Ministry of Science and ICT "Abolishing the Mobile Communication Sales Subsidy Law... Investing 770 Billion Won in AI for People's Daily Lives"

Ministry of Science and ICT Announces 2024 Work Plan
Global R&D Government Investment 1.8 Trillion KRW
Policy Finance 5 Trillion KRW... Establishment of AI Research Hub

Minister Lee Jong-ho of the Ministry of Science and ICT / Photo by Jo Yong-jun jun21@

The government will invest approximately 770 billion KRW to accelerate innovation in citizens' lives through artificial intelligence (AI) technology. To reduce household communication costs, it will abolish the Act on the Improvement of Distribution Structure of Terminal Devices (Terminal Device Distribution Act) and introduce a new 5G plan priced in the 30,000 KRW range.

On the 13th, Lee Jong-ho, Minister of Science and ICT, announced the major policy implementation plan for 2024, which includes the goal of becoming a global science and technology powerhouse and a model digital nation.

First, the plan aims to spread AI across all industries and daily life to increase productivity and create jobs. This is part of the so-called "Korea Digital Strategy 2.0." Through AI and digital innovation, the government will foster industries that drive economic growth and support them based on inter-ministerial collaboration to fully leverage private sector capabilities.

Specifically, projects such as the Metaverse (extended virtual world) leading project (33 billion KRW) and blockchain and twin globalization (6.75 billion KRW) will be promoted. An "On-device AI Activation Strategy" will also be prepared to capture the on-device AI market based on domestically produced AI semiconductors.

Additionally, 773.7 billion KRW will be invested in AI everyday life projects that apply AI to essential services such as healthcare and education to improve citizens' quality of life. Key tasks like "MyDoctor24" and "My Own Textbook" will be selected and supported through public-private cooperation based on R&D, services, and institutional improvements.

Competitive AI and digital companies will receive bold policy financing totaling 5 trillion KRW, while the ICT regulatory sandbox will support the early market launch of innovative services such as medical MyData (personal credit information management) and autonomous driving.

Storefront of a mobile phone retailer / Photo by Yongjun Cho jun21@

The abolition of the Terminal Device Distribution Act to promote competition in terminal subsidies is also included in the work plan. User protection provisions will be transferred to the Telecommunications Business Act, and the caps and disclosure system for additional subsidies will be abolished.

By next month, a new lowest tier 5G plan priced in the 30,000 KRW range will be introduced, along with a new youth plan offering various benefits, and the youth age limit will be raised from 29 to 34 years old. Additionally, by the first half of this year, negotiations with manufacturers will be conducted to encourage the release of mid-range devices priced between 400,000 and 800,000 KRW.

To support the market settlement of new telecom operators that won the 28 GHz frequency through auctions, plans will be made to assist with the use of communication facilities and terminal distribution.

To expand cooperation with technologically advanced countries, the scale of global R&D government investment will be increased to about 1.8 trillion KRW this year.

In the AI field, next-generation technology development (58 billion KRW) will be pursued to overcome the limitations of generative AI, and "AI Research Hubs" will be established domestically and in the United States (9 billion KRW) to conduct advanced research with leading overseas researchers. In the advanced bio field, joint research (15 billion KRW) with Boston, USA, which has the world's top bio-cluster, will be supported. In the quantum field, an open quantum fab accessible to researcher-led utilization will be built.

To attract overseas talent to Korea, comprehensive support services for settlement will be provided, and a "Global R&D Special Committee" will be established under the Science and Technology Advisory Council to lay the foundation. Budgets will be expanded and differentiated systems established for R&D projects that can have innovative ripple effects.

Next-generation semiconductors, next-generation networks, and space are selected as the "three global leading technologies" and will be intensively fostered. Domestic low-power, high-performance AI semiconductors will be developed, and R&D for 6G commercialization and standardization, open RAN (open radio access network) domestic equipment demonstration, and preliminary feasibility studies for low-earth orbit satellite communication (479.7 billion KRW) will be promoted. In the space sector, the Space Agency will be launched in May to establish the foundation for space governance. Next month, companies participating in the next-generation launch vehicle will be selected, and the space industry cluster (Jeonnam, Gyeongnam, Daejeon) will be initiated.

A high-risk, high-reward frontier challenge R&D project (49 billion KRW by 2028) will be launched. To realize carbon neutrality by 2050, the domestic production technology of clean hydrogen will be localized by selecting and operating the "National Hydrogen Focused Research Laboratory (dedicated hydrogen R&D institution)."

Minister Lee Jong-ho of the Ministry of Science and ICT stated, "We will create an R&D hub where the world's top researchers challenge innovative research together and thoroughly prepare for the great transition to AI and digital. We will ensure that Korea can leap forward as a science and technology powerhouse and a model digital nation."