Gov't seeks 97.8 tln won investment for growth industries

(ATTN: UPDATES with remarks from President Lee in paras 3-4, more details)
By Lee Joon-seung
SEOUL, Jan. 13 (Yonhap) -- The government said Tuesday it is aiming to attract
97.8 trillion won (US$71.2 billion) worth of investment over the next five years
to build up three core industries vital for sustained economic growth.

The 2009-2013 plan, outlined at the National Science and Technology Council
chaired by President Lee Myung-bak, calls for the government to directly inject
7.3 trillion won and for the private sector to invest 90.5 trillion won in the
specified industries, the Ministry of Knowledge Economy said.
The move comes as Seoul is struggling to offset a looming economic crisis that it
says is now threatening to push the economy into an "unprecedented recession."
"When every country in the world is focusing all their efforts to overcome the
economic crisis, we must go a step further and find a new engine for future
economic growth," the president was quoted as telling the council.
"We have to realize we are now standing at a crossroad where we either leap to
the next stage or don't," he said while pushing for the investments, according to
Kim Eun-hye, a spokeswoman for the presidential office.
To bolster the country's green technology sector, as well as its high-tech
convergence and value-added industries, Seoul will help create a 250 billion won
"new growth industry fund" with the business community this year, with the total
to be gradually increased to 3 trillion won by 2013.
The fund will 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.
"The key industries were selected to allow the country to become a leading player
instead of just following in the footsteps of others and have the greatest impact
on advancing the economy to the next level," Lee Dong-geun, head of the
ministry's growth industry office told reporters after the meeting.
He said development of the three core industries would require money and
resources to be invested into 10 projects, with the ministry setting aside little
over 1.3 trillion won to get work started.
The ministry in charge of the country's industrial, trade and energy policies
said to enhance the country's capability in the green technology sector, funds
will go to help promote development of technologies for reusable energy, reducing
greenhouse gas emissions, energy efficient automobiles and advanced application
of light emitting diodes.
For high-tech industrial convergence, efforts will center on merging the
broadcast and telecommunications sectors, promoting next generating information
technology, robotics applications, new industrial materials and biotech-medicare
advances.
The masterplan also calls for funds and resources to go into the
contents-software area so as to expand the country's clout in the value-added
services arena, thereby helping to create new jobs.
In addition to the industrial development masterplan forwarded by the Knowledge
Economy Ministry, seven other projects recommended by nine other ministries are
to be pursued in the coming years that can help create good jobs and improve the
quality of life.
Policymakers at the council meeting said technologies related to water treatment
and the building of eco-friendly cities, as well as advances in financing, the
food industry, health, education and tourism would all have a positive impact on
the nation's competitiveness and domestic economy.
Other areas that are slated to receive full backing in the coming years will be
in basic R&D support.
The Ministry of Education, Science and Technology said it will increase research
funds in so-called green technology development areas from 900 billion won in
2007 to over 6.3 trillion won between 2009 and 2012.
The sum will be independent of the 7.3 trillion won set aside by the Knowledge
Economy Ministry.
It added that the country will build an international science business center
that could eventually create 3,000 new jobs for skilled personnel and become home
to the heavy ion accelerator slated for completion in 2015.
There are only five such accelerators in the world that are designed to help
study the structure of the nucleus and interactions between nuclei, as well as
help scientists conduct research on astronomical events, global climate change
and bio-medicine.
The government, meanwhile, said that if development of new growth engines and R&D
proceed on schedule, the total increase in value-added production is estimated to
reach 694 trillion won in 2018, with the number of new jobs increasing by 3.52
million and exports growing by US$920 billion.
yonngong@yna.co.kr
bdk@yna.co.kr
(END)