Korean Gov’t to Invest 5 Tril. Won in Innovation-based Growth Industries

The government has decided to invest 5 trillion won next year along to lay the foundation for the promotion of innovation-based high-growth future industries.

The data economy (data, blockchains and the sharing economy), artificial intelligence (AI), and the hydrogen economy have been chosen as the three strategic investment sectors that would serve as the platform for the promotion of innovation-based future growth industries.

The government will focus on eight leading projects that will accelerate innovation and growth. It added bio and healthcare to the eight projects. The government also plans to increase the number of core talent that will drive the Fourth Industrial Revolution to 10,000 by nurturing 2,000 people a year over the next five years. They will take the lead in the platform economy and leading projects.

On August 13, the government held a meeting of ministers related to innovation and growth presided with by Kim Dong-yeon, deputy prime minister and minister of strategy and finance. In the meeting, the government announced Innovation and Growth Strategy to invest 1.5 trillion won in three strategic investment sectors and nurturing innovative talent and 3.5 trillion won in the eight leading projects next year.

Regarding the revitalization of the data economy, the government will build big data networks by investing 80 billion won next year. By next year, the government will set up the top 10 big data platforms such as transportation, energy, environment, telecommunication and finance to accumulate and process data by sector and supply them according to market demand. Small and medium-sized venture companies will be given data vouchers worth tens of billions of won and be able to acquire or process big data free of charge.

In addition, the government plans to conduct research and development (R&D) activities on the revitalization of big data by investing 80 billion won. The hydrogen economy was also selected as a strategic investment target for energy security and future industry development. The government plans to introduce a hydrogen bus next year and secure the original technology for hydrogen production by 2023.

As for the directions of investment in Innovation and Growth Strategy, hyper-connected intelligence was excluded from and bio and health were included in the eight leading projects so the eight projects will focus on smart factories, smart farms, fintech, the new energy industry, smart cities, drones, future cars and bio and health.

The government has also decided to spend 350 billion won on building a data utilization base for supporting R&D activities on bio convergence technology and upgrading customized medical care. This amount is an increase of 78.2 billion won from 271.8 billion won in the previous year.