A Nation of the People A Just Republic of Korea_English

Page 1

A Nation of the People, A Just Republic of Korea


Table of Contents

Government Goal

An Economy Pursuing Inclusive Growth

Strategy

Fostering a Job-creating Economy to Achieve Income-led Growth

Strategy

Making a Vibrant and Fair Economy

Strategy

Preparing for the Fourth Industrial Revolution by Supporting

the Advancement of Science and Technology

6 13

19

Strategy Promoting Innovative Growth and Start-ups Led by Small and

Medium-sized Business Ventures 26

Government Goal

A Nation Taking Responsibility for Each Individual

Strategy

Providing Inclusive Welfare 32

Strategy Fostering a Fair Society that Respects Labor and Promotes

Gender Equality

Strategy

Building a Country Where Liberty, Creativity and Culture Thrive

39 44

Government Goal

A Peaceful and Prosperous Korean Peninsula

Strategy

Ensuring Strong National Security and Responsible Defense

54

Strategy Fostering Inter-Korean Reconciliation and Cooperation as well as

Denuclearization of the Korean Peninsula 61

Strategy

Reinforcing International Cooperation through Diplomacy

68


Government Goal

An Economy Pursuing Inclusive Growth

Strategy Fostering a Job-creating Economy to Achieve Income-led Growth Strategy Making a Vibrant and Fair Economy Strategy Preparing for the Fourth Industrial Revolution by Supporting

the Advancement of Science and Technology

Strategy Promoting Innovative Growth and Start-ups Led by Small and

Medium-sized Business Ventures


Government Goal

An Economy Pursuing Inclusive Growth

Strategy Fostering a Job-creating Economy to Achieve Income-led Growth Strategy Making a Vibrant and Fair Economy Strategy Preparing for the Fourth Industrial Revolution by Supporting

the Advancement of Science and Technology

Strategy Promoting Innovative Growth and Start-ups Led by Small and

Medium-sized Business Ventures


Strategy

Fostering a Job-creating Economy to Achieve Income-led Growth Question

What is a “job-creating economy for income-led growth”? What does it mean? “ Create a virtuous circle in the economy where good jobs increase

To create quality jobs that meet public expectations Ministry of Employment and Labor

▪ What is the government doing to create good jobs that meed the needs of the people? “Create jobs tailored to regional and industrial needs” -­­ The government set up the Presidential Committee on Job Creation to oversee and manage employment policies across all government organizations. It built a job creation dashboard to monitor job-related national policies and progress, conducted more employment impact assessments, and reorganized state-funded programs for increased efficiency in public spending.

household income, and, in turn, lead to growing demand”

• Addressing the issues of low growth, job shortages, and social/economic inequities facing the Korean economy requires a strategy that allows all conglomerates, smalland medium-sized enterprises (SMEs), management and labor to grow together. The key to this strategy lies in ‘creating good jobs.’ Job creation leads to increased household income and increased consumption, which, in turn, energizes the domestic economy, stimulating growth and fostering a virtuous cycle in the economy. • Solving the issue of unemployment requires job creation, reduction in work hours and non-regular positions, and an increase in decent jobs. As part of this effort, the government has taken the initiative to create 810,000 decent jobs in the public sector. It is also important for businesses and labor to work together to create a substantial number of jobs by reaching a grand social compromise and fostering industrial innovation. •S olving the issue of household debt is a pre-condition for a favorable economic environment that is attained backed by stable income. It is also important to strengthen the job safety net against the contingencies of unemployment and retirement, so that people with income can consume more while maintaining a sense of security about the future.

National Policy Tasks What is the government doing to achieve this? ▪ To create quality jobs that meet public expectations -Ministry of Employment and Labor ▪ To build an infrastructure for social services and create jobs -Ministry of Health and Welfare ▪ To strengthen employment assistance tailored to age and gender -Ministry of Employment and Labor ▪ To strengthen support for workers to better prepare for unemployment and retirement -Ministry of Employment and Labor

▪ To promote innovation in the service industry to create decent jobs -Ministry of Economy and Finance ▪ To curb household debts for income-driven growth -Financial Services Commission ▪ To create an advanced structure for the financial industry -Financial Services Commission

6

-­­ Based on a roadmap to create public sector jobs, the government is striving to create 810,000 jobs by 2022, while promoting dialogue with local economies and industries to ensure that new jobs are tailored to specific needs. ­­- It advanced an employment model that is a win-win for both management and labor (e.g. Gwangju and Daegu) nationwide. It established regional and industrial networks to ensure that local industries and governments can take the initiative in employment policies. -­­ The ultimate goal of the government is to induce more good jobs to be created by priming the pump with public sector jobs.

