[Ministry of Science and ICT Report] 30 Trillion Won Investment Over 3 Years in 5G Convergence

30 Trillion KRW Public-Private Investment in 5G Convergence Over Next 3 Years
This Year Marks the 'First Year of AI Leadership' with 10 Trillion KRW Infusion into Data Industry

[Asia Economy Reporter Koo Chae-eun] The government will provide a decisive investment of 30 trillion won in 5G over the next three years. This year is designated as the inaugural year of becoming the 'No.1 Artificial Intelligence (AI) Nation,' with a 10 trillion won injection into the data industry, the raw material of AI.

On the 16th, the Ministry of Science and ICT (MSIT) announced the '2020 Work Plan' based on these details. Minister Choi Ki-young of MSIT stated, "Considering the private investment in 5G so far, an additional 30 trillion won investment is deemed sufficient," adding, "Most of the investment is expected to come from the private sector, and we will actively support AI and 5G infrastructure."

MSIT set a goal to invest 30 trillion won in public-private joint efforts to develop 5G convergence services by 2022. They will empower the development of convergence technologies so that industries such as AI, Internet of Things (IoT), big data, autonomous driving, and healthcare can advance with the wings of 5G. To encourage companies to actively invest in 5G, the tax credit for network investment will be increased from the existing 1% to 2%. The registration license tax for 5G base stations will be eased, and frequency usage fees will be integrated to promote 5G infrastructure construction.

To realize a strong AI nation, about 1,000 AI and software specialists will be trained. While expanding the data industry, which is the foundation of the AI industry, to 10 trillion won, a 300 billion won AI-exclusive fund will be established to support the growth of small and medium-sized venture AI companies. A total of 1.96 trillion won will be invested in technology development in the next-generation intelligent semiconductor sector, a core AI technology. The plan is to overcome the economic downturn caused by global uncertainties and lead the Fourth Industrial Revolution era by making AI the new growth engine and undertaking company-wide investments.

Meanwhile, MSIT will be the first ministry among 18 ministries to report to the president. This is analyzed as showing President Moon's determination and priority in national governance to realize an 'AI powerhouse.' Minister Choi Ki-young said about being the 'first reporting ministry,' "It shows the current administration's strong will for innovative growth," adding, "We will focus on promoting strategies for becoming the No.1 AI nation, a digital media powerhouse, and a science and technology powerhouse, leading innovative growth."

This content was produced with the assistance of AI translation services.