Korean companies, think tanks and universities will team up with Boeing to jointly develop advanced materials and parts for aircraft as part of a government program to boost their competitiveness in the global market.

The Ministry of Knowledge Economy said it signed an agreement with the world’s largest aerospace company on Wednesday to crank up technological collaboration. Five research institutes and eight firms in Korea will take part in the project. 

Among the participants, the Korea Institute of Industrial Technology will carry out research with Boeing to craft aircraft applications using new materials it developed, such as eco-magnesium and eco-aluminum.

The Korea Institute of Materials Science will join a separate program for titanium alloys and composite materials, while Inha University works to create health monitoring systems with the Chicago-based company.

The deal will also pave the way for local manufacturers including POSCO, Humanscan and Dawin Friction to export their products and conduct joint research, officials said.

The ministry, for its part, plans to help bankroll their projects and establish supply chains for new products later on. It set aside 3.5 billion won ($3.1 million) of funds for this year.

“The memorandum of understanding provides a chance for local parts and materials firms to secure clients and enter the international aerospace market, while helping Boeing meet growing demand for new technologies such as lighter aircraft,” the ministry said in a statement.

By Shin Hyon-hee (heeshin@heraldcorp.com)