Investment in Future Industries

South Korea’s public and private sectors chose 12 new industries, such as electric, autonomous vehicle, robot, IoT home appliances and bio health, as the nation’s new growth engines.
South Korea’s public and private sectors chose 12 new industries, such as electric, autonomous vehicle, robot, IoT home appliances and bio health, as the nation’s new growth engines.

 

Korean public and private sectors chose 12 new industries, such as electric and autonomous vehicle, robot, Internet of Things (IoT) home appliances, bio health, aviation and drone and energy, as the nation’s new growth engines. Accordingly, they are planning to invest 7 trillion won (US$5.86 billion) in research and development in these sectors in the next five years, and double exports in the new industries and create 380,000 more related jobs by 2025.

The Ministry of Trade, Industry and Energy (MOTIE) held the “4th New Industry Public-private Partnerships Conference” at Korea Chamber of Commerce and Industry in Sogong-dong, Seoul, on December 21, and announced the “4th Industrial Revolution; New Industry Creation Policy Projects.”

The council selected 12 new industries as the nation’s future growth engines – electric and autonomous vehicle, smart vessel, IoT home appliances, robot, bio health, aviation and drone, premium consumer goods, new industrial energy, high tech materials, augmented reality (AV) and virtual reality (VR), next-generation display and next-generation semiconductor.

In order to secure original technologies in the 12 new industries, public and private sectors have decided to jointly invest 7 trillion won (US$5.86 billion) in R&D of the sectors in the next five years. They also set up 12 goals to accomplish by 2025. The goals include the export of 350,000 electric and autonomous vehicles, expansion of share of eco-friendly ships, including LNG-powered ship,  in the smart vessel sector, US$20 billion (23.91 trillion won) exports of home appliances combining the IoT, US$20 billion (23.91 trillion won) exports of new renewable energy and expansion of advanced metering infrastructure (AMI) devices to 22 million by 2020, creation of 100 AR and VR companies with more than 100 billion won (US$83.65 million) in sales, conversion of major products in the next-generation display sector through 75 percent of sales ratio in organic light-emitting diode (OLED).

To this end, public and private sectors will drastically improve regulations and establish performance-centered intensive support systems. They will expand existing entry regulations and negative screening methods to the 12 new industries, come up with guidelines for sectors with inadequate systems, such as robot and VR, and develop preemptive certification systems. They will also adopt R&D researcher history management systems and foster 30,000 creative experts in the 12 new industries in the next five years as well as provide various benefits to expand conversion platforms and carry out big data establishment and utilization pilot projects.

The MOTIE expects that the export ratio of new industries will grow from 6.6 percent in 2015 to 13.2 percent in 2025 through the latest measure. Meanwhile, domestic companies plan to make a 80 trillion won (US$66.92 billion) investment in the 12 new industries by 2018.

 

 

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