The future of Korea is currently unclear with decreasing birth rate, education that stifles creativity, slow growth in core industry sectors, increasing youth unemployment and income disparity. For Korea to maintain and develop its global ranking economic status will require an innovative change. The current government acknowledged the situation and plans for an “Innovative Growth” which will change and develop the structure of Korea.
Achieving innovative growth requires new technology which can change industries as well as daily lives. Korea has become 10th largest economy (by GDP) worldwide with backbone industries such as Telecom, Display, Automobiles, Semiconductors, but the growth rates of these industries are declining and the need for new industries is emerging.
To pursue innovative growth the MSIT (Ministry of Science and ICT) introduced the 13th Industrial engines which will shape the new economy in Korea. The 13 engines are divided into 4 sections.
For the 13 Industrial Growth Engines, the government is providing specific support to each sector and creating an environment which can lead to the new 4th industrial revolution. The plan is to encourage technology development by tax reductions/benefits and to create an ecosystem with regulations that do not stifle development but aid the process. Financially the government invested KRW 1.3 trillion in 2018 and has planned a total of KRW 9 trillion until 2022. Another accomplishment the government is preparing for the future is targeting and supporting each industry related education which would also solve unemployment issues.
As the Korean government is developing technology in these new sectors it would be interesting to understand the current environment in these sectors. We will address each of the 13 Industry Growth Engines by sector in upcoming posts.