. Starting this year, it will support the councils' 'joint response to international norms' to overcome global trade barriers. The government plans to invest up to 1.6 billion won of national funding for related councils over a period of two years. A government official noted that "from the preliminary planning stage of the project, demand corporations are participating and being linked to procurement," adding that it is a 'supply-demand-linked' program that promotes mutual growth and a positive cycle between demand and supply corporations.
The Ministry of Trade, Industry and Energy plans to hold the 'Super-Regional Industry-Academia-Research Council Launch Ceremony' as early as this month. The budget for supporting the councils this year has been set at 17 billion won. A Ministry official stated, "We will continue to push for an expansion of the budget size," adding, "First, we plan to solidify the current budget for efficient execution."