Korea Plans $1.6 billion Industrial Textiles Subsidy

Korea Plans $1.6 billion Industrial Textiles Subsidy

News Release

The recent edition of Osaka-based JTN's Asian Textile Weekly reports that the South Korean government has plans to subsidize development of the country's industrial textiles sector at a level of 2 trillion won ($1.6 billion) over the coming decade. The respected journal notes that the step is being taken as a response to the current economic slump. The program will strive to bring the ratio of apparel textiles to industrial textiles to 50-50.

The subsidies will support a new “Technical Center for Industrial Textiles”, aimed at increasing the number of industrial textile firms by more than 1,000 and also to provide direct support for venture companies.

Overinvestment in South Korea's fiber sector during the past decade has expanded production far beyond the needs of the domestic market. The excess product has depressed global fiber markets and has resulted in several anti-dumping findings against the country's fiber exports.