(Unofficial trnaslation)

I am glad to meet you all.

We're here today with officials from relevant companies and research institutes at this signing ceremony for new investments in carbon fiber. In particular, we are also joined by students studying carbon engineering and new materials as well as those attending Meister (technical) high schools. I wish today’s ceremony will give hope to our students.

Today, Hyosung and Jeollabuk-do province will sign an MOU on new investment in the amount of one trillion won, including for the additional construction of eight carbon fiber production lines.

Hyosung made a bold decision to invest with a strong determination to break away from its dependence on foreign suppliers for advanced materials and to achieve self-sufficiency. The local and central governments have also provided active support.

I’d like to take this opportunity to express my gratitude to Hyosung Chairman Cho Hyun-joon, Jeollabuk-do Governor Song Ha-jin and all the other relevant officials for your efforts.

It has a significant meaning for a private-sector corporation to boldly make preemptive investments in the sector of carbon fiber, a key advanced material. I can also sense the extraordinary resolve and confidence to turn a crisis into an opportunity for a new takeoff. The investment will contribute to not only localizing production of core materials, but also reinvigorating the local economy and creating job opportunities, having the effect of killing three birds with one stone.

I am truly delighted to be able to deliver good news to the people immediately after Liberation Day.

Residents of Jeollabuk-do,

Carbon fiber is called a “dream material” as it is four times lighter than steel yet 10 times as strong. It has boundless potential as it can be used as a substitute for steel in every way.

This material is already being used in ways that touch our lives. At last year’s National Para Games held here in Jeollabuk-do, the torch used was made of carbon fiber. The Korean archery team won gold at the 2016 Summer Olympics in Rio de Janeiro with bows and arrows made of carbon material. Carbon fiber parts produced by domestic manufacturers are used in the fuselages and wings of the newest planes manufactured by Boeing and Airbus.

Its future possibilities are even greater. Carbon fiber will help bring about a paradigm shift in manufacturing when applied to hydrogen-fueled vehicles, wind power generation and various other industries, including defense. The global carbon fiber and composite materials market, which was valued at approximately 30 trillion won in 2015, is projected to more than double by 2025.

However, Korea is a latecomer to the carbon fiber sector. Through trial and error in numerous tests, we’ve been able to develop technologies, but we still lag behind when it comes to competitiveness.

Fortunately, Hyosung finally succeeded with localized production in 2011 and started mass producing carbon fiber for the first time in 2013. One of our strengths is that we have world-class businesses related to defense and hydrogen-fueled cars where carbon fiber is in demand. Carbon fiber exports are also growing immensely by more than 20 percent each year.

A carbon material national industrial complex will also soon be created near here. Carbon material-related businesses and research institutes will move into the complex, establishing a carbon material cluster.

Hyosung’s announcement of its carbon fiber investment plan and the signing of MOUs today between suppliers and buyers are truly significant for our ability to stand self-sufficient in carbon materials. If producers, buyers and the Government join forces and industry, academia and research institutions can generate synergy at the cluster, it will be possible for us to take the lead in the global market in the near future.

Today’s investment signing ceremony will be a starting point for us to step up as a powerhouse in terms of advanced materials. I look forward to seeing many more materials and parts businesses invigorate their investments all across the country.

Residents of Jeollabuk-do and businesspeople,

For the sake of our economy’s sustainable growth, we need new industries to serve as growth engines. The hydrogen economy and carbon fiber industry are the cases.

As of now, competition in the hydrogen-fueled car sector is fierce, and the core material used is none other than carbon fiber. As demand for future cars fueled by hydrogen rises, we’ll see demand for carbon fiber increase greatly.

Hyosung has decided to increase its annual manufacturing capacity by over 10 fold from the current 2,000 tons on a single production line to 24,000 tons on 10 lines. The company has also set the ambitious goal of leapfrogging from the world’s 11th largest manufacturer of carbon fiber currently to the third largest by 2028. In the process, 2,300 jobs are expected to be created as well.

Carbon fiber, itself a high-growth industry, can substantially raise the competitiveness of related industries that utilize the material. It will become the key material in future manufacturing, replacing steel.

The Government will actively assist Hyosung in its resolute implementation of the bold challenges it has taken on.

First, the Government will provide full support for the production of carbon fiber and other core strategic items from the materials industry.

Any domestic industrial structure that is dependent on one particular country must be ameliorated. The Government will select the top 100 key strategic items, including carbon fiber, and invest a large amount – more than 7 trillion won to 8 trillion won – over the next seven years. It will also push for exempting preliminary feasibility studies for essential R&D programs when achieving self-sufficiency is urgent.

The Government will try to quickly nurture materials and parts fields when swift technological development is possible by providing broad support with regard to financial assistance, tax benefits and deregulation. In fields that require adopting overseas technology, efforts will also be made to help secure key technology through M&As.

Most of all, the Government will also actively assist the development of ultra high strength and ultra high modulus carbon fiber to be used in high value-added sectors such as the defense, robot and space industries.

Second, the Government will improve the domestic carbon fiber industry ecosystem by establishing a cooperation model for carbon fiber buyers and suppliers.

If the suppliers of carbon fiber engage in joint development or create other mutually beneficial cooperation models with their buyers, such as automobile and airplane manufacturers, the Government will establish an ecosystem that can improve their competitiveness by providing financial support and tax benefits.

The Government will also help increase the competitiveness of the domestic materials industry by assisting with various demonstration projects and the establishment of test beds.

Third, the Government will strive to nurture carbon industry specialists.

The Government will foster about 9,000 carbon-related researchers and industry professionals by educating employees, undergraduates, graduate and doctoral students over the next 10 years. By doing so, it will make sure that carbon fiber will take root completely across local industry, including small and medium-sized enterprises.

Residents of Jeollabuk-do,

This is only the beginning. We can demonstrate once more Korea’s potential as a manufacturing powerhouse.

As I said in my Liberation Day speech last week, we must reduce our reliance on one particular country for key materials to build “a new nation that cannot be shaken” and become a responsible economic powerhouse. Moreover, we have to further increase the competitiveness of our flagship industries through our strategy for a manufacturing renaissance. We also have to take the lead in the Fourth Industrial Revolution by actively nurturing new future industries such as system semiconductors, biohealth, future automobiles and the hydrogen economy.

Carbon fiber is a key, state-of-the-art material that is considered a root of new future industries. Only when this root is firm, these industries will not be shaken. I hope that the new investment in carbon fiber today will not only improve the competitiveness of Korea’s advanced materials industry but also pump-prime new investment in various fields.

Hyosung and Jeollabuk-do have consistently made joint investments and engaged in technical developments to form a carbon industry cluster. Jeollabuk-do will be able to make a new leap forward by taking this opportunity today. By attracting related industries and expanding investment, we will now be able to bring to fruition the vision and pledge to turn Jeollabuk-do into a carbon industry mecca.

I congratulate you once more on behalf of the people on this new investment and plant expansion. I’m looking forward to the Republic of Korea’s economy regaining its vitality here in Jeollabuk-do and continuing to advance in the future.

Thank you.