ID :
40506
Wed, 01/14/2009 - 10:39
Auther :
Shortlink :
https://oananews.org//node/40506
The shortlink copeid
News Focus) S. Korea picks 17 future growth businesses to buoy growth
(By Lee Joon-seung
SEOUL, Jan. 13 (Yonhap) -- South Korea is seeking to overcome its current
economic impasse and achieve sustainable economic growth by developing 17
future-oriented growth businesses, the government said Tuesday.
The plan approved at the National Science and Technology Council chaired by
President Lee Myung-bak is expected to help the country change the way it does
business from following in the footsteps of others to becoming a global leader in
key, cutting-edge sectors.
"South Korea must be a step ahead of other countries that are trying to cope with
the current economic crisis by looking ahead and finding future growth engines,"
Lee said at the gathering. He stressed the country is at an important crossroad
in development, and that it is critical for all parties to make investments that
can lead to future growth.
The Prime Minister's Office (PMO), which will follow up overseas, said the 17
businesses were picked because of their future growth potential, compatibility
with existing industries and ability to promote eco-friendly growth. It said
development of the businesses will take place in the next three years along with
work on the "Green New Deal" projects announced last week.
The government is expected to inject more than 13.6 trillion won (US$9.8 billion)
to support research and development (R&D) and industrial infrastructure building
with the private sector and play a leading role in investment and market
creation.
"If development of new growth businesses proceeds on schedule, the total increase
in value-added production is estimated to reach 694 trillion won in 2018 from 222
trillion won tallied for last year," said Cho Won-dong, head of the PMO's
government management office.
The number of new jobs could go up by 3.52 million and exports could be bolstered
by US$920 billion, he claimed.
The Ministry of Knowledge Economy said it will inject 7.3 trillion won from this
year until 2013 into 10 businesses in three core industries.
It said besides state funds, efforts are to be made to attract 90.5 trillion won
worth of investment from the private sector, with the government to help create a
250 billion won "new growth industry fund" with the business community this year.
The fund, which will be expanded to 3 trillion won by 2013, is to be used to
support various high-risk research and development endeavors that companies may
not otherwise engage in, and to help companies sell high-tech goods by creating a
market.
For 2009, the ministry in charge of the country's industrial policies said it
will spend 1.3 trillion won to enhance the country's capability in the green
technology sector, high-tech convergence and value-added services.
Funds to advance green technology will go into the development of reusable energy
technologies, energy efficient automobiles, advanced applications of light
emitting diodes and reducing greenhouse gas emissions.
In high-tech industrial convergence, efforts will center on merging the broadcast
and telecommunications sectors and promoting next-generation information
technology, robotics applications, new industrial materials and biotech-medicare
advances.
The plan also calls for funds and resources to go into the contents-software area
expand the country's clout in value-added services.
Besides these 10 businesses, seven other prospective growth engines recommended
by other ministries are to be developed that could contribute to more jobs and
improve people's quality of life.
Policymakers at the meeting said technologies related to water treatment,
building eco-friendly cities, and pushing for advances in financing, food
industry, healthcare, education and MICE industries would all have a positive
impact on the market.
MICE refers to the meetings, incentive travel, conventions and exhibition
industry that is fast becoming a new source of growth in the service sector.
R&D support is also to receive full backing in the coming years. The Ministry of
Education, Science and Technology said it will increase research funds for green
technology development areas from 900 billion won in 2007 to over 6.3 trillion
won between 2009 and 2012.
Despite the lofty plans, critics have said that the latest policy announcements
are a repeat of past policies, with the exact size of state funds to be injected
to be announced in April.
"The total size of the state contribution is not altogether precise, since there
may be some overlap of R&D spending in eco-friendly energy areas," an official at
the science ministry, who declined to be identified, said.
Others pointed out that of the 36 projects included in the Green New Deal
project, 15 are also part of the latest growth engine development endeavor.