To build an infrastructure for social services and create jobs Ministry of Health and Welfare

▪ What are social service jobs? How are they created? “Create 340,000 social service jobs by 2022” ­­ -P ublic sector jobs are designed to provide more social services to children, senior citizens, people with disabilities, and others in need of care and will help improve the quality of life of citizens and create quality jobs. ­­- The government plans to create 340,000 quality social service jobs by 2022. These jobs will be created by developing public infrastructure, reinforcing local delivery systems, and expanding coverage of social services. -­­ Public Agencies for Social Service have been established to provide quality social service jobs. These agencies aim to create new jobs as well as improve labor conditions. 7


Strategy

Fostering a Job-creating Economy to Achieve Income-led Growth Question

What is a “job-creating economy for income-led growth”? What does it mean? “ Create a virtuous circle in the economy where good jobs increase

To create quality jobs that meet public expectations Ministry of Employment and Labor

▪ What is the government doing to create good jobs that meed the needs of the people? “Create jobs tailored to regional and industrial needs” -­­ The government set up the Presidential Committee on Job Creation to oversee and manage employment policies across all government organizations. It built a job creation dashboard to monitor job-related national policies and progress, conducted more employment impact assessments, and reorganized state-funded programs for increased efficiency in public spending.

household income, and, in turn, lead to growing demand”

• Addressing the issues of low growth, job shortages, and social/economic inequities facing the Korean economy requires a strategy that allows all conglomerates, smalland medium-sized enterprises (SMEs), management and labor to grow together. The key to this strategy lies in ‘creating good jobs.’ Job creation leads to increased household income and increased consumption, which, in turn, energizes the domestic economy, stimulating growth and fostering a virtuous cycle in the economy. • Solving the issue of unemployment requires job creation, reduction in work hours and non-regular positions, and an increase in decent jobs. As part of this effort, the government has taken the initiative to create 810,000 decent jobs in the public sector. It is also important for businesses and labor to work together to create a substantial number of jobs by reaching a grand social compromise and fostering industrial innovation. •S olving the issue of household debt is a pre-condition for a favorable economic environment that is attained backed by stable income. It is also important to strengthen the job safety net against the contingencies of unemployment and retirement, so that people with income can consume more while maintaining a sense of security about the future.

National Policy Tasks What is the government doing to achieve this? ▪ To create quality jobs that meet public expectations -Ministry of Employment and Labor ▪ To build an infrastructure for social services and create jobs -Ministry of Health and Welfare ▪ To strengthen employment assistance tailored to age and gender -Ministry of Employment and Labor ▪ To strengthen support for workers to better prepare for unemployment and retirement -Ministry of Employment and Labor

▪ To promote innovation in the service industry to create decent jobs -Ministry of Economy and Finance ▪ To curb household debts for income-driven growth -Financial Services Commission ▪ To create an advanced structure for the financial industry -Financial Services Commission

6

-­­ Based on a roadmap to create public sector jobs, the government is striving to create 810,000 jobs by 2022, while promoting dialogue with local economies and industries to ensure that new jobs are tailored to specific needs. ­­- It advanced an employment model that is a win-win for both management and labor (e.g. Gwangju and Daegu) nationwide. It established regional and industrial networks to ensure that local industries and governments can take the initiative in employment policies. -­­ The ultimate goal of the government is to induce more good jobs to be created by priming the pump with public sector jobs.

