ICT ministry's budget up 4.8 pct for 2015

By Kang Yoon-seung

SEOUL, Sept. 22 (Yonhap) -- South Korea's ICT ministry said Monday its budget for 2015 will rise 4.8 percent on-year, with planned allocations to assisting start-ups, developing the country's own space rockets and building a defense against electromagnetic attacks.

The Ministry of Science, ICT, and Future Planning said its budget for next year, subject to parliamentary endorsement, is set to increase to 14.3 trillion won (US$13.7 billion), up 659.9 billion won from 2014.

"The budget for next year is anticipated to play a key role in improving and revitalizing the economy," Vice ICT Minister Lee Suk-joon said.

The ministry, created by President Park Geun-hye, who took office in February 2014, is tasked with pushing the "creative economy." The concept is to boost the local economy by turning innovative ideas into businesses through science and technology, while generating business opportunities by converging different industries.

South Korea's combined budget for creative economy-related projects will reach 8.3 trillion won in 2015, with the ICT ministry taking up around 3.05 trillion won.

By sector, 3.5 trillion won will be allocated to the creative economy projects, including supporting start-ups and helping small and medium firms advance to overseas markets.

Lee said this budget will not be going to large companies since their participation in creative economy projects are limited.

"Rather, we will be suing their (large companies') manpower and funds" for the projects," he said.

Another 6.5 trillion won will be used to expand research and development, including building an "international science-business belt" to foster the country's potential in basic science technology.

The ministry said 223.3 billion won will go to developing the fifth-generation (5G) network technology, along with other new industries such as the Internet of Things and big data sectors. The budget for fostering local software industries will also soar 14.4 percent on-year next year to 644.4 billion won.

The government's move to obtain source technologies will continue next year, setting aside 255.5 billion won to develop South Korea's own space rockets, up 8.5 percent on-year, and 165.4 billion won on medical technologies, up 14.3 percent from 2014.

Amid the rising popularity of 3-D printing, the ministry will inject 2 billion won in the sector.

Some 13.2 billion won will be also spent on developing an electromagnetic pulse (EMP) defense system.

An EMP bomb refers to a weapon which, when detonated at a high altitude, can generate electromagnetic pulses strong enough to destroy electronic and electrical devices on the ground.

The government will also allocate 2.5 billion won to establish a secure online financial transaction system, as Microsoft Corp. suspended its technical supports for the Windows XP operating system, while the latest Window 7 is believed to have security flaws.

"In order to have start-ups and small and medium firms stand at the center of the creative economy, the ministry will also expand support to foster a 'gazelle-style' or a South Korean-style Yozma Fund," Lee said.

A gazelle firm refers to companies that achieve rapid growth, expanding sales by more than 20 percent for three consecutive years. The Yozma Fund, created by the Israeli government and private investors in 1993, has invested in new venture capital funds and has a successful track record.

colin@yna.co.kr
(END)