Future Growth Engines
The Moon Jae-in administration will increase the number of electric cars and hydrogen powered cars to 350,000 and 15,000, respectively, by 2022. It will also focus on promoting new industries of the future that can create high added value, such as semiconductor, augmented reality (AR) and virtual reality (VR) and Internet of Things (IoT) home appliances as well as future cars like electric cars and autonomous cars.
The State Affairs Planning and Advisory Committee announced the Moon Jae-in administration’s five-year plan on state governance on July 19. The government will promote new industries of the future by converging information communication technology (ICT) and services based on the competitiveness in manufacturing. It plans to create new growth engines focusing on eco-friendly and smart cars, high tech industries, pharmaceutical and bio sectors, cooperative automated driving technologies, drone industries and standards and certifications. It will seek to adopt policies to promote the related industries, secure original core technologies in the new industries and dominate the global market in advance at the same time through cooperation between four ministries – the Ministry of Trade, Industry and Energy (MOTIE), Ministry of Science, ICT & Future Planning (MSIP), Ministry of Land, Infrastructure and Transport (MOLIT) and Ministry of Health and Welfare (MHW).
First, the government will expand the supply of electric cars and hydrogen powered cars, develop smart cars and promote the self-driving car industry including the establishment of car and ICT convergence platforms. During President Moon’s five-year presidency, it will increase the number of electric cars and hydrogen powered cars to 350,000 and 15,000 by 2022. The figures grew by 100,000 units of electric cars and 5,000 units of hydrogen powered cars in two years compared to the previous administration’s plan to expand the supply of electric cars to 250,000 and hydrogen powered cars to 10,000 by 2020. The Moon Jae-in administration will also commercialize semi-autonomous cars early in 2020 by establishing driverless car test bed and infrastructure, cooperative automated driving connected services and smart roads.
In order to promote the high tech industry, the government will develop cutting-edge new materials and components which are needed for the fourth industrial revolution, including semiconductor, display and carbon industries, and support R&D and establishment of demonstration and infrastructure to promote the advanced technology industry, such as intelligent robots, 3D printing, AR and VR, IoT home appliances, smart ships, nano and bio technologies and aerospace. The rate of increase in electric vehicle exports reached 90.9 percent in the first half of this year. Aerospace also showed a 45.7 percent increase in exports, next-generation display 25.6 percent, next-generation semiconductor 18.4 percent, advanced new materials 12.3 percent and bio health 6.1 percent. Accordingly, the government thinks that the high tech industry has a bright future.
In addition, it will set up the growth ecosystem for pharmaceutical, bio and medical devices, including micro medical robots, by developing core pharmaceutical and bio related technologies, fostering experts and supporting commercialization and global expansion. The government will also come up with the drone industry support roadmap this year and focus on promoting the industry by improving systems, like deregulation, and building infrastructure. When there are no standards for relevant business, it will introduce a quick standard system, which quickly establish standards for new technologies, putting through standard and certification improvements for new industries of the future.