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Achievements in the field of science and ICT on 2nd anniversary of Moon administration (May 13)

- Having laid foundation for 4th Industrial Revolution and built ecosystem of R&D innovation

<Foundation for 4th Industrial Revolution >

Nationwide response plan for 4th Industrial Revolution

World's first launch of commercial mobile 5G network (April 2019)

Formulated and implementing 5G+ Strategy to dominate global market expected to reach 1.16 trillion KRW in 2026

29% expansion of big data market compared to 2017 and foundation for data economy

59% increase in AI businesses compared to 2016 107% increase in AI R&D investment

<Autonomous and responsible STI ecosystem>

Established STI command center and national R&D innovation plan

2019 R&D budget surpasses 20 trillion KRW for first time

R&D PFS improvement to carry out thorough review within 6 months

700th research spin-off established and 51.7% increase in businesses related to R&D compared to 2016

<Expand growth potential of Korean economy>

Double researcher-centric basic research support to 2.5 trillion KRW by 2022

Successful projectile test-launch in Nov. 2018 and satellite development and launch

Generation of outcomes worth 6.4 trillion KRW by enhancing biotechnology and healthcare R&D support

<Reinvigorate entrepreneurial activity through deregulation and support>

Adoption of ICT regulatory sandbox on Jan. 17 and handling of 11 tasks

Lift regulations that can affect daily life such as requirement to keep paper receipts

15.7% increase in new ICT companies and 78% increase in new VC investment in ICT compared to 2016

<Improve quality of life >

Relieve burden of household communications bills amounting to 1.8 trillion KRW per year

Cultivate talent in the field of science and ICT to respond to the 4th Industrial Revolution, specifically 6,500 experts in 2018

1.26 trillion KRW investment in addressing social issues in 2018

The Ministry of Science and ICT (MSIT) announced "Achievements in Science and ICT" on the 2nd anniversary of the Moon administration.

The MSIT has strived to play the role of an integrator for the past two years as the ministry in charge of the Fourth Industrial Revolution response and science and technology innovation, to maximize the innovation capacity of the public and private sectors.

Under the vision of "realizing people-centered Fourth Industrial Revolution," the government established critical response infrastructure based on data, network, and AI (DNA), innovated the national R&D framework, and devised and has been implementing "I-Korea 4.0 Strategy" aiming to improve the quality of life.

The efforts have culminated in the following five major achievements in the field of science and ICT.

1. Foundation for 4th Industrial Revolution

First, the Moon administration laid the foundation for the Fourth Industrial Revolution.

First of all, the Ministry of Science and ICT was launched, which is in charge of the 4th Industrial Revolution response. The government also prepared a response framework, such as establishing the Presidential Committee on the Fourth Industrial Revolution. The government also devised the Response Plan for the Fourth Industrial Revolution in November 2017 to take this transformation as a change to drive growth and job creation.

Korea also rolled out the first commercial 5G network in April, key infrastructure of the Fourth Industrial Revolution, providing super-fast and real-time connectivity. The government established the 5G+ Strategy in order to go beyond being the world’s first but to dominate the new industries powered by 5G in advance, expected to worth 1.16 trillion Korean won in 2026. The goal is to reach 180 trillion Korean won in production, 15% of the global market, 73 billion dollars in exports, employment of 600,000 people by 2026.

The data economy is becoming more vibrant, as data is regarded as crude oil in the era of the Fourth Industrial Revolution. The government announced “the transition to the data economy” last August and made efforts to innovate the whole cycle of data collection, storage, processing, analytics, distribution, and utilization. As a result, the big data market has grown by 29% compared to 2017 and the data usage of companies has been expanding as well. The big data market in Korea grew from around 455 billion Korean won to 584 billion Korean won and Korea’s ability to use data was ranked 56thto31stintheIMDrankingfrom2017to2018.

The government also laid the foundation for becoming an AI powerhouse by building an AI hub that provides data to SMEs and startups for AI learning, establishing three AI graduate schools, and increasing investment in R&D by 107% compared to 2016, all of which culminated in a 59% increase in AI companies.

