The Ministry of Trade, Industry and Energy (MOTIE) announced yesterday an industry development strategy that aims to foster a high-quality labor force.

The Korean economy has succeeded in growing dramatically in a short period of time based on mass production, with injection of labor and capital. However, it appears to have come to a deadlock.

Advanced countries usually reached gross national income (GNI) of USD 30,000 within 5 years of achieving a GNI of USD 20,000. However, Korea has remained at a GNI level of USD 20,000 since 2007.

In particular, advanced countries are enjoying monopolistic advantages in the fields of engineering and system semiconductors due to high entry barriers.

Although Korean shipbuilders are receiving about 31 percent of total global marine plant orders (USD 21.9 billion in 2012), more than half of the created added value spills over to other countries due to the insufficient design capabilities of Korean companies.

That is why the Korean government has established an implementation plan for a creative economy that aims to nurture a high-quality labor force, add high-added value to all industries based on spillover effects and build a creative environment.

MOTIE will start by promoting a short-term upgrade strategy that promotes mergers and acquisitions (M&A) and attracts outstanding talents from overseas.

To facilitate a global M&A fund (KRW 100 billion), which is planned for the second half of the year, MOTIE will review the introduction of an insurance product that protects a part of investment in M&As.

The Korea Trade-Investment Promotion Agency (KOTRA)’s Contact Korea project, which aims to attract overseas talent, will build a database of about 3,000 skilled workers by 2014 and provide it to companies.

To attract a foreign engineering design center, the expansion of cash support from the current 30 percent to 40 percent will also be reviewed.

In the second half of the year, five Korea Business Centers, including those in London, Frankfurt, Houston and Silicon Valley, will be named as core agencies for a skilled workforce to support Korean talents entering advanced companies and research institutes.

MOTIE plans to foster about 1,500 highly qualified workers a year in the field of engineering, marine plants, system semiconductors and embedded software.

About 20 engineering design research centers will be established in outstanding universities between 2014 and 2017. More universities specializing in marine plants and industry convergence will also be built.

Among companies in the fields of engineering, engineering design, embedded software and system semiconductors, those that meet a stipulated requirement will be designated as specialized companies and provided with support for technology development, market penetration and more.

By 2017, about 300 specialized companies will be designated based on their technological innovation, finance capability and growth potential.

These companies can score points when they participate in public research and development projects and can also take part in the plant designs of public agencies’ overseas resource development projects.

MOTIE plans to promote the industrial development strategy by reinforcing engineering capability in the fields of machinery, equipment, marine plants and petrochemical industries.

MOTIE will reinforce the planning and design capabilities of small- and medium-sized companies by building a design simulation platform. It will also build a Korean marine plant model by securing core design technology.

The capabilities related to embedded software and system conductors of automobile and aviation industries will be reinforced, and the competitiveness of traditional manufacturing and energy industries will be built through convergence with information technology.

MOTIE will also focus on building a creative environment by introducing awards for researchers who have found solutions to technical challenges.

A technology innovation capability evaluation system, which assesses a company’s overall innovation capability and technology fund facilitation measures, will be developed by the end of this year. MOTIE will also expand its low-interest loans (KRW 30 billion annually) from banks dedicated to commercialization and R&D budget management banks (KRW 2 trillion annually).

A MOTIE official noted that the ministry will focus on strategy implementation, progress reviews and future plans, adding that the strategy will be continuously complemented and improved with the help of a creative industry advisory group.


Source Text

Source: Newsis (July 24, 2013)

** This article was translated from the Korean.