Improving Public Perception Through 'Innovative Growth' Achievements... "Mobilizing All Policy Measures"

2020 Ministry of Economy and Finance Work Report
Promoting the 4+1 Innovation Growth Strategy... Full Support for Budget and Taxation

[Asia Economy Reporter Jang Sehee] The Ministry of Economy and Finance announced that this year it will achieve tangible results in innovation growth sectors that the public can feel by preemptively securing new industries and new markets, and through bold regulatory reforms and infrastructure support.

On the 16th, the Ministry of Economy and Finance held its 2020 work report at the Blue House State Guest House, containing these details. This year, to overcome the psychological economic contraction caused by COVID-19 and to promote economic revitalization, a town hall meeting was held where President Moon Jae-in, ministers of economic-related departments, and economic experts from various fields sat face-to-face and communicated openly.

At this meeting, the Ministry emphasized that it will promote innovation growth centered on the 4+1 strategic framework: the second venture boom, manufacturing and service innovation, future growth engines, innovative talent, and regulatory innovation. The Ministry stated, "Innovation growth has accelerated and spread private innovation, steadily increasing economic outcomes," adding, "Building on this foundation, this year we will focus on a breakthrough leap and a clear improvement in public perception." It further emphasized, "We are pushing forward policies with speed through interdepartmental coordination and collaboration systems using innovation growth strategy meetings and green room meetings."

First, the plan is to strategically nurture new industries. A plan to revitalize the data economy will be established by next month, and follow-up work related to the amendment of the three data laws will be carried out without delay. Additionally, the Ministry plans to promote the disclosure and use of public data, build transaction infrastructure such as data exchanges, and encourage the fusion of heterogeneous data.

Furthermore, the bio-industry will be fostered as the next-generation growth industry following semiconductors. The Ministry identified ten core tasks for the bio-industry, including ▲a strategy for building big data on life research resources ▲innovation strategies for bio research and development (R&D) ▲a master plan for bio-industry workforce development ▲and a comprehensive innovation strategy for K-Beauty.

Efforts will also be made to strengthen the competitiveness of key industries and service industries. The number of smart factories will be significantly expanded to 30,000 by 2022, and smart industrial complexes will increase from 2 to 10. Strategic investments in DNA (Data, Network, AI) and the Big 3 (system semiconductors, future cars, bio-health) will be reinforced.

◆Accelerating Innovative Talent Development and Strengthening the Innovation Finance System= Alongside this, the Ministry will support 24.2 trillion won in national R&D to secure technological capabilities. AI graduate schools will be increased to cultivate innovative talent, and policy finance for innovation growth sectors will be expanded from the existing 39.6 trillion won to 45.6 trillion won.

Bold regulatory innovation will also be pursued. The Ministry plans to select ten key regulatory industries across five areas (new industries, bio-health, common industries, manufacturing innovation, and service industries) and review them from the ground up.

In the first quarter, a 'One Step Model' plan will be announced to reform regulations in new industry areas, resolve conflicts, and secure social consensus. To reach agreements, tailored use of policy menus such as regulatory sandboxes, profit-sharing agreements, and cooperative formation will also be considered.

Additionally, the Ministry plans to expand customized job support for each life cycle and vulnerable groups, and to foster the care economy by increasing social service jobs in response to rising welfare demands.

◆COVID-19 Causes Declines in Exports and Tourists... Preparing Momentum for Economic Recovery= The government diagnosed that COVID-19 acts as an unexpected risk factor to the global economy, including China, and to the Korean economy. In response, it mentioned the execution of quarantine budgets and the use of contingency funds. The Ministry stated, "Although the situation is difficult to predict, difficulties such as a decrease in inbound tourists and sluggish lodging and food service industries are being detected as indicators on the ground," adding, "We will promptly execute quarantine budgets and utilize contingency funds if necessary."

However, Kim Yong-beom, Vice Minister of the Ministry of Economy and Finance, stated that they are not considering an additional supplementary budget (supplementary budget) for this. Vice Minister Kim explained, "It is currently February, and contingency funds have been sufficiently secured," adding, "We will actively respond through support from policy finance institutions and partial changes in fund project plans." He further added, "Since there is sufficient capacity, we are not considering a supplementary budget at this time."

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