* AI R&D investment: 130 billion Korean won in 2016 270 billion Korean won in 2018

** Number of AI businesses: 27 in 2016 43 in 2018

The government also preemptively applied blockchain technology to the public sector such as introducing blockchain-based customs service for cross-border shopping. Demonstration of an autonomous vehicle ride hailing service, Dr. Answer’s precision medicine, smart SOC are other examples showing the spread of intelligent and converged services.

*e.g. Ensure clean air in underground area by adopting the intelligent air purifying system in collaboration with KORAIL.

Lastly, the government integrated the information security management system that had been separately managed by the Ministry of Science and ICT and the Ministry of Interior and Safety and the Korea Communications Commission, thereby lifted the burden of certification on businesses as the period for evaluation and certification fees have been cut by 30% and up to 50% respectively.

*Information Security Management System (ISMS): a certification system to evaluate and certify the ISMS status.

**Personal Information Management System (PIMS): a certification system to evaluate and certify the PIMS status.

2. Autonomous and responsible STI ecosystem

Second, the government has built a science, technology, and innovation (STI) ecosystem based on autonomy and responsibility.

The government established the Office of Science and Technology Innovation in charge of government-wide science and technology policy. Also, the Presidential Advisory Council on Science and Technology was launched to carry out the highest-level decision-making. The ministerial meeting of science and technology affairs was re-introduced in 11 years, strengthening the function of finding innovation agendas and coordinating across the government.

- Having received the authority to conduct the R&D preliminary feasibility study (PFS), the MSIT made improvements by putting rigorous standards and cutting the period to six months. The national R&D innovation plan was formulated to innovate the R&D system to focus on people and society.

Second, the government increased the R&D budget of which the rate of increase had been in the 1% range by 4.4%, exceeding 20 trillion Korean won for the first time in history. It is assessed that the investment in four key areas such as data, AI, hydrogen, and 5G, eight projects to drive innovation-led growth, and research capacity in the medium and long term laid the foundation to lead innovation-led growth and secure the potential for future growth.

* Government R&D budget increase rate (%): (’16) 1.1 (’17) 1.9 (’18) 1.1 (’19) 4.4

Third, the government also put efforts to create a researcher-centric R&D environment. The government set up a task force team to revolutionize the entire R&D framework of project planning, selection, evaluation, and compensation to be researcher-centric.

- The government integrated 17 discrete systems into two and began integrating 20 research support systems into one, in order to lift the administrative burden on researchers.

- The government newly categorized government-funded research institutes in the field of science and technology by amending the Act on the Management of Public Institutions and worked to strengthen their autonomy on research.

Only 28% of NTIS' information was open to the general public in 2016 but the number rose to 78% in 2018, improving citizens’ access to S&T information.

Fourth, the government put efforts to build a tailored R&D system where local governments plan R&D projects on their own and get support from the central government. Also, the R&D special zone was facilitated, innovation infrastructure for AR and VR was built, and the AI and industrial convergence complex construction is being discussed, so that the innovation ecosystem can take root regionally with regional innovation hubs.

* Five centers in Daejeon, Gwangju, Daegu and others in 2018 Ten centers including five new centers in 2019

** 400 billion Korean won investment from 2020 to 2014 to support R&D in AI and industry convergence and startups and incubation, and allowed to skip the preliminary feasibility study for regional balanced development in January 2019.

Fifth, activities of startups and commercialization based on public-interest technologies have facilitated. The sales and employment of over 700 research spin-offs in 2018 have grown significantly, by 30% and 47% respectively over the last three years. 8,100 cases of technology transfer from the academia or research institutes to the private sector in 2018 and more research spin-offs are the outcomes.

* 339 including 179 new companies in 2016520 including 181 new companies in 2017 704 including 184 companies in 2018

Total sales being 525.4 billion Korean won with 2,733 employees as of the end of 2017, a 30% and 47% increase respectively for the past three years.

Lastly, the government strengthened S&T diplomacy by seizing the opportunity provided by the state visits of President Moon and other world leaders.

