South Korea plans to develop new aerospace components and basic materials. The Maeil Business News in Seoul said the government will triple financial support for that industry to 20 billion won from seven billion won by two thousand three.

An official at the Ministry of Commerce, Industry and Energy says the Korea Aerospace Industries Company will play a leading role as the nation aims to do more than just assemble simple parts.

Korean aerospace companies spent 3.3 percent of sales in 1997 and 1998 for research and development, and 1.7 percent in 1999, while their U.S. counterparts spent 11.2 percent a year on average.

Korea Aerospace is seeking a new foreign equity investor that will support global marketing and technology. Talks with a group led by Boeing and BAE Systems over a sale of its equity remains at a standstill.