According to the report on current status and tasks of next generation growth engine businesses released by the Bank of Korea on July 5, the government's R&D budgets increased to 9.8 trillion won (US$10.7 billion), up 9.6% or 853.3 billion won (US$927.4 million) year-on-year. However, R&D budgets for next generation growth engine businesses amount to 400 billion won (US$434 million), which is up only 1.4% or 6.1 billion won (US$6.62 million).
Accordingly, the proportion of budgets allocated to 10 next generation growth engine businesses accounts for 4.5% of the total government R&D budget this year. The proportion was 4.9% last year. The 10 next generation growth engine businesses are digital TV and broadcasting, display, next generation mobile communication, intelligent robots, future cars, next generation semiconductors, home network, digital content and software, next generation battery and new bio drugs and organs.
The initial plan which was set up in 2003 was supposed to assign three trillion won to the 10 next generation growth engine businesses. However, the budget was reduced to two trillion won as the plan was revised because some of the businesses were stopped. In addition, the initial plan included doubling of the budgets from 371.7 billion won (US$403.5 million) in 2004 to 871.9 billion won (US$946.7 million) in 2008.
On the other hand, the budget was sharply reduced to 498.7 billion won (US$541.5 million) in 2008 under a revised budget plan. Under these circumstances private investments focus on next generation mobile communication and intelligent home network, not for next generation battery and future cars.
In the report, the Bank of Korea said that government agencies working on the businesses should closely cooperate, quality human resources should be fostered and selective support should be provided considering levels of technology development and global market shares.
