The South Korean government will increase the state budget to support the purchase of electric and hydrogen-powered vehicles by 32 percent to one-point-four trillion won this year, in a bid to nurture the next-generation vehicle sector.

The announcement comes as South Korea has set the non-memory chip, biohealth and next-generation vehicle sectors as the "Big Three" industries to nurture job creation and innovation-driven growth.

At a meeting with officials on Friday, Finance Minister Hong Nam-ki said the government will double support for electric trucks, which have a bigger environmental impact.

Subsidies for the eco-friendly vehicles will be determined by their efficiency and price range to encourage the production of more efficient and affordable cars, and grants will be introduced for hydrogen trucks and buses.

Regarding the system semiconductor sector, the government plans to support smaller firms and venture companies in the fabless industry.

On biohealth, the government will encourage local hospitals to use more domestically developed medical devices.