SEOUL, March 25 (Korea Bizwire) — South Korea plans to invest more than 20 trillion won (US$16.4 billion) in data, network and artificial intelligence (AI) sectors over the next three years in a bid to help nurture future-oriented industries, the finance minister said Friday.
Along with fiscal spending, the government plans to provide support for research and development, and tax incentives for the development of the three sectors, called the D.N.A. industries, according to Finance Minister Hong Nam-ki.
Hong said the development of the D.N.A. sectors will be important in creating synergy with the so-called BIG 3 industries — the non-memory chip, bio-health and next-generation vehicle sectors.
South Korea has designated system semiconductors, bio-health and future-generation vehicles as the key three industries where it seeks to create more jobs and foster innovation-driven growth.
In an effort to nurture the data industry, the government plans to set up a state committee on data policy in line with the implementation of the related act next month.
The country will also push for the expansion of specialized 5G networks in an effort to spur new service innovations.
The government has allowed aspirant non-telecom operators to build the specialized 5G networks to help power new digital infrastructure, such as smart factories and smart farms. The government plans to spend 48 billion won this year to support the project.
To develop AI-related core technologies, the government said it plans to invest 400 billion won by 2028 to support the development of AI-powered memory chips, known as processing-in-memory (PIM).