[THE INVESTOR] The government announced on Oct. 19 that it will make an additional input of 1.5 trillion won (US$1.33 billion) into a project by 2020 to improve outdated facilities of state-sponsored industrial complexes in a way to attract more firms.

Under the plan, industrial parks will be transformed into industry-university research clusters to strengthen their role in spearheading the country‘s production, employment and research and development, according to the government’s joint press release.

There are currently 1,124 government-designated industrial complexes throughout the country, with the first one starting in southwestern Seoul in 1964. They have contributed to South Korea’s rapid economic development for the past decades as they took up 70.9 percent of the country’s output and 47.9 percent of employment.

But their presence has been decreasing as old facilities and poor incentives have failed to lure high-tech firms and young job seekers.

In order to revive their role in the economy, the South Korean government has spent 600 billion won to improve research infrastructure in the areas since 2013 and will set aside an additional 1.5 trillion won to attract corporate research centers and universities and help them carry out joint research projects.

(theinvestor@heraldcorp.com)