The author is a freelance journalist and Google News PR specialist. She can be reached at virginia.sagal.media@gmail.com. -- Ed.
The South Korean government, led by liberal President Moon Jae-in, announced in July 2021 a new K-Deal that looks to invest more than 160 trillion won ($138 billion) in digital and green energy sectors. This new deal, which has left many analysts skeptical, seeks to create more than 1,900,000 jobs by 2025, while at the same time stabilizing economic activity halted by the novel coronavirus pandemic.
Although the new deal is a big step towards the investment of digital technology and green initiatives, the South Korean government seeks to stimulate an aging economy and population with modern economic policies. The new K-Deal will drive innovation, equality, and economic development. With an ambitious task ahead, we looked at seven trends that are currently impacting Korean business and economic performance.
The Green New Deal
As part of President Moon Jae-in’s new K-Deal, a large portion of government investment and expenditure will go into developing and advancing green energy initiatives. This plan, a monstrous one at most, looks to build and install solar panels and wind turbines generating more than 42.7 gigawatts of electricity by 2025. Furthermore, there are plans to install more than 220,000 solar panels on public buildings across the nation. This will put many businesses at the frontline of green talks and negotiations with investors.
The Digital New Deal
South Korea is one of the few countries to have first rolled out 5G connection technology, and with an investment of more than 44.8 trillion won ($40 billion), to stimulate tech innovation and create 900,000 new tech jobs - an ambitious task, with smaller tech startups and corporations already seeing major improvements in recent years. In 2021, the Moon Administration expects to spend more than 9.9 trillion won on developing AI and big data development.
Big Data and Artificial Intelligence (AI)
This is nothing new to South Korea, as being dubbed by the country with the fastest internet connection in the world - big data and AI are just getting better and bigger! Companies are seeking new ventures to assist an ailing nation, with digital platforms for businesses and entrepreneurs. More so, data-driven companies are now spreading their influence in the country with new ways of business formation platforms, to assist South Korean entrepreneurs to find alternatives to LegalZoom to file their business formation with local government entities.
Telemedicine and BioMedicine
Telemedicine has rapidly taken off since the start of the pandemic, and the Korean Health Industry Institute is creating opportunities for youthful entrepreneurs to develop key components that can help improve their health care system.
Strategic Political Cooperation
The Moon Administration isn’t stepping away from their political agendas, keeping a well-balanced relationship with both Washington and Moscow. On the surface, it might not look as much, but in reality, we can see that these corporations will affect imports and exports to the nation - directly impacting businesses and major corporations looking to trade with the West and Russia.
ASEAN and NSP
Strengthening political ties with the right players will only offer more lucrative returns in the long run. South Korea is building a lasting relationship with India, and the Association of Southeast Asian Nations backing the New Southern Policy (NSP) initiative. These ties will create free market and trade deals between the nations that are looking to diversify their economic expenditure. More so, the Korean government has launched an official development assistance strategy, to partner with six NSP nations to negotiate a free trade deal in the coming months.
Trans-Pacific Partnership
As one of the largest trade agreements between countries on both sides of the Pacific, including New Zealand, Canada, Brunei, and the United States, among others, with Japan, recently receiving approval to join negotiations - South Korea might throw their hat in the ring as well. This might still take some time, but will strengthen the ties South Korea has with Japan and the U.S., but even more allow the opportunity to negotiate deals with South American nations, and Canada.
Final thoughts
Whether it’s digital or political, the South Korean business ecosystem is largely driven by technological initiatives and political strategy that is slowly placing the country in the center of global trade negotiations. These developments will seek to create a more unified economy, allowing businesses to seek better government support - but also, be the driving force behind a global digital era.