The government has decided to focus on 'performance' when allocating the budget. Projects that do not yield results will undergo restructuring, while bold investments will be made in ultra-innovative items that have a high potential for success. The government has decided to exempt preliminary feasibility studies for projects such as artificial intelligence (AI).
On the 22nd, the Ministry of Economy and Finance announced the 'New Government Economic Growth Strategy,' which outlines the framework for the next five years. The ministry aims to implement a virtuous cycle of 'active finance → performance enhancement → economic growth → securing fiscal sustainability.'
To this end, the ministry has designated projects such as smart agriculture, AI robots and home appliances, AI drones, and smart fisheries as ultra-innovative projects for concentrated investment during the 'establishment' phase of fiscal policy. When allocating expenditure limits for the next year, investment performance will be reflected.
In the 'execution' phase, blockchain technology will be used to transparently manage national treasury funds. The intention is to pay subsidies and other funds through Central Bank Digital Currency (CBDC) to prevent misuse of funds outside their intended purposes. The ministry plans to collaborate with the Bank of Korea to launch a pilot project in the second half of next year.
In the 'evaluation' phase, the system for evaluating fiscal projects will be restructured with a focus on performance and expenditure restructuring. The evaluation results will be thoroughly reflected in the following year's budget.
Essential businesses in pure research and development (R&D) and construct-type R&D are originally subject to preliminary feasibility studies but will now be exempted. Preliminary feasibility studies will also be exempted for ultra-innovative projects such as AI.
Contracts for procuring ultra-innovative products and services such as AI, robots, and drones will increasingly adopt a negotiated contract method. While competitive bidding is the principle for procurement contracts, this indicates that the same principle will not be strictly applied to industries with future growth potential.
The amount spent on public procurement of ultra-innovative products and services, which was about 1 trillion won last year, is set to increase to 2 trillion won by 2030, supporting entry into the procurement market with a pre-purchase and post-performance verification method. Investments currently focused on traffic infrastructure and sewage treatment facilities will also expand to AI infrastructure.
The government plans to establish a new evaluation system for public institutions to support the ultra-innovative economy. For listed public enterprises, it will develop business performance evaluation indicators to create a separate evaluation system focused on marketability. For unlisted public enterprises, the weights for safety and disaster management will be increased, and a comprehensive evaluation of public value and the degree of improvement in technology and productivity will be conducted.
The Korea Advanced Institute of Science and Technology (KAIST) and other four science and technology universities will gradually eliminate small entrusted projects and reorganize them into large-scale projects related to national strategic agendas. To ensure successful execution of large-scale projects, comprehensive management of the entire project cycle and a dedicated evaluation system will be established. If the goals of large-scale projects are achieved earlier, substantial incentives will be provided to research personnel.
Support for specialization and engineering and science fields at universities will also be promoted. For key national universities, industry-university-research cooperation linked to the region will be expanded, and the credit exchange system will be strengthened. If regional private universities specialize around regional strategic industries by adjusting their departments, they will be supported in developing educational programs. In engineering and science, investments will be made in innovation based on convergence in undergraduate programs, and support for the growth of engineering and science students will be enhanced.