Oh Myung , Deputy Prime minister and minister of Science & Technology

With the start of 2005, several signs indicating a gradual turn-around for the Korean economy have become apparent. Exports have been increasing at a steady rate and domestic consumption and investment, both previously stagnant, have resumed upward trends. Although it may still be premature to make specific predictions, domestic and overseas economic analysts nonetheless forecast a growth rate of 4-5 percent for Korea this year. In order to ensure that these positive prospects become reality, growth potential must be strengthened by focusing on scientific and technological innovations that will enable Korea to create new jobs, boost household income, and maintain competitiveness in the global market. Facing the challenge of meeting a dramatically expanding Chinese economy and keeping up with advanced countries, Korea should commit itself to the development of state-of-the-art technologies and the fostering of high value-added industries. Last year, the government expanded and restructured the Ministry of Science and Technology (MOST) by raising the position of the head of the ministry to the level of deputy prime minister. The ministry's enhanced status in the cabinet hierarchy has given MOST the power to comprehensively coordinate microeconomic policies for technology, industry and human resources. Furthermore, the Office of Science and Technology Innovation within MOST has been established to build a foundation for coordinating science and technology-related policies and carry out state-funded R&D activities more efficiently. With this change, the Ministry of Finance and Economy will manage macroeconomic matters while MOST manages microeconomic issues. This administrative structure is unprecedented even in advanced countries and indicates a strong belief in economic growth driven by science and technology. Evidence of the effectiveness of this new system can be seen in many places. The monthly science and technology-related ministers' meeting has become the most active discussion table within the government. Ideas raised in the meeting, including the hiring of 248 new patent specialists by the Korean Intellectual Property Office, the commercialization of large state-funded research and development (R&D) projects and the expansion of the national defense budget, are being implemented in the process of policy making in the relevant ministries. In coming years, the meeting will discuss many other issues related to science and technology in its endeavor to deliver outstanding results. Five Tasks for This Year The ministry has a number of tasks to carry out this year step by step according to defined priorities. These are as follows: First, we will identify next-generation growth engines to lead the national economy in the future, just like semiconductors and mobile phones do today. To this end, we will press ahead with developing 10 future growth engines, such as next generation batteries and intelligent robots. In addition, we will identify and support large-scale national R&D projects, such as the urban transit maglev (UTM) and wing-in-ground (WIG) craft, which have the potential to be commercialized in relatively short periods. Second, we will foster highly creative scientific and technological manpower. As ways to support outstanding students, we will expand scholarships for science and engineering. We are also considering reducing the period of special mandatory military service for research personnel from four to three years. To support outstanding scientists, we will increase incentives, an example being the increase in research royalties from 35 percent to 50 percent for scientists who have demonstrated excellence. Furthermore, we will introduce a meritorious pension system to ensure the financial stability of these scientists after retirement. One of the main problems in Korea is that although college graduates of science and engineering are being produced in large numbers, they lack the skills needed in actual work and fail to satisfy the demands of today's rapidly developing industries. To tackle this problem, we will make the education system oriented more toward the demands of industry. College curriculum will be made more flexible to meet the requirements of businesses. Science and technology majors also need programs giving them both technical knowledge and managerial abilities that will help them become CEOs and venture startup owners in the future. Third, we will support the growth of fledgling venture companies that specialize in specific technologies. To this end, we will foster and strengthen supplies of venture capital in distinct fields. More specifically, we will benchmark U.S.-type venture entrepreneurs that strictly manage venture companies from start-up and through growth. This will provide more opportunities for venture start-ups to obtain the funding necessary to develop key technologies based on the growth-potential of their ideas. As a result, small- and medium-sized venture firms will be able to take the initiative in driving technological development. In addition, the issuing of science and technology government bonds may be introduced as a means of securing the necessary financial resources to support development in science and technology, including venture capital. The reasoning behind these bonds is that although future generations may be put in debt, they are also the very beneficiaries of the investment. Fourth, we will initiate and lead a nationwide effort to develop the sciences in Korea. The science campaign led by the private sector has already demonstrated the possibility of entrenching and expanding a science-based culture in Korea. To further boost public interest and hope in science and technology, we are planning to carry out a variety of related events that involve the participation of the general public. As a part of this, we will continually pursue the initiative to realize Korea's first astronaut. Fifth, we will support the development of core and basic technologies to enhance growth potential and help achieve technological competitiveness. Toward this end, we will increase the proportion of the budget for basic research to 25 percent by 2007 and provide greater support for intellectual property-based technology development, particularly in the fields of biotechnology and nanotechnology. In order to bring about enhanced efficiency and effectiveness for the results of development, we will continually upgrade the research environment based on greater self-regulation and responsibility. Since the beginning of this year, the new administrative system in the field of science and technology has so far performed well. By implementing the above-mentioned tasks for 2005 under this system, MOST will contribute to expanding growth potential as well as to enhancing the level of science and technology in society and ultimately achieve a per capita income level of $20,000.