As Korea’s exports begin to show signs of being significantly impacted by the U.S.-China trade dispute and the global economic downturn, officials announced on Monday that the government would increase software-centered (ICT) information and communication technology exports, such as AI and metaverse, and encourage demand diversification to aid domestic companies in entering the Middle East, Japan, and ASEAN markets.
During a meeting of the service industry development task force presided over by deputy prime minister for economic affairs Choo Kyung-ho and the Minister of Economy and Finance, the Ministry of Science and ICT unveiled a plan to increase the nation’s high-tech exports by enticing domestic businesses to enter new markets and supporting innovative software companies.
In terms of ICT exports, Korea has been concentrating on hardware-related products like semiconductors, screens, and smartphones. However, it has chosen to change the exporting paradigm in response to the upheaval in the global economy.
A short-term rebound in the half of this year is anticipated to be challenging because the structure of the nation’s ICT exports is focused on memory semiconductors. According to Park Yun-kyu, vice minister of research and ICT, “We need to generate chances in terms of markets and products to offset this collapse.
According to the vice minister, the government will assist domestic businesses that have adapted successfully to the quickly evolving digital technologies in their expansion into both the domestic market and foreign markets.
The government will diversify our export goods and promote new markets by actively reacting to the reach of AI services like ChatGPT and promoting digital transformation. We will combine public and private efforts to maximize potential and make every action to revive exports based on our growing digital capabilities, the vice science minister added.
Saudi Arabia and The United Arab Emirates (UAE) are two Middle Eastern nations with which the government will work to facilitate high-level talks in order to lay the groundwork for future investments and economic collaboration between the sectors.
Additionally, in October, it will send a joint private-public digital export expansion team to the UAE and Saudi Arabia with the goal of taking part in the Neom smart city project, which is supported by Saudi Arabia, and luring investors from the UAE’s sovereign wealth fund.
In order to investigate emerging markets, the ICT ministry will also send a joint public-private digital export promotion team to Southeast Asian countries on Tuesday, including Vietnam, Indonesia, and Singapore.
More than 100 representatives from domestic digital businesses and organizations will participate, under the direction of the vice minister of science, to offer each Southeast Asian nation specifically tailored export support.
Along with improving relations at the national level, the government will step up collaboration in the digital space with Japan.
It was decided in May to create the Japan-Korea Digital Policy Forum, a ministerial consultative organization, and have its inaugural meeting later this year by the ICT ministry and the Ministry of Internal Affairs and Communications of Japan.
Additionally, the two nations decided to collaborate in cutting-edge digital domains like AI, Open-RAN, and quantum communication. The two nations will create a Korea-Japan Business Forum, which will be run by the private sector, and propose joint initiatives like inviting firms from the other nation to take part in ICT exhibitions held by the two nations and supporting the procedure of exhibition pavilions.