New Investments to Start Growth Engine for 2010
Since the global economic crisis, countries around the globe have experienced an economic recession with high unemployment rate. However, many experts believe the recession is almost over. The government, associations and many companies are ready to make investments in new fields with high potentials.
700 billion won new growth fund investment will help the small and medium size companies.
A 700 billion won new growth fund will be invested before the end of the year. On the 19th, the Ministry of Knowledge Economy opened a seminar called the 'New Growth Fund Investment Presentation' at Shilla Hotel and released its management policies for each field. The new growth fund that will be invested into raising the competitiveness of companies in the field of green growth, advanced fusion, and bio is an aggregate of 504 billion won of four separate funds from which 110 billion won is from the government and 4,840 billion won is from private funds. Next month, a fund worth 100 billion won will be added to the field of green growth. First, Vice Minister Lim Chae-min spoke, "I look forward to the new growth fund to act as an incubator to help small and medium size enterprises to gain competitiveness in the global market." The government stated that it would use the investment cooperation network to actively support the fund. This day, management companies of the new growth fund introduced their fund investment strategies and held private consultations with 150 technology based companies.
LED industry will expand to be ahead of competition with more investment
The LED industry will begin investing 4 trillion won starting from next year until 2012. 17 trillion won worth of new investments are expected next year in the field of IT device from which 7 trillion will come from semiconductors and 8.2 trillion from display. In addition, starting from next year there will also be active investment in new growth like the green car and bio-similar.
Choi Gyung-hwan, the Minister of Knowledge Economy, held a meeting at JW Marriot Hotel on the 17th with representatives of companies participating in the 'New Growth' including Jung Ji-taek, vice chairman of Doosan heavy industry; Suk Ho-ick, Vice Chairman of KT; Lim Hyung-gyu, president of Samsung new business development; Oh Se-hyun, president of SK Telecom; Sung Chang-mo, Director of Hyosung R&D Business Labs; and Shin Jae-cheol president of LG CNS. During this meeting, companies once again broached that they will invest 4 trillion won until 2012, and will also localize the production of Metal organic chemical vapor deposition (MOCVD) by next year.
Government will invest 200 billion won in Cloud Computing
The government will announce the Cloud Computing Promotion Project, a distinctive Korean model which will create 20 billion won business. According to the government and related industries, the Ministry of Knowledge Economy, Korea Communication Commission and Ministry of Public Administration and Security had been preparing the Pan-government Cloud Computing Promotion Plan. The plan is to introduce the cloud computing to the public, promote the system, and collect opinions from consumers.
First, the government plans to invest 4.7 billion won to increase the demand for cloud computing. It includes the construction of cloud infrastructure that supports IPTV, wireless service, smart grid, green PC room, u-work and cloud related businesses. Moreover, the government will strengthen the R&D businesses to solve technical problems. It will benefit multinational IT companies. One of the governors forecasted "I am not sure the exact scale of business, but the budget for coming year will go over 10 billion won only for the government integrated electric computer center and the total budget for 3 departments will be about 20 billion won."
The government will also operate an integrated discussion organization of 3 departments to avoid duplicate investment that comes from the attribute of Cloud Computing because it has many huge fields like IT, hardware, software and network. One of the experts who joined the examination said, "I think it will be very helpful to develop the cloud computing only because each department can cooperate each other instead of competing each other."
One of the related industry spokesperson said, "It is very important for the cloud computing to make new value from the convergence of each field's element," he continued, "It is not only for the cooperation of plans, but the synergy effect influences the business in both private and government sectors of R&D."