The government also participated in global events of MWC, G20, and the OECD and took the lead in agendas such as 5G and AI. Efforts were also made to encourage inter-Korean exchanges, including active S&T ODA, academic research support for topics of natural monuments and Mt. Geumgang. The old communications network used by South and North Koreas was replaced in November 2018.

* Korean President’s state visit includes Russia, Vietnam, India, France, and three Central Asian countries while the leaders of Chile, India, the Philippines, and Austria paid a state visit to Korea

** Unveiled Korea’s plan to roll out commercial 5G at MWC, introduced the importance of the 5G network as digital infrastructure and Korea’s policy to respond to the Fourth Industrial Revolution at G20, and participated in formulating AI board recommendation at OECD in March 2019.

3. Expand growth potential of Korean economy

Third, the government has made endeavors to secure the future growth potential of our economy.

The government significantly increased the investment in researcher-oriented basic research from a long-term perspective by 450 billion Korean won compared to 2017 and also prepared a life-cycle research framework for researchers to receive support stably and to continuously conduct their research. The research outcomes have been improving accordingly.

Second, “first innovation lab” was launched to support early setting up of research laps. A tailored stipend program for student researchers has been tested to enhance support for young scientists. The government is also strengthening support for female scientists who experienced career breaks.

*Number of women scientists supported for returning to work: (’16) 133 (’17) 324 (’18) 418

Third, the biotechnology field is becoming a future growth engine. Since 2017, the government support has culminated in 6.4 trillion Korean won of technology transfer and exports related to new drug development. The startup activity in the field has been buoyed, demonstrated by a rise in the number of KOSDAQ companies listed through technology evaluation and an increase in venture capital investment.

*Secured technology for new drug development, demonstrated by Celltrion’s new treatment for hematologic malignancies unveiled in US market in November 2018 and Yuhan’s technology exports worth 1.4 trillion Korean won for treating lung cancer

** Number of KOSDAQ companies listed through technology evaluation increased from five to twelve from 2017 to 2018

VC investment in biotechnology and medicine increase from 378.8 billion to 841.7 billion Korean won from 2017 to 2018

Fourth, the government established a roadmap to facilitate the hydrogen economy in January 2017, and started formulating a detailed technology roadmap to secure core technologies of hydrogen production and storage in February 2019.

Also, the government is making continuous efforts to secure key original technologies that will be the foundation of future new industries such as future computing, nanotechnology, and UAV. The government enhanced investment to reduce greenhouse gas emissions and to turn CO2 into resources by securing an original technology to produce eco-friendly printing paper using CO2.

Lastly, Korea successfully test-launched the homegrown 75-ton engine in November 2018 which is part of the Nuri, now under development in order to secure space transport capacity. Following successful launches of the weather satellite Chollian-2A and Next Sat-1 presented one more step toward a space powerhouse for Korea.

4. Reinvigorate entrepreneurial activity through deregulation and support

Fourth, the government eliminated regulations and strengthened support to SMEs and startups, vitalizing the private sector.

Since introducing the ICT regulatory sandbox on January 17, 11 cases were handled, which were closely related to daily lives and leisure of Korean citizens and in the field where regulation was maintained for a prolonged period. In particular, the regulation regarding an online matching service for people who want to participate in clinical trials was immediately lifted

* (KakaoPay / KT) Sending notices of public agencies digitally (interim authorization)

(VRisVR) Mobile VR experience truck (special regulation for substantiation)

(Starkoff) Outlet for charging smart EVs (interim authorization)

(Blakstone) Personal device for maritime distress signaling (special regulation for substantiation)

** (Huinno and Korea University Hospital) Heart-monitoring service using a wristwatch type electrocardiogram (ECG) (special regulation for substantiation)

(Joinsauto) Price comparison service on mobile for car scrapping (special regulation for substantiation)

- The enterprenuerial activity is becoming vibrant as digital notice service and wristwatch type electrocardiogram are rolling out in earnest from April and June respectively through the regulatory sandbox system.

