"Future Car Expansion Strategy Prepared... Final Plan to Be Confirmed Soon"
"Innovative Product Public Procurement Contractors Also Exempt from Contract Delay Liability"
Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Economy and Finance, is presiding over the 4th Innovation Growth Strategy Meeting and the 39th Economic Ministers' Meeting held at the Government Seoul Office Building on the 27th.
[Asia Economy Reporter Kwangho Lee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 27th, "The government will significantly expand its investment in service R&D from 4 trillion won over the past five years to 7 trillion won over the next five years."
Deputy Prime Minister Hong made this announcement during his opening remarks while presiding over the 4th Innovation Growth Strategy Meeting and the 39th Economic Ministers' Meeting held at the Government Seoul Office.
Hong emphasized, "To establish a self-sustaining private service R&D ecosystem, we will actively consider adding innovative core technologies in the service sector to the tax credit targets for new growth and core technology R&D, and including research and development software in the integrated investment tax credit targets."
He added, "We will also support the operation of a matching system to enable companies lacking their own R&D capabilities to actively utilize research and development service companies."
At the meeting, three major innovation plans for the public contract system were also discussed. Hong explained, "Since May, we have operated a joint public-private contract system innovation task force (TF), which has set three major innovation directions: supporting innovation and new industries, establishing a fair contract culture, and enhancing flexibility and efficiency of the contract system. Based on these, a total of 45 improvement measures have been prepared."
He continued, "We will expand the scope of exemption from liability for contract delays caused by the use of innovative products from contract officers to contractors, and prohibit ordering agencies from abusing their superior position to unfairly impose costs or obligations on contractors. We also plan to expand the scope of contract dispute mediation to protect the rights and interests of contracting parties without litigation."
Furthermore, he said, "We have introduced a catalog contract system that allows flexible addition of goods and services and price changes through an electronic catalog, and considering recent economic conditions, we will also promote improvements to the overall operation system of the small-amount direct contract system, such as raising the monetary threshold for small direct contracts."
The government plans to announce future car measures soon. Hong stated, "To swiftly transition to the era of future cars and secure a leading position in the global market, we will discuss and finalize strategies for the spread and market dominance of future automobiles as soon as possible."
He added, "In the case of future cars, it is a field where people can experience a major change comparable to the advent of smartphones in their daily lives. It is expected to create multifaceted effects economically, including job and export expansion and fostering new upstream and downstream industries."
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