A foundation for the activation of an educational-industrial-laboratorial network Following the designation of the Daedeok R&D complex as a special zone, along with the passing of a special law, the R&D Special Zone has led to the rebirth of the Daedeok Valley, with the promise of a new spring for advanced research and development. The mayor of Daejeon Metropolitan City, Dr. Yum Hong-chul, is placing the highest priority in the City's civic affairs on the successful operation of the Daedeok R&D Special Zone. The Mayor said in a special interview with the Korea IT Times on the occasion of the official launch of the zone at the end of July, this year that the progress of the Daedeok R&D Special Zone is geared directly toward stimulating the development of Daejeon City, adding that he is certain that science technology will be key to national competitiveness. Through his welcoming speech delivered at the International Symposium to commemorate the launch of the Daedeok R&D Special Zone on July 29, Mayor Yum pointed out that although the valley has taken root as a magnet for the nation's science technology, both nominally and virtually, it is true that it has until now been insufficient for the special zone to link to national wealth creation by industrializing or commercializing cutting-edge technologies. Yet, the Mayor expresses an optimistic view, explaining that by adding production functions to research functions, the commercialization of research performance has become possible. Furthermore the groundwork has been prepared for the activation of an educational-industrial-laboratorial network He stressed that he is confident the Daedeok R&D Special Zone will become an advanced base to realize Daejeon's dream of it helping Korea enter the ranks of the world's most advanced countries, serving as a driving force to raise average GDP per capita to the level of $20,000 to $30,000. By 2015 when the active nurturing efforts of Daejeon City and the government bear fruit, he expected that the Daedeok Special Zone would be transformed into an international R&D innovation cluster with global competitiveness as current turnover of 600 billion won (approx. $587 million) increases to 30 trillion won (approx. $28.5 billion), with 3,000 resident companies. One of the world's leading R&D cities of the future In relation to the effect of the Daedeok R&D Special Zone designation, Yum predicted that it would serve as an impetus for Daejeon to emerge as a pioneer in the global arena. By 2015, it will have been transformed into a worldwide innovation cluster of 3,000 resident companies (now 824 companies), 20 foreign research institutions (currently 2 institutions), 20 NASDAQlisted companies( currently zero), 16,000 overseas patent registrations (currently 1,659 cases), technology fee income of 500 billion won( currently 51.8 billion won), and turnover of 30 trillion won (now only 3.6 trillion won). The Mayor went on to explain that 'The second Daedeok Techno Valley' new formation (approx. 1 million pyeong( 3.3 million m2)), construction business as well as surrounding area's business district will be activated and also as resident companies are on the rise, 5,000 new jobs are expected to be created every year. As for the fostering of customized human resources, Yum notes that Daejeon City will support these companies manpower needs with the momentum of the special zone R&D project in which universities and companies take part jointly, thereby allowing them to offer differentiated human resource talent from KAIST in the fields of NT, BT, and atomic energy and from ICU in the field of IT. He furthermore expected that as investment funding of 100 billion won (approx. $97 million) and 300 billion won (roughly $293 million) will be available by 2009 and by 2012 respectively, these funds will be invested in venture start-ups or laboratory companies within the Special Zone. Mayor Yum disclosed that working expenses for the Daedeok R&D Special Zone Support Headquarters amounting to 10 billion won (roughly $9.78 million) in 2005 and approx. 70 billion won (about $68 million) in 2006 will be made available within this special zone. Accordingly, he said that the City's phased strengthening as a science technology city as well as the increasing degree of international awareness will be reflected in the rising influx of foreigners. This trend will be assisted by the inducement of foreign R&D laboratories and foreign-invested companies, additional establishment of foreign schools, and the operation of a foreign- run hospital as well as accommodation for foreigners. With the injection of this Daedeok Special Zone business, Mayor Yum foresees that Daejeon City will expand into a progressive city in all fields, such as culture, physical education, environment and traffic. Establishing a one-stop service support system Concerning future measures for promoting the Daedeok R&D Special Zone, the Mayor introduces that Daejeon City is devising a local rates support program for laboratory companies, high-tech companies and foreign-invested companies _ such as 100 percent reduction and exemptions over five years in the case of income tax and corporate tax and a 100 percent reduction and exemption over seven years in the case of property tax or exemption in the case of acquisition tax and registration tax. The mayor added that Daejeon City is planning to invest especially in high-tech companies, laboratory companies and initial venture start-ups within this special zone by forming investment funds of 40 billion won (approx. $39 million) by 2006, 100 billion won (approx. $97 million) by 2009, and 300 billion won scale (approx. $293 million) by 2012 respectively. With regard to developing strategic industries, Yum stressed that Daejeon City would facilitate commercialization, with organic cooperation between innovation subjects by constructing 18 state-of-the-art industry clusters comprising four strategic industries (IT, BT, new material, mechatronics) and four new growth engine industries (aviation space, defense, atomic energy, and Ubiquitous technology), nurturing special clusters by segments such as IT, BT, and NT as well. Finally, in order to create a comfortable globalized environment to improve the living environment for foreigners, Daejeon City is planning to develop an exclusive complex for foreigners covering approx. 50,000 pyeong (165,000m2) and a residential complex of 27,000 pyeong (78,000 m2) scale by 2007 within the Daedeok Special Zone respectively.