South Korea plans to boost next year's state budget for the local parts and materials industries to help them cope with Japan's export curbs.
In a task force meeting Tuesday bringing together the ruling party, government and the presidential office, they said the funds will be directed first and foremost at minimizing the fallout on companies, while in the long run boosting their competitiveness and reducing their dependency on Tokyo.
Although the exact figure has yet to be announced, it's expected to be more than a billion U.S. dollars.
"We've decided to sharply boost spending to support the parts and materials industries in next year's budget proposal and to further increase funding for innovative growth."
On top of the bigger spending, the three sides agreed to waive preliminary feasibility studies for projects worth over 1.3 billion dollars to more quickly bolster the competiveness of the parts and materials industries.
State-led projects worth over 40 million dollars are subject to the tests in order to prevent waste of resources.
The three sides also agreed to swiftly draw up plans for tax benefits and other financial support.
Our task force comprises officials in positions to make swift and effective decisions. We will work as a control tower to come up with coordinated responses between the ruling party, the government and the presidential office."
The government vowed to swiftly implement the supplementary budget passed by parliament earlier this month, and use the current situation as an opportunity to breathe new life into local industries as well as revamp economic fundamentals.
Kim Min-ji, Arirang News.