To build an infrastructure for social services and create jobs Ministry of Health and Welfare

▪ What are social service jobs? How are they created? “Create 340,000 social service jobs by 2022” ­­ -P ublic sector jobs are designed to provide more social services to children, senior citizens, people with disabilities, and others in need of care and will help improve the quality of life of citizens and create quality jobs. ­­- The government plans to create 340,000 quality social service jobs by 2022. These jobs will be created by developing public infrastructure, reinforcing local delivery systems, and expanding coverage of social services. -­­ Public Agencies for Social Service have been established to provide quality social service jobs. These agencies aim to create new jobs as well as improve labor conditions. 7


As investment grows in welfare infrastructure (national and public daycare centers, national and public nursing facilities, and public hospitals), new jobs will be created in the social service sector. At the same time, the quality of these jobs will be ensured by increasing wages, shortening work hours, and improving labor conditions. ­­- The creation of social service jobs will enhance delivery of welfare and health services in local communities, raising residents’ service satisfaction and quality of life. The health and welfare outreach services offered by community service centers will also be reinforced, while increasing the number of public officials at local governments charged with social welfare services. By 2022, one out of four senior citizens aged 65 or more will be able to benefit from visiting health care services.

To strengthen employment assistance tailored to age and gender Ministry of Employment and Labor

▪ Will young people and women be able to find jobs that satisfy their needs? “ E xpand mandatory hiring of young adults, guarantee employment until the mandatory retirement age, support post-retirement employment or business startups, and ensure gender equality in employment” ­­ - The government supports job stability and re-employment of young adults, senior citizens, and women who take career breaks. - To help young people join the workforce, the government is enforcing mandatory hiring of young adults in public institutions, while encouraging the private sector to hire young adults. To this end, the ratio of young adults hired by public institutions will be raised from 3% to 5% of the total number of new hires every year. In 2018, the government established a new incentive for more hiring of young adults; for every three persons that SMEs hire as regular employees, the government covers the wage of one person. Until 2017, a total of 5,000 persons received this benefit, and every year from 2018 to 2020, a total of 20,000 newly hired young people will be entitled as well. The government also created Young Jobseeker’ Allowance. From 2017 to 2018, young jobseekers were entitled to 300,000 won for three months. From 2019, young adults who look for jobs by their own initiative receive a jobseekers’ allowance of 500,000 won for six months. - F rom the second half of 2020, this allowance will be incorporated in the unemployment assistance in Korea, which also targets the vulnerable such as lowincome workers, the self-employed. - For the middle-aged and elderly population, the government is striving to provide 8

jobs with guaranteed employment until the mandatory retirement age and to ensure the retirement age system is more effective. To this end, it is working to improve the practice of terminating employment agreements in general, including preventing employers from abusing voluntary retirement and modifying provisions on dismissals on grounds of business conditions. As people live and stay at work longer, the government is offering support for people seeking re-employment in their particular phase of life, including job transfers, re-employment, or retirement to make people could make “triple-cropping” in their working life. - It is increasing the number of businesses that are subject to affirmative action (AA), while enforcing the Equal Employment Opportunity Act for all workplaces. And 158 New Job Centers for Women will help more people, specially who are suffering from career break, find work by supporting business start-ups, vocational training, and employment incentives. - Quality jobs will be made available for young adults so that they can enjoy improved work conditions. The middle-aged and elderly will enjoy guaranteed employment until the mandatory retirement age; they will also have more opportunities to develop their vocational skills for a new job. Moreover, the government is working to foster non-discriminatory workplace environments and re-employment opportunities for women.

To strengthen support for workers to better prepare for unemployment and retirement Ministry of Employment and Labor ▪ What is the employment safety net? How does it ensure stable jobs? “ Expand employment insurance eligibility and strengthen unemployment benefits as an insurance” ­­ - A multi-layered employment safety net system is built, featuring greater insurance of unemployment benefits and expanded employment insurance eligibility. This would create the conditions for the jobless or retired persons to focus on their job search without concern for their livelihood, help people better adapt to the labor market, and raise the possibility of life-long employment. - First, the eligibility for employment insurance will be widened. The government is working to make employment insurance gradually available to artists, previously ineligible for industrial accident compensation insurance due to their unstable employment status, as well as to dependent self-employed workers who are eligible for industrial accident compensation insurance. Senior citizens aged 65 or over and the 9


As investment grows in welfare infrastructure (national and public daycare centers, national and public nursing facilities, and public hospitals), new jobs will be created in the social service sector. At the same time, the quality of these jobs will be ensured by increasing wages, shortening work hours, and improving labor conditions. ­­- The creation of social service jobs will enhance delivery of welfare and health services in local communities, raising residents’ service satisfaction and quality of life. The health and welfare outreach services offered by community service centers will also be reinforced, while increasing the number of public officials at local governments charged with social welfare services. By 2022, one out of four senior citizens aged 65 or more will be able to benefit from visiting health care services.

