[Hotterview] Joo Hyung-chul "Look at President Trump, We Should Also Focus on 'Industrial Policy' for Growth"

K-Moksanism Headquarters Chief of the Democratic Party's Ruling Plan Headquarters
"Support for Initial Market Entry... Must Lead Overseas Expansion"

"Look at Donald Trump, the President of the United States. Isn't he completely focused on industrial policy? We need to set our direction that way as well."

On the 6th, Joo Hyung-chul, head of the K-Moksanism Headquarters at the Democratic Party's Ruling Plan Headquarters, said in an interview with Asia Economy, "Fiscal policy is important, but ultimately, we must drive (economic growth) centered on industrial policy."

Joo emphasized, "When experts talk about growth, they say, 'Now that we have become an advanced country, low growth is the norm, that's the new normal,' showing a lack of confidence. Advanced countries grow through innovation, productivity, and capital. We must do the same now."

Joo Hyung-cheol, Head of the Democratic Party's Ruling Plan Headquarters and K-Moksanism Headquarters. Photo by Moon Ho-nam munonam@

The core of the industrial policy advocated by Joo is a major shift from the existing paradigm where companies lead and the government provides indirect support, to a model where the private sector and government jointly lead and the government provides direct support. Direct financial support and securing sales channels that companies can tangibly feel are representative industrial policies. As the world enters a competition of industrial policies, Joo argues that our government must play the role of initial nourishment to help companies grow.

He specifically mentioned the need to nurture technology companies in artificial intelligence (AI), bio, culture, defense, energy, and food sectors. Joo explained, "If a mother fund investing in the ABCD sectors is established with a scale of over 50 trillion won, and annual investments of about 10 to 20 trillion won occur, growth is definitely possible."

He also emphasized, "The government should help pioneer initial sales channels by purchasing products from these companies through public procurement of necessary goods, enabling them to secure 'references' to expand overseas."

Joo Hyung-cheol, Head of the K-Moksanism Headquarters, Democratic Party's Ruling Plan Headquarters

He raised his voice again, saying, "When discussing growth, the topic is always how to nurture companies and industries, but there have been no direct measures, and discussions have mainly focused on whether to use trickle-down or fountain effects, all centered on fiscal policy. Now is the time to push for strong industry-centered policies."

Regarding concerns that the party's stance might tilt toward growth over distribution, Joo said, "I believe the economy is important, and both growth and distribution are equally important. The fruits of growth should be linked to the increase of quality jobs, balanced development, and expansion of welfare resources."

Meanwhile, Joo graduated from Seoul National University with a degree in Computer Engineering and earned a master's degree from the Massachusetts Institute of Technology (MIT). He has served as economic advisor to President Moon Jae-in, CEO of SK Communications, director of the Gyeonggi Research Institute, and CEO of Korea Venture Investment Corp.