South Korean Electronics Sector will invest 4 Trillion Won in Developing Led
Tuesday, 8. December 2009
The Korea Telecoms reported that according to government officials, the electronic industry of South Korea is planning to develop light emitting diode (LED) technologies by investing 4 Trillion Won in the next three years.
This plan was decided in the meeting held between the senior officials of the top leading companies in this industry with the Knowledge Economy Minister, Choi Kyung-hwan. The main motive behind this huge investment is to build development and research expertise in the country and compete in the LED sector till 2012.
In this meeting, the executives of the leading companies said that they would be soon starting to operate Metal Organic Chemical Vapor Deposition (MOCVD) machines that are built locally, to produce the key components of LED manufacturing.
Till now the domestic industry was highly depending upon the imports of MOCVDs but now it is expected that the MOCVD machine will come to the market in 2010. The industry will get great help from this.
The first commercial LED TV sets were first manufactured by the South Korean companies and thus make the country the leader in the LED industry. In 2008, the led market level of the South Korean companies in the global LED market was 9.9%, but further it is expected that it will grow to 21.2% in 2009, while it may touch to 28.9% in 2010.
Next month, the South Korean government will disclose a comprehensive plan which will further support the companies to develop new growth engines.
The business electronic industry has asked the government to extend the tax breaks, because the temporary investments have higher risks compared to that of long term plans. The government said that after discussing the matter with the related ministers and the lawmakers, the decision on tax breaks will be made. The South Korean government has plan to list down new engine growth items to attract investments.
According to analysis, it is found that over past few years the electronics industry is making remarkable growth globally. As the business industry is struggling lot to get the requirement for manufacturing eco-friendly products, so the governments should also offer incentives along with extended tax breaks to the industry.
