4+1 Strategy Framework for Innovation Growthincrease the public’s feeling
Ministry of Strategy and Finance
Smart start-up of main industries and venture start-ups are promoted…Korona19 minimizes risk by mobilizing all policy capabilities
Ministry of Strategy and Finance 2020.02.17
The government will focus on innovative growth with a 4+1 strategy to drive economic growth and upgrade its potential growth path this year.
The goal is to strategically nurture new industries such as bio to find “post-conductor” and expand budget and financial support to help more innovative unicorn companies come out, thereby increasing public sentiment and visualizing their performance.
In addition, the government will minimize risks by mobilizing all of its policy capabilities amid concerns that the spread of Korona19 will serve as a negative factor for the global economy and the Korean
The Ministry of Strategy and Finance on July 17, Moon Jae-in of such information to the president reported its work plan for 2020.
Moon Jae-in is gijaebu government economic policies of the three pillars economic outcomes have been steadily increasing economic growth, engagement, innovation, growth to innovation, growth this year is significant.Sensory Level of take-off and the people decided to focus on improvement.
Accordingly, innovation growth this year will be focused on ‘4+1 strategic framework’ that adds ▲ institutions and infrastructure to ▲ existing industries, markets, ▲ new industries, new markets, ▲ innovative technologies, R&D innovations, ▲ innovators, and innovative finance.
The existing industry creates new added value and jobs through smartening of the main industry and upgrading the service industry.
Major industries will expand Smart Factories (30,000 in 222) and Smart Industrial Park (10 in 2022) and stabilize the supply of Japanese export-regulated items in materials, parts and equipment industries.
The service industry will improve key regulations on accommodation sharing and forest recreation tourism and utilize “3K” such as K-pop, K-food and K-beauty to boost the tourism industry.
The new industry will announce its plan to boost the data economy in March to open the post-conductor era with aggressive and leading investments. The company will also push for three major packages to promote investment in fifth-generation 5G and a cumulative 430,000 electric vehicles in 2022. The company will achieve 20 unicorn companies early by 2022 and create a new scale-up fund worth 3.2 trillion won.
To secure world-leading technology, the company will increase its strategic national R&D investment from 20.5 trillion won to 24.2 trillion won. For high-risk and innovation R&D, it will also introduce “Korean version of DARPA” such as the Defense Research Planning Agency under the U.S. Defense Department and “G-First Project” to develop the world’s first and highest technology.
The government will also faithfully support the private sector’s challenge by training innovative talent and strengthening the innovative financial system. Starting in February, the company will run “42 Seoul” to train the world’s top-notch software talent, while increasing the number of AI graduate schools. The government will also expand its policy financing in innovative growth to 45.6 trillion won from 39.6 trillion won last year and improve its credit assessment.
To improve the system and infrastructure, the government will also establish a “one-step model,” a social compromise mechanism, improve regulations on zero-base in the top 10 industrial sectors in five areas, strengthen the role of an innovative growth driver in public procurement and pre-emptive legal adjustment.
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In order to lead and support innovative growth, the Ministry of Public Information and Communication will launch five major TFs, including service industry, bio industry, 10 major regulations, data economy, and structural innovation. They will use innovative growth strategy meetings and green-room meetings to iron out differences between ministries and implement policies that are fast-paced by revitalizing cooperative systems between ministries.
Under the innovative growth budget, the government will provide all-out support using policy tools such as budget, tax system, procurement and public organizations, including 15.8 trillion won, up 49 percent from the previous year.
In addition, the government plans to push for 100 trillion won worth of investment projects in the private, private and public sectors and to boost domestic consumption by expanding tax support for consumption and tourism.
The 100 trillion won investment project will consist of 25 trillion won in private corporate investment, 15 trillion won in private-sector projects and 60 trillion won in investment in public institutions.
To boost domestic demand, the government will also consider designating a day during the Korea Sale Festa period to refund VAT on goods purchased on that day. In addition, it will expand duty-free shops in the country to major airports and allow tobacco sales in duty-free shops.
In addition, 70 percent of the individual consumption tax will be deducted within the 1 million won limit when new cars are replaced with old cars that are more than 10 years old by June.
Measures will also be taken to boost domestic travel and attract foreign tourists. The government will finalize a plan to apply a 30 percent income tax deduction to credit card and other usage amounts during the first half of the year. To enhance convenience for foreign shopping, the immediate refund of after-taxes will also be expanded. Currently, taxes on 300,000 won per case and 1 million won in total purchases have been reduced without a separate refund process, but starting this year, 500,000 won per case and up to 2 million won in total purchases can be reimbursed.
It will designate five places – Busan, Gangneung, Jeonju, Mokpo and Andong – as international and regional tourist hub cities, and expand two K-Pop concert halls to create a tourism boom using the Korean Wave by holding large-scale K-Pop concerts.
In addition, the government will strengthen its policy response efforts to prepare for future changes in the social structure such as population, although both employment and distribution indicators have improved due to active policy responses.
To this end, the government will provide jobs tailored to the characteristics of people in their 40s based on survey of status and on-site communication, support job creation through employment-friendly financial management, and expand the income base of vulnerable people by strengthening the social safety net.
Among them, the “job measures for those in their 40s” will include customized support measures for those in their 40s, including support for vocational training, education and living expenses, support for employment, support for startups, and support for industries and regions.
To actively respond to changes in the tax environment and expand financial capacity for the future, the Ministry of Information and Communication will come up with a comprehensive plan to overhaul the financial tax system, including adjustment of stock transfer income and stock exchange taxes, in June.
In July, the government will announce measures to levy income taxes on the transaction income of virtual currencies (such as bitcoin) of individuals currently tax-free.
Following the report, the ministry also reported on the impact and response direction of the Korean economy under Korona19.
Korona19 is feared to serve as an unexpected risk factor for the global economy such as China and the Korean economy, and difficulties are being felt on the ground, such as a decrease in tourists visiting Korea and sluggish lodging and food businesses.
Accordingly, the government plans to quickly implement a total of 20.8 billion won in quarantine budget to overcome the crisis, and actively provide provision for purposes when additional demands are made. To minimize the impact of the economy, the government will also push for financial support such as eliminating certain market jitters over masks, supporting tax administration and customs clearance, and providing fresh funds.
The government has been continuously preparing measures for each industry, including strengthening on-site communication, along with measures to supply parts for automobiles and support small and medium-sized enterprises and small businesses.
Through thorough monitoring of financial market and real-life sectors, export support and measures to stimulate domestic demand, the government will also focus its policy capacity on building momentum for the economic recovery.
The government has been continuously preparing measures for each industry, including strengthening on-site communication, along with measures to supply parts for automobiles and support small and medium-sized enterprises and small businesses.
Through thorough monitoring of financial market and real-life sectors, export support and measures to stimulate domestic demand, the government will also focus its policy capacity on building momentum for the economic recovery.
Meanwhile, the report was conducted in the form of a town hall meeting in which the president, economic officials and experts from different fields sat down and discussed knee-to- knee-to- knee with each other to overcome the psychological economic contraction caused by the Korona19.
Inquiry: Strategy and Finance Minister (044-215-2512)
source: Ministry of Culture, Sports and Tourism. Republic of Korea. http://www.korea.kr
