The government will designate semiconductors, secondary batteries and vaccines as strategic technologies critical to the national economy and security, sharply expanding tax breaks and monetary support for the sectors.

The government on Monday announced its economic policy direction for the second half of the year, which included the measures.

On the belief that South Korea should gain a global competitive edge in chips, batteries and vaccines, the government will offer a maximum 50 percent tax deduction on related research and development.

It will also support facility investment through tax breaks and low-interest loans.

Additionally, the government will push for special legislation on the protection of strategic sectors that will contain measures on deregulation, fostering talent and safeguarding core technologies.