The government will invest 3.4 trillion won in the so-called three major game changer sectors: artificial intelligence (AI), semiconductors, advanced biotech, and quantum technology development. In addition to these sectors, policy financing of 75.4 trillion won will be focused on new industries including aerospace and fostering unicorn ventures.
On the 19th, the government discussed the 2025 new growth 4.0 promotion plan and examined the current status of new growth 4.0 infrastructure during a Cabinet meeting presided over by Prime Minister and acting President Choi Sang-mok, who is also the Minister of Economy and Finance. The new growth 4.0 project announced in December 2022 aims to enhance economic dynamism amid slowing economic growth, intensified technological hegemony competition, and competition from latecomers.
Considering changes in the global industrial and trade environment this year, the government has decided to accelerate the implementation of existing projects. It will focus on three major game changer sectors and core strategic industries like semiconductors, secondary batteries, displays, and shipbuilding and shipping. Furthermore, the government plans to promote swift legislative amendments through inter-ministerial collaboration and strengthen the management of collaboration tasks.
In the three major game changer sectors, the government will primarily pursue the establishment of a national AI computing center, the preparation of subordinate laws for the Basic AI Act, the establishment of a system for immediate market entry medical technologies, the development of a Korean-style biohealth cluster innovation strategy, the enactment of the Digital Healthcare Act, the launch of a quantum strategy committee, and the preparation of a comprehensive five-year plan related to quantum.
Looking at core strategic industry projects, in the semiconductor sector, the government will revise the follow-up regulations of the Semiconductor Special Act and promote the establishment of semiconductor cluster infrastructure such as power, water supply, and roads. In the secondary battery sector, it will support the development of next-generation battery technology, expand policy financing to promote private investment, and pursue legislative amendments to create a recycling ecosystem. In the display sector, it will support the development of organic light-emitting diode (OLED) technologies, secure core technologies for inorganic light-emitting diodes (iLED), and promote self-sufficiency in major materials, parts, and equipment.
The government will also actively support promising future industries. First, regarding urban air mobility (UAM), it will discover specialized urban air transportation models and initiate urban demonstration projects. In the space sector, the government will conduct the fourth launch of the Nuri rocket in November and commence the second phase of lunar exploration. The development of the Korean Positioning System (KPS) will continue. This year, the government plans to select six additional carbon-neutral cities and will also work on legislative adjustments for unmanned delivery using robot drones. Together, it will enhance support for the establishment of three additional gourmet belts to promote Korean culture, expand financial support of 520 billion won across five content sectors, and strengthen support for winning large overseas construction projects.
To this end, the government will provide infrastructure support. First, the technology investment for the three major game changers will be increased from 2.7 trillion won to 3.4 trillion won, a 27.1% increase. In the AI sector, the government will focus on developing core technologies at each stage of the value chain and will invest significantly in securing innovative technologies such as digital bio and synthetic biology. In the quantum sector, it will undertake large flagship projects and establish joint quantum research hubs in collaboration with academia and industry. Additionally, it will launch the quantum strategy committee and prepare a comprehensive five-year plan.
Innovation-driven research and development (R&D) will also be expanded. It will grant full authority to the project manager, abolish evaluation grades, facilitate quick equipment procurement, and provide exemptions for preliminary feasibility studies, thereby intensifying R&D through differentiated systems and increased investment. In April this year, the government revised the National Research and Development Innovation Act manual and plans to begin the revision of the innovation act in the second half of the year.
The government will also increase global R&D funds from 1.8 trillion won to 2.2 trillion won and will select two more Global Industrial Technology Cooperation Centers. It will support not only the Global AI Frontier Lab, the Boston-Korea Project, and the Quantum Alliance (QUA), but also the joint seaweed biomass technology development proposed by the U.S. energy agency.
The government will also intensively support sectors where private financing is not sufficiently provided. It plans to supply 75.4 trillion won in policy financing through the Korea Development Bank, Industrial Bank of Korea, credit guarantee funds, and technology guarantee funds. Of this, 37.2 trillion won will be invested in fostering advanced strategic industries such as semiconductors and AI, 21.5 trillion won in support for promising future industries such as aerospace and quantum technology, and 16.7 trillion won in fostering unicorn ventures.
The government will implement customized financial support corresponding to corporate growth. It will select 197 super-gap startups to support 600 million won in commercialization funds over three years. The top 10% of corporations will be screened to receive up to 1 billion won in commercialization funds for two years, and support for participation in global investor relations will also be provided. Additionally, it plans to increase global fund resources by 1 trillion won to introduce outstanding startups to leading global investors.
The government will also nurture key personnel in the new industries and core strategic industries. In the AI sector, it aims to train 550 youth AI and software professionals tailored to industrial demand through non-traditional innovative education. In the quantum sector, it plans to train 540 PhD candidates by 2032, and in the semiconductor sector, it will cultivate practical personnel through the Semiconductor Academy (800 people), education programs for employees of small and medium-sized enterprises and job seekers (2,675 people), and the System Semiconductor Design Education Center (1,280 people). It will also train 1,000 personnel in each of production processes and technical talents for the shipbuilding sector.
The government will also establish a portal for information on the three major game changers to enhance awareness and provide knowledge about new technologies and new businesses. It will integrate and provide specialized policy information, latest trends, and research reports on the three major game changers from relevant ministries, public institutions, and government-funded research institutions. By the end of this year, the government plans to hold the first international forum centered on the three major game changers to share current issues.