The government will likely approve plans by Samsung Electronics and LG Display to build LCD plants in China.
In a meeting with reporters in Beijing on Tuesday Knowledge Economy Minister Choi Kyung-hwan said, "The two companies are eager to advance into China and the Chinese government is trying to attract them. Given the ever-growing market of China, we are taking a positive look at their plans."
China is emerging as the world's largest TV market, but Seoul is concerned that key technologies may be leaked if the electronics giants build plants there.
Samsung and LG have submitted plans to build plants in Suzhou and Guangzhou, respectively, in a bid to penetrate the Chinese market before their rivals.
The government will decide next month whether to allow the construction of the plants in a meeting of an industrial technology protection committee, which is chaired by the prime minister.