"This latest plan lacks any real detail and substance needed to get the business
community to take necessary steps," said Ko Kye-hyun, policy director at the
Citizens' Coalition for Economic Justice. He said that the general impression was
that the government does not seem to have a coherent plan at present and that
ministries are rehashing existing or past policies.
yonngong@yna.co.kr
(END)
SEOUL, Jan. 13 (Yonhap) -- South Korea is seeking to overcome its current
economic impasse and achieve sustainable economic growth by developing 17
future-oriented growth businesses, the government said Tuesday.
The plan approved at the National Science and Technology Council chaired by
President Lee Myung-bak is expected to help the country change the way it does
business from following in the footsteps of others to becoming a global leader in
key, cutting-edge sectors.
"South Korea must be a step ahead of other countries that are trying to cope with
the current economic crisis by looking ahead and finding future growth engines,"
Lee said at the gathering. He stressed the country is at an important crossroad
in development, and that it is critical for all parties to make investments that
can lead to future growth.
The Prime Minister's Office (PMO), which will follow up overseas, said the 17
businesses were picked because of their future growth potential, compatibility
with existing industries and ability to promote eco-friendly growth. It said
development of the businesses will take place in the next three years along with
work on the "Green New Deal" projects announced last week.
The government is expected to inject more than 13.6 trillion won (US$9.8 billion)
to support research and development (R&D) and industrial infrastructure building
with the private sector and play a leading role in investment and market
creation.
"If development of new growth businesses proceeds on schedule, the total increase
in value-added production is estimated to reach 694 trillion won in 2018 from 222
trillion won tallied for last year," said Cho Won-dong, head of the PMO's
government management office.
The number of new jobs could go up by 3.52 million and exports could be bolstered
by US$920 billion, he claimed.
The Ministry of Knowledge Economy said it will inject 7.3 trillion won from this
year until 2013 into 10 businesses in three core industries.
It said besides state funds, efforts are to be made to attract 90.5 trillion won
worth of investment from the private sector, with the government to help create a
250 billion won "new growth industry fund" with the business community this year.
The fund, which will be expanded to 3 trillion won by 2013, is to be used to
support various high-risk research and development endeavors that companies may
not otherwise engage in, and to help companies sell high-tech goods by creating a
market.
For 2009, the ministry in charge of the country's industrial policies said it
will spend 1.3 trillion won to enhance the country's capability in the green
technology sector, high-tech convergence and value-added services.
Funds to advance green technology will go into the development of reusable energy
technologies, energy efficient automobiles, advanced applications of light
emitting diodes and reducing greenhouse gas emissions.
In high-tech industrial convergence, efforts will center on merging the broadcast
and telecommunications sectors and promoting next-generation information
technology, robotics applications, new industrial materials and biotech-medicare
advances.
The plan also calls for funds and resources to go into the contents-software area
expand the country's clout in value-added services.
Besides these 10 businesses, seven other prospective growth engines recommended
by other ministries are to be developed that could contribute to more jobs and
improve people's quality of life.
Policymakers at the meeting said technologies related to water treatment,
building eco-friendly cities, and pushing for advances in financing, food
industry, healthcare, education and MICE industries would all have a positive
impact on the market.
MICE refers to the meetings, incentive travel, conventions and exhibition
industry that is fast becoming a new source of growth in the service sector.
R&D support is also to receive full backing in the coming years. The Ministry of
Education, Science and Technology said it will increase research funds for green
technology development areas from 900 billion won in 2007 to over 6.3 trillion
won between 2009 and 2012.
Despite the lofty plans, critics have said that the latest policy announcements
are a repeat of past policies, with the exact size of state funds to be injected
to be announced in April.
"The total size of the state contribution is not altogether precise, since there
may be some overlap of R&D spending in eco-friendly energy areas," an official at
the science ministry, who declined to be identified, said.
Others pointed out that of the 36 projects included in the Green New Deal
project, 15 are also part of the latest growth engine development endeavor.
"This latest plan lacks any real detail and substance needed to get the business
community to take necessary steps," said Ko Kye-hyun, policy director at the
Citizens' Coalition for Economic Justice. He said that the general impression was
that the government does not seem to have a coherent plan at present and that
ministries are rehashing existing or past policies.
yonngong@yna.co.kr
(END)
