Ministry of Planning and Budget holds 8th Innovative Growth subcommittee meeting

"Population decline limits domestic demand expansion; new industries should target global markets from the outset"

Panel calls for expanding physical AI data and providing long-term support for innovative firms

Government Complex Sejong, home to the Ministry of Planning and Budget
Government Complex Sejong, home to the Ministry of Planning and Budget

The government is preparing a mid- to long-term strategy to respond to complex crises in which multiple risks — including food security, cybersecurity, energy and infectious diseases — occur simultaneously. Experts also suggested that new growth industries such as artificial intelligence should target global markets, including the United States and China, from the policy design stage. Population decline limits the potential for expanding domestic demand, they said.

The Ministry of Planning and Budget and the 7th Mid- to Long-term Strategy Committee held the 8th Innovative Growth subcommittee meeting Thursday to discuss ways to respond to complex crises and create new growth engines for sustainable growth.

The Mid- to Long-term Strategy Committee, an advisory body to the minister of planning and budget that supports the establishment of national mid- to long-term strategies, was launched in 2012. Kwon Oh-hyun, former chairman of Samsung Electronics, chairs the committee, which includes 20 experts from industry, academia and other fields.

The meeting examined the potential impact on industry at large of new types of crises — including food security, cybersecurity, energy and infectious diseases. It also addressed already-discussed risks such as population decline and the climate crisis.

"Beyond the crises already under discussion, such as population decline and the climate crisis, risks like food security, cybersecurity, energy and infectious diseases could deal a blow to industry at large if they materialize," Kwon said. He added that society needs to discuss how to respond to such complex crises.

Panelists also argued that securing new growth engines requires moving away from industrial policy centered on domestic demand. Choi Yun-hee, a visiting research fellow at the Science and Technology Policy Institute, said population decline limits the potential for expanding demand at home. New growth engine policies should be designed with an eye toward entering global markets such as the United States and China from the outset, she said.

Panelists also said government support for innovative companies should be provided over the long term, in line with each company's stage of growth. Hwang Kyung-min, CEO of VPIX Medical, said fostering innovative companies in new growth sectors requires a shift from small-scale, fragmented support to tailored, long-term support. He added that detailed system design is needed to ensure such support actually works on the ground.

Panelists cited data as the key factor that will determine competitiveness in the physical AI industry. Yoon Sung-roh, a professor of electrical and computer engineering at Seoul National University, said data accumulation is the most important factor for the success of physical AI policy. He proposed that government policy shift toward data collection and supply while strengthening cooperation among relevant ministries.

Lee Jang-hyuk, a professor at Korea University Business School, said the government should take a leading role in responding to national crises. However, an environment that allows private capital to circulate smoothly must be created to develop new growth engines and help companies scale up.

The Ministry of Planning and Budget also briefed the committee on three plans discussed at the fiscal strategy council meeting on Aug. 27. They included a strategy to foster the humanoid robot ecosystem, a plan to demonstrate physical AI in eight key sectors, and measures to foster innovative companies in new growth sectors.

The Ministry of Planning and Budget and the Mid- to Long-term Strategy Committee plan to continue discussions on future strategy tasks based on the opinions presented at the meeting.


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