To strengthen employment assistance tailored to age and gender Ministry of Employment and Labor

▪ Will young people and women be able to find jobs that satisfy their needs? “ E xpand mandatory hiring of young adults, guarantee employment until the mandatory retirement age, support post-retirement employment or business startups, and ensure gender equality in employment” ­­ - The government supports job stability and re-employment of young adults, senior citizens, and women who take career breaks. - To help young people join the workforce, the government is enforcing mandatory hiring of young adults in public institutions, while encouraging the private sector to hire young adults. To this end, the ratio of young adults hired by public institutions will be raised from 3% to 5% of the total number of new hires every year. In 2018, the government established a new incentive for more hiring of young adults; for every three persons that SMEs hire as regular employees, the government covers the wage of one person. Until 2017, a total of 5,000 persons received this benefit, and every year from 2018 to 2020, a total of 20,000 newly hired young people will be entitled as well. The government also created Young Jobseeker’ Allowance. From 2017 to 2018, young jobseekers were entitled to 300,000 won for three months. From 2019, young adults who look for jobs by their own initiative receive a jobseekers’ allowance of 500,000 won for six months. - F rom the second half of 2020, this allowance will be incorporated in the unemployment assistance in Korea, which also targets the vulnerable such as lowincome workers, the self-employed. - For the middle-aged and elderly population, the government is striving to provide 8

jobs with guaranteed employment until the mandatory retirement age and to ensure the retirement age system is more effective. To this end, it is working to improve the practice of terminating employment agreements in general, including preventing employers from abusing voluntary retirement and modifying provisions on dismissals on grounds of business conditions. As people live and stay at work longer, the government is offering support for people seeking re-employment in their particular phase of life, including job transfers, re-employment, or retirement to make people could make “triple-cropping” in their working life. - It is increasing the number of businesses that are subject to affirmative action (AA), while enforcing the Equal Employment Opportunity Act for all workplaces. And 158 New Job Centers for Women will help more people, specially who are suffering from career break, find work by supporting business start-ups, vocational training, and employment incentives. - Quality jobs will be made available for young adults so that they can enjoy improved work conditions. The middle-aged and elderly will enjoy guaranteed employment until the mandatory retirement age; they will also have more opportunities to develop their vocational skills for a new job. Moreover, the government is working to foster non-discriminatory workplace environments and re-employment opportunities for women.

To strengthen support for workers to better prepare for unemployment and retirement Ministry of Employment and Labor ▪ What is the employment safety net? How does it ensure stable jobs? “ Expand employment insurance eligibility and strengthen unemployment benefits as an insurance” ­­ - A multi-layered employment safety net system is built, featuring greater insurance of unemployment benefits and expanded employment insurance eligibility. This would create the conditions for the jobless or retired persons to focus on their job search without concern for their livelihood, help people better adapt to the labor market, and raise the possibility of life-long employment. - First, the eligibility for employment insurance will be widened. The government is working to make employment insurance gradually available to artists, previously ineligible for industrial accident compensation insurance due to their unstable employment status, as well as to dependent self-employed workers who are eligible for industrial accident compensation insurance. Senior citizens aged 65 or over and the 9


self-employed will also enjoy eased eligibility conditions for employment insurance and receive financial support for social insurance premiums. - T o build a robust employment safety net, the government improved the unemployment benefit scheme and enhanced unemployment benefits as an insurance by raising the benefit amount and extending the length of payment in October 2019. The eligibility was also expanded to include marginal part-time workers who work two days or less a week. The government is also working to introduce public retirement pension for those working at small- and medium-sized enterprises (SMEs) and microbusinesses. - To help people find work, the government will open more Employment-Welfare Plus Centers and staff them with more job consultants. It is striving to offer specialized, user-friendly employment support. To this end, it is establishing a national job information platform using artificial intelligence (AI). The platform will recommend jobs and offer data to inform employment policies. - As the era of the Fourth Industrial Revolution approaches, it is important to foster skilled workers in promising sectors of the future. Since 2017, the government has offered more new technology training as part of a program to foster the workforce to lead the Fourth Industrial Revolution. From April 2019, the government is implementing the “vocational skills development innovation plan” to reorganize the vocational training system into one that can address the needs of the Fourth Industrial Revolution.

