South Korea's nano convergence industry sales reached 138.69 trillion won ($122.63 billion) in 2013 as the country moves to build up the sector as a future economic growth engine, government data showed Tuesday.

According to the Ministry of Trade, Industry and Energy, the combined sales of 541 local leading nanotech companies rose 6.6 percent on-year, with research and development investments surging 35.9 percent to 8.49 trillion won.

The sales increase was in contrast to the minus 1 percent growth posted by the country's manufacturing sector as a whole.

Nano convergence refers to using technologies to control materials on a nanoscale to create new elements and systems with improved physical properties. Such advances can fuel growth of more value-added products in such areas as information technology, semiconductors and biotech industries that all have good growth potential.

The latest data showed nano convergence accounting for 9.3 percent of the country's manufacturing sector, up from 8.6 percent in 2012.

The increase is a reflection of more locally made products making use of nanotechnology materials and systems.

The ministry's latest tally, however, showed the number of people working in the nano convergence industrial sector backtracking 0.5 percent to 150,147, although per capita productivity rose to 920 million won, up 7.1 percent compared with the year before.

The industry ministry's report showed that of companies checked that posted two years of consecutive sales growth, in 2012 and 2013, 69, or 12.8 percent, of the total belonged to large conglomerates, while medium enterprises accounted for 29.2 percent, or 158 companies. The rest were small firms.

The overall number of nanotech companies belonging to conglomerates was not large, but they accounted for 97.7 percent of all sales in the one-year period, as well as controlling 96.7 percent of R&D and 92.4 percent of all people hired.

By business area, 82 companies engaged in nanotechnology work dealing with electronics, employing 84.8 percent of all workers and generating 87.7 percent of all sales. This sector absorbed 94.9 percent of R&D funding. This was followed by such businesses as nano materials, nano biotech and machinery.

The ministry's findings then showed that 72.9 percent of all R&D funding came from within companies, with private sector and government support accounting for 16.4 percent and 10.7 percent of the total, respectively.

"The government aims to use the nano convergence industry as a springboard to innovate the country's industry, create new markets and build up related infrastructure," the ministry said.

To meet such goals policymakers are in the process of establishing long-term investment and support plans that can boost the sector, it said. (Yonhap)