[2022 Economic Policy] 'Korean New Deal' 33.1 Trillion Invested... March 'Car Semiconductor Roadmap' Established

[Sejong=Asia Economy Reporter Son Seon-hee] The government plans to make next year the inaugural year for the full-scale promotion of 'Korean New Deal 2.0,' investing a total budget of 33.1 trillion won.

By around March next year, the government will establish a 'National Roadmap for Automotive Semiconductors' related to system semiconductors, one of the key industries it is focusing on nurturing.

According to the '2022 Economic Policy Direction' announced by the Ministry of Economy and Finance on the 20th, a total of 33.1 trillion won will be invested in the three major sectors of the Korean New Deal next year: 9 trillion won for Digital New Deal, 12.7 trillion won for Green New Deal, and 11.4 trillion won for Human New Deal.

Lee Eok-won, First Vice Minister of the Ministry of Economy and Finance, stated, "We will continuously strengthen the next-generation growth engines of our economy through the Korean New Deal, fostering promising strategic industries such as the Big 3 (system semiconductors, future cars, bio-health), and revitalizing ventures and startups." He added, "The Korean New Deal will focus on fiscal investment, ensuring the smooth completion of tasks scheduled for 2022, the prompt initiation of new tasks under New Deal 2.0, and sharing achievements with the public to make results visible." He continued, "The venture and startup ecosystem will transition to being private-sector led," adding, "Along with deregulation, we will promote the establishment of a new mid-term recovery fund and support innovation by nurturing about 160,000 talents in 20 new technology fields."

The government will pilot the 'mobile driver's license,' one of the Digital New Deal projects next year, and support online sales channels for 60,000 small business owners. It will also promote Green New Deal projects that include carbon neutrality and expand and reorganize the Human New Deal sector by adding tasks related to youth policies and gap reduction.

To this end, a new 'New Deal Fund' will be established next year. This includes a 4 trillion won policy-type New Deal Fund and a 200 billion won citizen participation New Deal Fund. Relatedly, New Deal policy financing plans to supply 38.5 trillion won, more than double the initially planned 18.4 trillion won.

To promote the spread of future cars, one of the Big 3 industries, the government will implement a green purchase target system for companies such as rental car and logistics businesses. This involves revising the enforcement decree of related laws to mandate the purchase of a certain percentage of eco-friendly vehicles.

Regarding system semiconductors, based on a collaboration system between semiconductor and automobile companies with international competitiveness, the government plans to establish a 'Roadmap for Internalizing the Automotive Semiconductor Supply Chain' by around March next year. Additionally, it will promote the development of digital new technologies and industries such as cloud computing, blockchain, and metaverse.

Furthermore, the government will strengthen the institutional foundation to create a private-sector-led venture and startup ecosystem. It is preparing procedures such as revising related subordinate laws to continuously promote the introduction of multiple voting rights for unlisted venture companies. It will also revise the stock option system by differentiating benefits for venture company executives and employees and by making the market valuation of unlisted stocks more realistic.

In response to the increasingly intense global technological hegemony trend following the COVID-19 pandemic, the government plans to prepare and implement a nurturing and protection strategy for 'National Essential Strategic Technologies' with high strategic value at the national level in the first half of next year. It will also promote the enactment of the 'Special Act on the Nurturing of National Essential Strategic Technologies' covering semiconductors, batteries, and more.