Promote innovation in the service industry to create decent jobs Ministry of Economy and Finance

▪ How does the government support innovation in the service industry and create good jobs? “Encourage small services to use ICT for higher productivity and decent job creation” ­­ - The service industry is a boon to the economy with its added-value and contribution to job creation. The government is committed to creating quality jobs in the private sector by fostering promising services, and is working hard to make sure that our services can grow into competitive global players. - First, in an effort to improve the service industry in a systematic way, the government announced Plans to Develop the Service Sector in June 2019. The plans contain such policies as removing discrimination in manufacturing and services; setting up basic 10

service infrastructure involving statistics, standardization and R&D; promoting service-manufacturing industrial convergence; ensuring efficient management; and drawing up plans to foster promising services. - Second, the government has prepared plans to develop four promising services that have great potential to create jobs - tourism, healthcare and medicine, logistics, and content. In accordance with the plans, the government is working to ease regulations, make institutional improvements, support exports, and expand policybased financing. The government also established the Plans to Promote a Sharing Economy in January 2019 to help develop new service markets and lay the necessary institutional framework. - Finally, the government has drawn up six rounds of measures to support small service businesses since July 2017. The efforts aim to improve productivity through ICT, and provide consulting and training programs to make it easier for companies to start or close business.

To curb household debts for income-driven growth Financial Services Commission

▪ What policies help to manage household debt and protect financial consumers? “ Manage the total amount of household debt through rigorous assessment of debt servicing ability” ­­ - Household debt is a major risk factor to our economy, which requires a systematic management. In order to introduce a credit evaluation system based on the borrower’s debt servicing ability, the government expanded the application of the debt service ratio (DSR), which represents a borrower’s total liabilities against annual income, from banking sector to non-banking sectors as well. As a result of these efforts, the rise in household debt levels has slowed down for the past three consecutive years. - Also, the government lowered the maximum interest rate from 27.9% to 24% to ease the burden of high interest payments. The government is also working to help delinquent debtors recover through a debt restructuring program, while enhancing oversight of debts with expired extinctive prescription. Furthermore, the government will gradually introduce non-recourse mortgages, which limit liability of borrowers, starting with policy institutions and expanding to commercial banks. - Finally, the government is working to enact the Financial Consumer Protection Act to protect consumers in every stage of their consumption process, which is expected 11


self-employed will also enjoy eased eligibility conditions for employment insurance and receive financial support for social insurance premiums. - T o build a robust employment safety net, the government improved the unemployment benefit scheme and enhanced unemployment benefits as an insurance by raising the benefit amount and extending the length of payment in October 2019. The eligibility was also expanded to include marginal part-time workers who work two days or less a week. The government is also working to introduce public retirement pension for those working at small- and medium-sized enterprises (SMEs) and microbusinesses. - To help people find work, the government will open more Employment-Welfare Plus Centers and staff them with more job consultants. It is striving to offer specialized, user-friendly employment support. To this end, it is establishing a national job information platform using artificial intelligence (AI). The platform will recommend jobs and offer data to inform employment policies. - As the era of the Fourth Industrial Revolution approaches, it is important to foster skilled workers in promising sectors of the future. Since 2017, the government has offered more new technology training as part of a program to foster the workforce to lead the Fourth Industrial Revolution. From April 2019, the government is implementing the “vocational skills development innovation plan” to reorganize the vocational training system into one that can address the needs of the Fourth Industrial Revolution.

Promote innovation in the service industry to create decent jobs Ministry of Economy and Finance

▪ How does the government support innovation in the service industry and create good jobs? “Encourage small services to use ICT for higher productivity and decent job creation” ­­ - The service industry is a boon to the economy with its added-value and contribution to job creation. The government is committed to creating quality jobs in the private sector by fostering promising services, and is working hard to make sure that our services can grow into competitive global players. - First, in an effort to improve the service industry in a systematic way, the government announced Plans to Develop the Service Sector in June 2019. The plans contain such policies as removing discrimination in manufacturing and services; setting up basic 10

service infrastructure involving statistics, standardization and R&D; promoting service-manufacturing industrial convergence; ensuring efficient management; and drawing up plans to foster promising services. - Second, the government has prepared plans to develop four promising services that have great potential to create jobs - tourism, healthcare and medicine, logistics, and content. In accordance with the plans, the government is working to ease regulations, make institutional improvements, support exports, and expand policybased financing. The government also established the Plans to Promote a Sharing Economy in January 2019 to help develop new service markets and lay the necessary institutional framework. - Finally, the government has drawn up six rounds of measures to support small service businesses since July 2017. The efforts aim to improve productivity through ICT, and provide consulting and training programs to make it easier for companies to start or close business.

