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South Korea will spend 367.9 billion in research & development (R&D) on key technologies for next-generation vehicles this year, up 37 percent from the previous year, to help local automakers take the lead in the market.
Finance Minister Hong Nam-ki said the government will focus on six key technologies crucial to developing next-generation cars, including automotive chips, batteries, hydrogen fuel cells, and self-driving communications.
He added that it is urgent to preemptively invest in R&D on next-generation vehicles as competition has deepened to secure key technology.
President Moon Jae-in vowed strong and various support for the local semiconductor sector in a meeting with business leaders Thursday,
Hyundai Motor Co. has suspended part of its plants in the country due to a shortage of electronics parts amid a global supply crunch of automotive chips.
