Finance Minister Hong Nam-ki (second from right) speaks at a meeting on Aug. 21, 2019. [Photo provided by Yonhap]

The South Korean government readying a supersized 2020 budget of over 500 trillion won for next year against the downside risks of extended trade tensions with Japan and global-wide recession will earmark 4.7 trillion won ($3.9 billion) spending to strengthen future capabilities in fifth-generation (5G) network, artificial intelligence (AI), and future mobility to bio-health.

Hong Nam-ki, finance minister who doubles as deputy prime minister, said during a cabinet meeting on Wednesday that the government will spend 1.7 trillion won in data, 5G network and AI sectors in the first stage to establish necessary infrastructure, and 3 trillion won in developing system semiconductors, bio healthcare and future mobility technologies to bring innovation to entire industries.

The government will introduce new businesses that are expected to bring a great spill-over effect, such as offering vouchers to small- and mid-sized companies to help them buy AI related solutions and establishing old facilities’ digital twins, virtual replicas of physical devices or services, to nurture 5G market, he added.

He added that the government will initiate new projects including building a testbed for research and development of system semiconductors, setting up big data platform for data-centered hospitals and developing technologies for hydrogen and electric vehicle batteries, which are expected to foster the growth of other industries.

In order to promote energy and environmental-friendly policies, the government will provide incentives to consumers who buy high energy-efficient home appliances and give benefits to companies who achieve their voluntary energy-saving goals, he said.

The government will establish 20 industrial complexes powered by smart micro-grid by 2030 and pick towns to conduct energy rebuilding projects aimed at enhancing energy efficiency of old apartment buildings, he added.

By Sohn Il-seon and Choi Mira

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]