Post-Corona, Revitalizing Local Economy Through R&D

Minister Choi Ki-young of the Ministry of Science and ICT is speaking at a briefing on the results of the 3rd meeting of the Pan-Government Support Group for COVID-19 Therapeutics and Vaccine Development, held on the 3rd at the Government Seoul Office in Jongno-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Hwang Junho] To alleviate the economic impact on local regions caused by the novel coronavirus infection (COVID-19), the government is establishing a fund worth 19 billion KRW. Additionally, it will support local companies in utilizing domestic and international distribution platform networks, select innovative products for public procurement, and operate a fast-track system that exempts technology evaluations, thereby boosting local economic vitality.

On the 5th, the Ministry of Science and ICT announced the "COVID-19 Response Science and Technology-Based Local Economic Vitality Enhancement Plan" to address the difficulties in local economies and the contraction of research and development caused by the spread of COVID-19 by consolidating science, technology, and ICT capabilities.

This plan was prepared to create vitality in local economies by utilizing science and technology infrastructure under the jurisdiction of the Ministry of Science and ICT. The plan is divided into immediate execution tasks to support companies in the short term and post-COVID response tasks to build innovative capabilities in the long term.

First, the government will recommend research institute companies for the Industrial Bank of Korea’s venture investment product (20 billion KRW) and provide them with priority opportunities for review. Furthermore, by September, a new fund worth 19 billion KRW will be established to support companies located in Daegu and Gyeongbuk that have suffered severe damage due to COVID-19. Additionally, the "Innovative Product Designation System," which evaluates the innovativeness of small and medium-sized enterprise products and links them to public procurement, and a "Fast-Track" system that exempts technology evaluations when early-stage research institute companies located in research special zones register with the Public Procurement Service’s Venture Nara will be operated.

To enhance the innovative capabilities of local economies, projects to develop research and development special zones as hubs for local economic revitalization will be carried out. A project will begin to solve local issues in research special zones together with local small and medium-sized enterprises, and a qualitative growth strategy for 957 local research institute companies will be established. Subsequently, a technology commercialization collaboration platform (R&D Valley) will be created, and small but strong special zones centered on core technology institutions will be additionally designated.

Moreover, the government will integrate and promote the existing "Local Demand Customized R&D Support Project (Science and Technology Projects Opening the Future)," form consortia with industry, academia, research institutes, and funds to build a "Local Innovation BIG Leading Model," and implement projects such as private investment-type R&D, R&D vouchers, and local resident participation R&D.

Minister Choi Ki-young of the Ministry of Science and ICT will embark on a "Local Relay Field Communication" to achieve results through this local economic vitality enhancement plan.

On the same day, Minister Choi visited Daegu Gyeongbuk Institute of Science and Technology and stated, "In these difficult times due to COVID-19, we will do our utmost to overcome the local crisis through science, technology, and ICT, turning this crisis into an opportunity for new growth and development by fully mobilizing science and technology innovation resources to enhance local economic vitality and strengthen competitiveness."

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