Importance of the Materials-Parts-Equipment Industry
The Materials-Parts-Equipment (MPE) industry is the core foundation of the manufacturing sector. Following Japan's export restrictions in 2019, the government launched full-scale support to enhance self-sufficiency in the MPE industry, and substantial support continues in 2026.
With the growing importance of localizing core materials and components for advanced industries such as semiconductors, displays, and secondary batteries, support for SMEs in these fields has been significantly expanded.
MPE Industry Overview
Competitiveness Enhancement Program Details
The MPE Competitiveness Enhancement Program is broadly divided into three areas: technology development support, demonstration and mass production support, and demand-supply linkage. Companies can select the appropriate support based on their technology level and commercialization stage.
Technology development support funds R&D projects aimed at localizing or advancing core materials, parts, and equipment. Up to KRW 1 billion is available per project, and joint development linked with demand companies is also possible.
Support Types
Application Strategy and Key Points
Competition for the MPE Competitiveness Enhancement Program is intense. Therefore, several key points must be addressed in the business plan.
The most critical factor is linkage with demand companies. If actual users of the developed materials, parts, or equipment participate or sign an MOU, the likelihood of selection increases significantly. It is also important to quantitatively demonstrate import substitution effects and contributions to supply chain stabilization.
Utilizing MPE Specialized Complexes
The government is establishing MPE specialized complexes across the country to foster industrial agglomeration and synergy. Companies located in these complexes can receive additional benefits including R&D support, infrastructure access, and networking opportunities.
Within specialized complexes, collaboration between large corporations and SMEs is facilitated, and shared research facilities and testing equipment are available. Companies in specialized complexes also receive bonus points when applying for R&D projects.
KITIM's Support
The Korea Institute of Technology Innovation Management (KITIM) provides comprehensive support for strengthening the competitiveness of SMEs in the MPE sector. From core technology development project planning and business plan writing to demand company matching and specialized complex residency consulting, KITIM supports every aspect of MPE company growth. Strengthen your MPE competitiveness through KITIM's expert consulting.