SEOUL, KOREA - The core of the Korean-type creative economy is the desire to succeed
and business start-ups with fresh ideas, a high-ranking government official said.
Noting that resource-poor countries like Korea need to create new opportunities and compete for its existence. Yoon Jong-lok, vice minister of the Ministry of Science, ICT & Future Planning (MSIP), said, "Korea should build a virtuous circle by making the best use of its excellent science skills and information, communication, and technology (ICT)."
In an interview with Korea IT Times, the vice minister said, "Over the past four decades, the Korean economy has developed through the factor input-type economy driven by a diligent workforce. However, such an economy has reached a limit in the current situation where newly emerging industrial countries are playing catch-up. Moreover, such diverse social problems as low birth rate, rapid aging phenomenon, high unemployment rate among youths, and income polarization are emerging in the Korean society.
"To tide over the present situation, we need a drastic paradigm shift to the creative economy driven by creative minds," he stressed.
Highlighting the need for a shift to a creative economy is the statistic that start-up companies produced 1.3 million jobs annually during the past decade, whereas existing enterprises reduced 940,000 jobs during the same span.
"Accordingly, it is very important to seek the driving force of job creation through start-ups," said Yoon.
Commenting that the number of venture and small and medium-sized enterprises (SMEs) has reached 3.23 million, accounting for 99.9 percent of the total number of companies in Korea and they employed 12.63 million persons or 87 percent of the total employment, Yoon said, "Activating business start-ups will be of great help in creating jobs."
Philosophy of creative economy
Asked about his philosophy on the creative economy, Yoon said, "The creative economy refers to a strategy to generate jobs through start-up companies or convergence with creative ideas. It is a good state management method for resource-poor countries.”
"Firstly, the purpose of the creative economy is to create a new demand and market by producing fresh products and services by using imaginative power and ideas."
Secondly, the creative economy is an economic strategy to use science technology and ICT, both strengths of Korea, to the maximum extent. "For example, we can graft science technology and ICT onto creative ideas, converge fresh ideas with existing shipbuilding and car industries, and combine such ideas with cultural contents to foster new industries and create new added value."
Stressing that the creative economy does not aim to replace existing jobs, but create more and better new jobs, he said, "Korea needs to accelerate business start-ups based on fresh ideas and new technologies and expand new industries and markets through convergence between technologies and industries.
"Fourth, we should shift the pivot of the economy from hardware and software to ‘brainware’. We need to create a society where creative talents, with affluent imaginative power and creativity, persistently challenge start-ups even if they failed. Korea needs the economy to be led by creative talents," he said.
"Finally, the national development strategy should shift its paradigm from the state to the people to tide over the present vicious circle where the people live in poverty, although the country is rich," he said.
Creative economy is the paradigm to create new jobs and markets
Mentioning that the creative economy is an economic paradigm to create new jobs and markets, Vice Minister Yoon said, "It is a strategic concept to pursue economic revival. In other words, it aims to create more and better jobs by grafting the people's new imaginative power onto Korea's excellent science technology and ICT and creating new markets and industries, as well as strengthening existing industries."
The vice minister said that when various ideas of individuals and enterprises are mixed with science technology and ICT through free exchanges and communications, it could produce creative assets such as technology and knowledge.
"When such creative assets are linked with start-ups based on challenging spirit or combined with existing products and services, it could create new industries and markets, bolstering competitiveness of existing industries," he explained.
"Through mutual survival and cooperation, SMEs and large companies also can advance into the global markets and generate diversified and good jobs persistently," he said.
Role of MSIP
“As social problems are becoming further complicated, problems cannot be solved by a single ministry alone and pan-ministerial efforts are required. Accordingly, MSIP will do its best to realize the creative economy in a position placed under other ministries," Yoon said.
"In particular, MSIP will play the role of a locomotive for the creation of creative assets based on science technology and ICT, while actively supporting pan-ministerial cooperation in the hope of bearing fruits of the creative economy," he noted.
For instance, relevant ministries jointly announced a plan to realize the creative economy on June 4. In the announcement they laid out three goals, six strategies and 24 tasks for propulsion. Among other things, the project calls for fostering venture & SMEs as well as creative talents and supporting their advancement into global markets.
As a follow-up step, MSIP announced a plan to promote the contents industry and a strategy to realize the knowledge property-based creative economy.
"Since May 22, MSIP has also been operating the creative economy comprehensive portal site (www.creativekorea.or.kr) to offer such functions as creative economy-related information, educational materials, introduction of cases, and various discussions,' he said.
"In addition, MSIP has been enforcing its supports for construction of a venture start-up ecosystem in all topics ranging from start-up, growth, withdrawal, re-investment, and re-challenge based on the people's imaginative power and creativity," said Yoon.
Related to this, it plans to create a start-up challenging culture by operating an "unlimited imaginary room" at all science halls and libraries across the country to help the people manifest their imaginative power and creativity. In a concrete step, it also plans to expand the creation of the matching fund for angel investment from 140 billion won in 2013 to 300 billion won in 2017.
To further assist with the active growth of creative and innovative venture companies, MSIP plans to extend 7.2 trillion won in new credit guarantees this year and raise the portion of its business expense supports for SMEs from 7 percent in 2012 to 15 percent in 2017.
To help venture companies tide over their growth limit in the narrow domestic sales market, the ministry is also planning to establish and operate the ’Global Start-up Support Center’ offering professional consulting services concerning laws, accounting, and patents," he added.
