Govt. to push for development of cloud computing technologies to strengthen data infrastructure
The government will push for the development of cloud computing technologies to bolster the data infrastructure of the country as part of efforts to foster new growth engines, the finance ministry said.
The Ministry of Economy and Finance announced the plan as part of the new growth engine project, aimed at fostering new growth engines for the economy.
The government aims to create a cloud data center that uses homegrown artificial intelligence chips and establish a national AI computing center.
The ministry said it will also expand investment in bio and medical research and development projects to improve the country's response capabilities to infectious diseases.
In detail, it will support 14 vaccine development projects and 34 diagnosis and medical treatment development projects this year.
The projects will include developing virus treatments to respond to the so-called Disease X, which refers to pathogens that can lead to another pandemic, and gene treatment technologies.
The government will also devise an innovation strategy for the biohealth cluster and push for the installation of a quantum strategy committee as part of efforts to promote the growth of new industries, the ministry said. (Yonhap)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
3 hours ago
- Korea Herald
Lee Jae-myung's economic playbook: big spending, bigger control
Pro-spending aides take key economic posts as President Lee moves to centralize budget planning under presidential office President Lee Jae-myung has assembled a pro-spending economic team to spearhead his early policy agenda, while leaving the key post of finance minister vacant — a move widely seen as a strategic effort to weaken the Ministry of Economy and Finance and shift fiscal authority toward the presidential office to accelerate policymaking. The appointments of Kim Yong-beom as chief of staff for policy, Ha Joon-kyung as senior presidential secretary for economic growth, and Ryu Deok-hyun as presidential advisor for fiscal planning underscore this shift. All three support an expansionary fiscal policy, in line with Lee's vision of using public spending to drive structural reform and revive domestic demand. Lee has notably elevated the role of fiscal planning within the presidential office. Ryu's newly created post was upgraded from a low-level secretarial role under the Moon Jae-in administration to vice-ministerial rank. Coupled with the sidelining of the Finance Ministry in key appointments, the move signals the administration's intent to centralize control over economic policymaking. The presidential office described Ryu as someone who will "strengthen democratic oversight of fiscal policy" by restoring discipline within the ministry and mobilizing resources to fulfill Lee's campaign pledges. A professor at Chung-Ang University and former official at Korea's top public finance institutions, Ryu is known for his expertise in budgeting and fiscal reform. Ha's appointment also breaks with precedent. The role of senior economic secretary — traditionally held by finance ministry officials — now goes to the Hanyang University economics professor and former Bank of Korea economist. A longtime policy ally of Lee, Ha is considered a key architect of the president's economic agenda. His title was revised to include 'growth,' underscoring the administration's focus on recovery and long-term restructuring. Overseeing both is Kim Yong-beom, a seasoned economic policymaker who previously served as first vice finance minister, vice chair of the Financial Services Commission and senior economist at the World Bank. The presidential office highlighted his leadership during Korea's COVID-19 response, noting his role in crafting and implementing measures credited with swiftly stabilizing the economy during the crisis. Kim has outlined a vision for what he calls 'structurally transformative fiscal policy' — redirecting Korea's accumulated wealth into active circulation to spur consumption, employment and productivity. 'What we need now isn't just stimulus or tax cuts, but a structural shift in the economy,' he wrote in a recent social media post. This philosophy underpins the administration's first major economic initiative: a supplementary budget exceeding 20 trillion won ($14.7 billion). Framed as a recovery package for struggling households amid high inflation and weak demand, the funds are expected to be delivered mainly through government vouchers and other cash-based support. Experts caution that Lee's expansionary fiscal approach may offer only a temporary boost unless paired with reforms that address the root causes of Korea's weak domestic demand. Kim Jung-sik, emeritus professor of economics at Yonsei University, warned that the proposed supplementary budget could provide only a short-term lift. 'If most of the funds are channeled into local currency handouts, consumption may tick up in the short term, but there's a strong chance the government will be forced to repeat the exercise next year,' he said. 