Through authoritative interpretation, the government allowed replacing paper receipts with electronic receipts, thereby cutting 48 million paper receipts per year. Researchers can now focus on their research rather than gluing receipts for submission. The government also laid out an R&D regulation reform plan to tackle outdated institutions and practices that block innovation, and speeding up the reviewing process for its implementation.

The government also set up a taskforce to address longstanding problems of the software industry and submitted a bill to amend the Software Industry Promotion Act. The amendments include the mandatory establishment of a deliberation committee for projects, facilitation of developing rural areas, and implementation of private-led software projects, in order to build a conducive environment for the software industry.

Lastly, by supporting promising companies through integrating policies to support startups in the field of ICT, the ecosystem has become more active, demonstrated by an increase in new ICT businesses and new venture capital investment.

* Newly founded companies in the field of ICT: (’16) 8,739 (’17) 9,145 (’18) 10,117

New VC investment in ICT: (’16) 502.1 billion KRW (’17) 672.5 billion KRW (’18) 895.7 billion KRW

**Patent applications of companies that received ICT startup support: (’17) 998 (’18) 1,392

5. Improve quality of life

Fifth, the government strived to improve the quality of life through science and ICT.

First of all, household telecommunications bills went down by more than 1.8 trillion Korean won a year. The discount equivalent to subsidy was raised from 20% to 25%. The government induced telecommunications service providers to offer cheaper data plans and lower roaming prices. Also, public wi-fi installation is underway in 24,000 city buses. (4,200 buses in operation as of May 1, 2019)

* Consumer price index: (’17) 102.9 (’18) 104.5

Communications price index: (’17) 100.4 (’18) 99.5 (100 in 2015)

Second, the government has been cultivating talents in the field of science and ICT to respond to the Fourth Industrial Revolution, particularly in AI, blockchain, big data, cloud, VR, AR, autonomous vehicle, drone, and smart factory. AI graduate schools were established and more universities have come to provide software curriculum. The government also innovated education at KAIST. Education and training programs linked to jobs, targeted at youth and experts in the field, have been strengthened as well.

* AI, blockchain, big data, cloud, VRAR, autonomous vehicle, drone, and smart factory

**Youth TLO (3,330), talent cultivation of government-funded research institutes for the Fourth Industrial Revolution (598), technology workshop for science and engineering majors 2,236 participants in 2018

Third, the government established an R&D model to resolve social issues that engage citizens and made efforts to expand the model, harnessing science and technology. The government is now pursuing cooperation of all ministries to control foot-and-mouth disease, algal blooms, and odor, and to support socially vulnerable groups, and to develop and apply policing and firefighting technologies.

* 924.5 billion KRW in 2016 About 1.226 trillion KRW in 2018

Fourth, the government has expanded tailored education programs for disabled and elderly people with poor digital access and enhanced overall digital access, developed and distributed assistive telecommunications devices, and offered education to prevent and address excessive dependence on smartphones, in order to create a healthy and fair digital environment. The efforts have resulted in an increased level of digital access of vulnerable groups.

* Education for transportation reservation and mobile banking, and group education on site for running one-person media

** Digital access of vulnerable groups: 58.6% in 2016 65.1% in 2017 68.9% in 2018

Lastly, the government opened the National Children’s Science Center in December 2017 and four Children’s Science Center across the nation to offer science experience to more children in daily lives. The government is also creating a culture of science that is linked to citizens by holding science festivals in city centers and cultivating experts who deliver scientific knowledge to the general public.

* National Children’s Science Center recorded 280,000 visitors in 2018 and now building Children’s Science Centers in Daejeon, Daegu, Gwangju, and Busan from 2019 to 2020

** Korea Science Festival 2019 (April): held in city center including Seoul Nori Madang, Cheonggyecheon, and Seun Plaza, with 65 organizations, 155 programs, and about 320,000 visitors

Science and ICT Minister You Young-min said, "For the past two years, we have made a shift in our key policies and framework and built globally competitive infrastructure to realize the people-centered 4th Industrial Revolution involving leading infrastructure and R&D innovation."

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