2017 Ministry of Trade, Industry and Energy Work Report: Export Target of Over $510 Billion
Expanding Smart Factory Implementation to Create 30,000 New Jobs and Lead the Fourth Industrial Revolution

“We will lay the foundation for a robust economy through export recovery and the creation of new industries.”

The Ministry of Trade, Industry and Energy (Minister Joo Hyung-hwan) announced measures for export recovery and the creation of new industries in its 2017 annual work report. In the report, the Ministry announced nine key initiatives across four core areas: ▲ achieving positive export growth, ▲ accelerating structural adjustments and responding to the Fourth Industrial Revolution, ▲ building a growth ladder for small and medium-sized enterprises and boosting the vitality of small business owners, and ▲ ensuring energy safety and establishing an eco-friendly supply and demand foundation.

First, the plan is to achieve a positive turnaround in exports by accelerating innovation in the export structure and actively responding to trade issues. Accordingly, it is decided to achieve over $510 billion in exports this year by 'accelerating innovation in the export structure,' including export items, agents, markets, and methods. The plan is to attract over $20 billion in foreign investment for three consecutive years, centered on high-value-added and new industries, by stably managing risk factors resulting from the "rapid changes in the trade environment," such as the launch of the Trump administration and the strengthening of non-tariff barriers by China, and "qualitatively enhancing the attraction of foreign investment."

The government has decided to concentrate investment on 12 new industries, including robotics. The photo shows Minister of Trade, Industry and Energy Joo Hyung-hwan observing a demonstration of the Korea Institute of Machinery and Materials' (KIMM) dual-arm robot prototype, the first of its kind developed in Korea, and Eugene Robot's unmanned transport robot at the laboratory in Building 14 of the KIMM in Daejeon last October.

Attention is also drawn to the second key area, 'accelerating industrial restructuring and responding to the Fourth Industrial Revolution.' The Ministry of Trade, Industry and Energy has decided to promote 'rapid restructuring' in sectors such as shipbuilding, steel, and petrochemicals, and to actively support the industry's efforts for 'preemptive business reorganization and manufacturing innovation' through the utilization of the Corporate Vitality Act and the expansion of smart factory adoption.

In particular, to create future growth engines centered on 12 new industries, the public and private sectors will jointly invest 17 trillion won to strengthen four types of policy support, including regulatory improvements, intensive support, the establishment of convergence platforms, and the creation of initial markets. The 12 new industries include electric and autonomous vehicles, smart and eco-friendly ships, IoT home appliances, aviation and drones, robots, biohealth, and premium consumer goods (system industries), as well as advanced new materials, AR and VR, next-generation semiconductors, and next-generation displays (materials and components industries), and new energy industries.

Looking at this in detail, in the regulatory improvement sector, the plan is to expand the scope of 'negative regulatory review' to all 12 new industries, and in the intensive support sector, to expand R&D (from 3.3 to 3.7 trillion won), operate a 1 trillion won 4th Industrial Revolution Leading Fund (tentative name), and cultivate 6,500 creative talents through corporate-led industry-academia cooperation (30,000 by 2021).

To create an initial market, it was decided to utilize the PyeongChang Winter Olympics as a testbed and showcase for electric vehicles (300 units), hydrogen vehicles (25 units), and advanced service robots (50 units). For electric and autonomous vehicles and IoT home appliances, measures established last year will be further refined and continuously supplemented, while new strategies for next-generation semiconductors, distribution, and 3D printing will be formulated within the first half of this year. The plan is to create representative success stories for the 12 new industries early on through concentrated support, such as institutional improvements and incentives, for the rapidly growing new energy sector.

The third core area is "establishing a growth ladder for small and medium-sized enterprises (SMEs) and middle-sized companies, and revitalizing micro-enterprises and traditional markets." To this end, customized support tailored to the characteristics of each business stage will be strengthened to "establish a growth ladder for SMEs and middle-sized companies." Furthermore, comprehensive support including funding, infrastructure development, consulting, and education will be provided to "enhance the self-reliance of micro-enterprises, traditional markets, and small shopping districts."

The final key area is 'securing energy safety and stable supply' through measures such as strengthening the seismic performance of nuclear power plants and investing 15.6 trillion won in public enterprises for energy safety. It was decided to build a future-oriented energy supply system by significantly strengthening the safety standards of 'energy facilities,' such as nuclear power plants, and by establishing a foundation for eco-friendly energy supply and demand and improving the system.

Minister Joo Hyung-hwan stated, “Although domestic and international conditions are difficult, the Ministry of Trade, Industry and Energy will push forward with the four core sectors without wavering, with the attitude of ‘opening a path when encountering a mountain and building a bridge when encountering water.’”