'The focus of fiscal policy should be not simply on disbursement, but on strategic allocation.' While fiscal expansion may be necessary, Kim stressed it must go hand in hand with structural reform to ensure long-term stability. 'The downturn is rooted in structural weaknesses,' he said. 'Treating only the symptoms — such as small business distress — without revamping institutional structures or Korea's industrial base will result in ballooning debt and mounting fiscal inflation.' In contrast, Myongji University professor Woo Suk-jin emphasized the importance of short-term recovery measures such as the supplementary budget, given Korea's grim outlook. 'When the economy is clearly deteriorating, the government's role becomes critical,' the economist said. 'Rather than intervening across the board, it must draw clear boundaries. Stimulus is an urgent task that must be addressed directly, but it should be paired with support from institutions equipped to guide long-term growth.' Woo also noted that fiscal expansion must be matched by efforts to bolster revenue. 'Eventually, the state will need to raise revenue — not by hiking tax rates, but by broadening the tax base through structural reforms,' he said. He also supported curbing the Finance Ministry's power, calling such a move 'in line with the principle of checks and balances.' 'The mega-ministry model may have once been efficient, but it no longer fits the current moment. What's needed now is a clear and transparent assessment of the fiscal landscape,' he said. Woo added that operational strength, and alignment with the president's new economic team, should be central to selecting the next finance minister. 'It's a misconception that only career finance officials can run the ministry,' he said. 'If the ministry is to be broken up, a capable technocrat — or even a politician — could be a viable choice.' The finance minister post has remained vacant since Choi Sang-mok stepped down on May 1. While the ministry has long dominated Korea's economic policymaking, Lee is seeking to carve out its budgeting function and bring it under presidential control, potentially positioning Ryu, as fiscal planning advisor, to take the lead.
Korea Herald
7 hours ago
- Korea Herald
7 out of 10 public firm chiefs have over 1 year left in terms under new government
Seven out of 10 heads of state-run companies and institutions still have more than one year remaining in their terms under the new Lee Jae-myung administration, a corporate tracker said Tuesday. According to Leaders Index, 221, or 70.8 percent, out of 312 chiefs at such public entities currently have more than one year left in their terms. The finding is based on a comprehensive review of relevant data from AL10, the public institution management information disclosure system, on 331 public organizations. Leaders Index said leadership positions at 19 of the 331 organizations were currently vacant. The company also said 56 of those leaders with more than one year left in their terms were appointed after then President Yoon Suk Yeol declared martial law on Dec. 3, while another 53 were appointed after the National Assembly passed a bill to impeach Yoon on Dec. 14, raising concerns over potential "midnight appointments" intended to limit the new government's ability to effectively take control of state affairs. Among those with less than a year left in their terms, 38 are expected to complete their terms this year, while the terms of another 21 posts have already expired. Including the 19 vacant posts, the new government is expected to be able to appoint 78 new agency heads by the end of this year. (Yonhap)
Korea Herald
a day ago
- Korea Herald
8 in 10 Korean exporters see need for AI adoption, but actual use remains low: poll
A majority of South Korean exporters recognize the need to employ artificial intelligence in their businesses to boost efficiency, but only a small fraction are actively utilizing the technology, a survey showed Monday. According to the survey conducted from Feb. 17-19 by the Korea International Trade Association, 78 percent of 396 respondents from the export industry said AI adoption is necessary, but only 16.9 percent said they are actively using AI to improve productivity or manage tasks. Another 68.7 percent answered they are either using it on a limited basis or still reviewing its usage. The poll showed that 21.9 percent of the companies that use AI utilize such services in marketing and branding, while 19.7 percent utilize AI in planning and product development. Cost burdens and a shortage of skilled personnel were cited as the top hurdles in AI adoption, at 26.1 percent and 25.4 percent, respectively. KITA noted a lack of refined data and related infrastructure for industrial AI use, and called for a phased approach in fostering the use of AI among exporters. "Public-private collaboration is essential for AI adoption among exporters, particularly to help small and medium-sized enterprises adopt AI effectively based on manufacturing data," an official at KITA said. (Yonhap)
