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Deputy Prime Minister and Minister of Strategy and Finance Kim Dong-yeon (second from left) gives a speech during the third Innovative Growth Ministerial Meeting at Seoul Square in Jung-gu, Seoul, on Aug. 2. (Ministry of Strategy and Finance)

By Xu Aiying and Hahm Hee-eun

The government has announced its plans to use public institutions to invest more than KRW 30 trillion into eight leading industries between this year and 2022.

Deputy Prime Minister and Minister of Strategy and Finance Kim Dong-yeon said during the third Innovative Growth Ministerial Meeting in Seoul on Aug. 22 that, “The government will play a key role in accelerating innovative growth by investing through public institutions, and thus create the initial demand in these leading industries.”

At the meeting, lively discussions were held concerning innovative growth, including plans for the public institutions to make their investments, about new economic relationships that make use of modern technology, like the internet and big data, and systems of managing venture companies.

The eight leading industries, into which the government plans to invest more than KRW 30 trillion by 2022 are: super-intelligence, smart factories, smart farms, fintech, new energy industries, smart cities, drones and autonomous vehicles. In order to establish physical and human infrastructure in these industries, the government decided to expand opportunities for private business, and to encourage and help overseas expansion. Constructing experimental cities for autonomous cars and data sharing centers are two examples of how the government support will be realized.

Minister Kim said, “A so-called ‘platform economy,’ that uses new technologies, is commonly required in all economic and industrial sectors, just like train platforms that we step up and down from to take a ride. This is getting more active in other countries, but due to entry restrictions, there were some cases of difficulties here in Korea. The government acknowledges that the system needs improvements, and therefore the proper measures will be prepared in the near future, based on our status meeting with the president.”

The government has also decided to drastically reduce entry regulations for venture capital companies so that large corporations can actively participate in mergers and acquisitions. Not only venture companies, but also large corporations and mid-sized companies will now have the opportunity to increase their incentives.

xuaiy@korea.kr