Australia-Korea Foundation

Korea's 3 Year Plan for Economic Innovation

Highlights from President Park's address on her 3 Year Plan for Economic Innovation

An economy based on strong fundamentals

  • Public sector reform
    • Including a new system to control the total amount of public and corporate bonds
  • Develop a principled market economy
    • Joint task force of business and petitioners to monitor the recent Acts providing the institutional foundation for fair trade
    • Workplace relations
    • Consumer rights
  • Build a strong social safety net
    • Including employment insurance and improvements to the public pension programs

An economy based on dynamic innovation

  • Develop the creative industries
    • Innovation centers for creative industries to be established in 17 cities
    • A "technology bank" will be assigned to collect unused ideas, patents and knowhow held by government research institutions and companies and help their transfer to those in need of such intangible assets, like entrepreneurs and startup companies.
  • Invest for the future
    • Raise research and development spending to 5 percent of GDP to improve the country's science and technology capacity, on which the creative industries are based.
    • Introduce a 'Korea research fellowship' where 300 world-class scientists and researchers will be invited to Korea to support the country's economic growth and to help raise the R&D capability of local universities
  • Make inroads into overseas markets

An economy that balances between domestic demand and exports

  • President Park emphasised that growth is to be distributed equally to the public. She highlighted the high level of household debt and the rise in required key money deposits, as the biggest barriers to the expansion of domestic demand.
  • She spoke of deregulation as a solution to improve investment.
    • "For the five most promising service industries, in particular – healthcare, education, finance, tourism and software – which not only offer the jobs most preferred by young people but also boast high investment demand, the Government will conduct complete re-evaluations of regulations through a public-private task force."
    • In the healthcare sector, regulations will be rationalised on for-profit hospitals in Free Economic Zones. Comprehensive services will be provided to assist medical organizations with overseas expansion and work to promote telemedicine services.
  • Job creation to stimulate domestic demand.
    • President Park said clear improvements must be made in employment rates for young people and women, in particular. Korea aims to create 500,000 new jobs for young people and 1.5 million new jobs for women, and will improve childcare availability and access to part-time work arrangements.