"Creating Fail-Proof Policies"… Planning and Budget Office to Pilot 'Sustainable Innovation Lab'

Pilot Launch of Innovation Lab at First Session of 7th Mid- to Long-Term Strategy Committee
Blocking Budget Waste at the Source Through Randomized Controlled Trials (RCT)

The Planning and Budget Office held its first full session of the Mid- to Long-Term Strategy Committee since its establishment and announced its intention to develop future strategies that the younger generation can tangibly feel. In particular, the office plans to pilot the introduction of a Sustainable Innovation Lab, which will scientifically pre-validate policy effectiveness and promote precise, data-driven policy design.

Planning and Budget Office signboard. Photo by Yonhap News Agency.

On March 4, the Planning and Budget Office announced that it will introduce the Sustainable Innovation Lab to scientifically support the development of the nation's mid- to long-term development strategy. The Innovation Lab will use randomized controlled trial (RCT) methodologies to rigorously assess the effectiveness of policy tasks in advance.

Similar to how the state of Oregon in the United States analyzed the impact of health insurance expansion through random allocation prior to implementation, the Korean government also aims to enhance policy design capabilities and accumulate relevant data to ensure effectiveness. The Planning and Budget Office plans to publicly solicit and select a general operating institution for the Innovation Lab within the first half of the year.

Led by Chairman Oh-Hyun Kwon (former Chairman of Samsung Electronics), the 7th Mid- to Long-Term Strategy Committee has set the top priority of creating policies that the younger generation can truly experience. Chairman Kwon emphasized that measures to improve the corporate investment environment and enhance growth potential are key solutions not only for the economy but also for social issues such as youth employment.

The committee agreed on the need to rationalize regulations and strengthen labor market flexibility to establish an agile government operating system that responds to the changing economic environment. They also concurred on the importance of transparent leadership for public-private cooperation and conflict resolution.

The Planning and Budget Office has decided to actively incorporate the committee's discussions—addressing structural challenges such as polarization, demographic changes, and the climate crisis that threaten growth potential—into the nation's mid- to long-term development strategy. In particular, the office plans not only to focus on planning but also to establish measures linking strategy to fiscal resources, ensuring tangible outcomes are achieved.

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