Promoting the 'Korean New Deal' to Overcome the COVID-19 Crisis and Establish a Leading Economic Foundation
Need to Focus on Smart City Projects Applying the 4th Industrial Revolution for Tangible Results
[Asia Economy Reporter Yuri Kim] As the novel coronavirus disease (COVID-19) pandemic is expected to cause an unprecedented prolonged global recession, countries around the world are already actively moving to build smart infrastructure in preparation for the 'post-COVID era.' In China, a recent investment plan for 'New Infrastructure' totaling 34 trillion yuan (approximately 5,800 trillion won) was announced to mitigate economic shocks and secure future growth engines. In Europe, it is reported that a 6 billion euro investment fund has been established to invest in the healthcare industry, digital infrastructure, and software in preparation for the upcoming contactless era.
The government also presented the 'Korean New Deal' policy in May as a strategy to build smart infrastructure for the post-COVID era. President Moon Jae-in is scheduled to announce the comprehensive plan for the 'Korean New Deal' on the 13th.
In this regard, the Korea Construction Industry Research Institute argued on the 9th in a report titled 'Desirable Directions for the Korean New Deal' that the direction of the current government-led 'Korean New Deal' project needs to be shifted to focus on building smart cities. Researcher Kim Jeong-ju of the institute emphasized, "The core of the 'digital economy' and 'green economy' that the government aims to realize through the 'Korean New Deal' is to transform urban spaces, which are the foundation of industrial activities, into smart cities." Researcher Kim pointed out, "When people hear 'digital economy' or 'green economy,' they tend to think only of products or services that apply advanced technologies. However, neither the government nor the general public properly recognizes that such products or services can only be supplied within smart urban spaces in the era of the Fourth Industrial Revolution."
For example, autonomous vehicles need roads themselves to be transformed into 'smart roads' to achieve full autonomy, not just the current level of driver assistance systems. Similarly, for drones to become intelligent drones, comprehensive infrastructure such as unmanned aerial vehicle traffic management systems and ground control systems must be in place.
Researcher Kim stressed, "This Korean New Deal project should not be promoted simply by supplying information and communication technology (ICT) devices to consumers and companies who do not feel the necessity. It must be redesigned and promoted from the perspective of smartifying urban spaces, which form the foundation of future new industrial activities."
He added, "The world after this COVID crisis will be significantly different from before COVID. While difficulties for companies and households are increasing, the government must meticulously plan investments based on rational forecasts for the future. Thorough consideration of the project contents and implementation methods of this 'Korean New Deal' is necessary for the re-leap of our industry."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
