‘Growth through Innovation’ Investment Plan
Government to Spend 5 trillion won in 2019
on ‘Growth through Innovation’
The government unveiled on August 13 its ‘growth through innovation’ investment plan for 2019. A total of about 5 trillion won, an increase of 2 trillion won compared with 2018, will be spent on the eight pilot projects[1], as well as on the building of a platform economy, such as a digital platform for big data analytics and transactions, and a hydrogen fuel cell supply chain.
The government will invest a total of 9-10 trillion won in a platform economy over the next five years. Given the impact of a nationwide platform on other industries, in addition to those directly involved, the platform economy will accelerate ‘growth through innovation’.
Four projects to develop a platform economy
The government decided to focus on two platforms, a digital platform for big data analytics and a supply chain for hydrogen fuel cells, and announced four projects, including an education project to develop qualified human capital needed.
- Build a big data platform: The government will focus on promoting big data and AI, developing blockchain technology to ensure data management security and boosting the sharing economy
- Ease data divide: The government will provide fiscal support to encourage small businesses to use big data, and promote the development of digital trade platforms for exporters
- Build a hydrogen fuel cell supply chain which covers from production to storage, transportation and utilization
- Develop an education program to provide as many as 10,000 qualified workforce over the next five years[2]
Investment plan for 2019
- A total of 5 trillion won, an increase of 2 trillion won from the previous year: 3.5 trillion won in the eight pilot projects and 1.5 trillion won in a platform economy
- A total of 0.5 trillion won of investment in the four projects to develop a platform economy, a 371 percent increase from the previous year
Growth through innovation investment, 2018 and 2019
(billion won)
|
|
2018
(A)
|
2019 plan (B)
|
Change
|
|
(B-A)
|
y-o-y, %
|
|
Big data, AI, blockchain, sharing economy
- Develop a big data platform
- Ease digital divide and promote the use of big data analytics
|
579.9
|
1,040.0
|
460.0
|
79
|
|
39.7
|
190.0
|
150.0
|
378
|
|
6.8
|
130.0
|
120.0
|
1,765
|
|
Hydrogen fuel cells
|
42.2
|
110.0
|
70.0
|
166
|
|
37.2
|
100.0
|
60.0
|
161
|
|
Develop qualified workforce
- Education program to grow 10,000 workforce
|
247.9
|
340.0
|
90.0
|
36
|
|
24.0
|
90.0
|
70.0
|
292
|
|
Subtotal for platform economy (C)
|
870
|
1,490.0
|
620
|
71
|
|
Future cars
|
590.7
|
760.0
|
170.0
|
29
|
|
Drone services
|
69.8
|
120.0
|
50.0
|
72
|
|
New energies
|
597.1
|
870.0
|
280.0
|
47
|
|
Healthcare biotechnology
|
271.8
|
350.0
|
80.0
|
29
|
|
Smart factories
|
444.6
|
1,030.0
|
590.0
|
133
|
|
Smart cities
|
76.7
|
130.0
|
50.0
|
65
|
|
Smart farms
|
114.4
|
240.0
|
130.0
|
114
|
|
Fintech
|
3.6
|
10.0
|
6.0
|
167
|
|
Subtotal for 8 pilot projects (D)
|
2,168.6
|
3,520.0
|
1,350.0
|
62
|
|
Total (C+D)
|
3,038.6
|
5,010.0
|
1,970.0
|
65
|
Please refer to the attached pdf
