South Korea's public investment in future industrial materials and nanotechnology is set to jump 136 percent by 2020 as the government seeks to improve its global competitiveness in cutting-edge technology industries, foreign media reported.

The investment totaled 233.6 billion won (1 yuan), up 136 percent from 98.8 billion won this year, according to a report on the website of Taiwan's economic daily on Dec. 22, citing the yonhap news agency. The investment will focus on buying original technology, expanding research and development infrastructure and building a robust business ecosystem, south Korean authorities said on the 22 dec.

According to the report, related research and development spending is 128 billion won.

In research and development, huge investments will be made next year in advanced nanotechnology and materials industries, ranging from tiny sensors and components to healthcare, energy and the environment. Some of the funds will be used to help develop and patent key new technologies; The rest of the money will help South Korea reduce its dependence on foreign components.

The south Korean government has also invested heavily in expanding production of advanced semiconductor materials in the country, and will also invest in bringing technology and products to market, the report said.

According to the website of Taiwan's united daily news on December 22, global investment Banks recently issued a research note that the semiconductor industry in South Korea is expected to recover next year, driving the KOSPI stock index to 2300 points. The KOSPI has averaged 2,100 this year.

BNP paribas raised its rating on south Korean shares in recent days, saying the semiconductor market cycle had bottomed out and would start to climb next year, heralding a cyclical economic recovery.

In its report, the bank noted that the inventory glut would taper off next year, demand for data centers and smartphone makers would recover, and the KOSPI average was 2,325, the report said.

A recent report from credit suisse also pointed to a 30 percent increase in earnings next year for the semiconductor, automotive and petrochemical industries in South Korea, with the chip sector the best performer. Morgan Stanley, a U.S. investment bank, also lifted south Korean shares last month on steady chip prices, normal inventory and increased demand for 5G services.

However, citi is pessimistic about the performance of south Korean stocks next year, writing in a research note on Nov. 29 that "while the market enters the New Year, we would rather wait for the next decline before turning bullish."