- The government announces plans to invest $139 million to foster this promising sector by 2030
According to The Korea Economic Daily article published on December 7, 2022, the South Korean government will invest 185 billion won ($139.6 million) by 2030 in the development of technology for carbon composite materials, which are considered crucial for the future of the aerospace and defense sectors.
The nation will also develop this promising area as its "second steel industry" by promoting three aerospace demonstration projects worth 100 billion won.
The Ministry of Trade, Industry and Energy on Tuesday announced these plans at the fourth Industrial Strategy Roundtable chaired by Minister Lee Chang-yang at the Korea Chamber of Commerce and Industry in Seoul.
Carbon composite materials are high-strength and lightweight intermediate materials produced by adding plastic resin to carbon fiber. The materials are over 10 times stronger than iron but at a fourth of the weight.
Through hyped as a replacement for iron given their numerous potential applications ranging from fishing rods to construction materials, cars and aircraft, such materials have stimulated little demand as their costs are around double.
The government, however, forecasts that the global market for carbon composite materials will jump to 100 trillion won by 2030 as the burgeoning eras of the aerospace and defense industry will stress the importance of technology for reducing a material's weight.
The plan is to invest 185 billion won by 2030 in the development of national technological independence in high-performance carbon composite materials and "half-price" carbon fiber.
In August, the nation announced that it became the third country to secure original technology for making high-strength carbon fiber with tensile strength of 6.4GPa. The government seeks to set up a mass production system for the material by 2025.
The goal is to secure domestic technology by 2028 in ultra-strong carbon fibers 15 times stronger than iron and those with ultra elasticity 13 times stronger.
To halve the price of carbon fiber from $20 per kg to $10, the government will seek to develop low-cost raw materials and process technology that consumes low energy.
In addition, a demonstration project will directly install components made of carbon composite materials on four-seater urban air mobility vehicles, small projectiles and small low-orbit satellites, demand for which is expected to rise at home and abroad.
The ministry will invest about 100 billion won to develop, assemble and use components made from such materials in projectives.
Financial and certification support will go to domestic companies that plan investment of 2.1 trillion won in plants to produce the materials by 2030.
Secondary annual compensation worth 300 billion won is slated for related corporate loans for the materials as the government will compensate financial institutions for interest rate differences so that companies can raise funds at rates lower than those of the market. And up to 100 million won in support will subsidize the cost of acquiring international certification.
In opening comments at the event, Hyosung Group Chairman Cho Hyun-joon said, "The importance of carbon fiber is growing by the day and enough to be dubbed the rice of the industries of the future," adding, "Through government support, Hyosung for the third time in the world recently developed ultra-strong carbon fiber used in the aerospace and defense industries."
"Compared to advanced companies in countries like the US and Japan, we have a long way to go," he added. "We're also highly lacking in the development of related industrial ecosystems, which is crucial for raising global competitiveness."
"I hope that everyone takes a long breath and actively supports the formation of the carbon industry ecosystem."
Minister Lee said, "Similar to how the strategic development of steel formed the basis for the nation's development of cars and shipbuilding, the localization of carbon composite materials is critical," adding, "The public and private sectors should cooperate to promote national self-sufficiency in carbon composite materials, a sector called the rice of the industries of the future."