To curb household debts for income-driven growth Financial Services Commission

▪ What policies help to manage household debt and protect financial consumers? “ Manage the total amount of household debt through rigorous assessment of debt servicing ability” ­­ - Household debt is a major risk factor to our economy, which requires a systematic management. In order to introduce a credit evaluation system based on the borrower’s debt servicing ability, the government expanded the application of the debt service ratio (DSR), which represents a borrower’s total liabilities against annual income, from banking sector to non-banking sectors as well. As a result of these efforts, the rise in household debt levels has slowed down for the past three consecutive years. - Also, the government lowered the maximum interest rate from 27.9% to 24% to ease the burden of high interest payments. The government is also working to help delinquent debtors recover through a debt restructuring program, while enhancing oversight of debts with expired extinctive prescription. Furthermore, the government will gradually introduce non-recourse mortgages, which limit liability of borrowers, starting with policy institutions and expanding to commercial banks. - Finally, the government is working to enact the Financial Consumer Protection Act to protect consumers in every stage of their consumption process, which is expected 11


to bring consistency in policies designed to protect financial consumers and make remedies more effective.

Strategy

Making a Vibrant and Fair Economy

To create an advanced structure for the financial industry Financial Services Commission

▪ Does a system of checks and balances in financial markets help raise consumer benefits? “ Lower entry barriers into financial services industry, but strengthen ex-post enforcement” ­­ - Transforming the financial services industry, now centered on financial businesses and suppliers, into an innovative and consumer-oriented one requires improvements in the current financial policies, supervisory system, governance structure within financial companies and financial infrastructure. - To this end, the government plans to ease ex-ante regulations and strengthen ex-post enforcement to make entry into the financial services industry easier while making financial companies more accountable for their business practices. The oversight and supervisory system will be streamlined with a focus on consumer protection, and a system for fair policy-making by the financial authorities will also be established. - Eligibility of large shareholders will be more rigorously screened to promote transparency in ownership and business management of financial companies. - Finally, the government will build an infrastructure for financial innovation through improvements in legislative and regulatory frameworks to prepare for the Fourth Industrial Revolution and to create new growth opportunities. For this purpose, the government enacted the Special Act on Financial Innovation Support. Also, it has been operating the Regulatory Sandbox and pursuing a revision to the Credit Information Use and Protection Act for systematic and safe use of credit information.

Question

What is a fair economy where big conglomerates and SMEs can achieve a win-win? “ Counter unfair transactions in the market and bring more oversight to promote fair transactions”

• Korea’s economic growth was centered largely on a few business conglomerates. Expeditious expansion of control by conglomerate owners and their families and the concentration of economic power on conglomerates upset the balance between large enterprises and SMEs, and weakened the competitiveness of the latter. The government is committed to leveling the playing field to revitalize the economy for a new leap. Thus, the establishment of a fair economy is a key economic strategy of the government. • The government is countering unfair transactions that businesses make using their dominant positions in the market. It is strengthening oversight of the market to promote fair transactions and a fair market economy. More effective remedies will enable citizens to seek redress against unfair practices by businesses that have an upper hand in information and financing capability. • A fair market order is a condition for ensuring fair competition and win-win cooperation between conglomerate businesses and SMEs. The government will work with SMEs, which form a pillar of the economy, and help them drive economic growth and employment.

National Policy Tasks What is the government doing to achieve this? ▪ To establish a fair market order -Fair Trade Commission ▪ To prevent abuse of power by the families that control the conglomerates and improve their

ownership and governance -Fair Trade Commission

▪ To enhance monitoring capabilities for fair trade and strengthen consumer protection -Fair Trade Commission

▪ To promote the social economy -Fair Trade Commission ▪ To promote mutually beneficial cooperation between the SMEs and large-sized enterprises for

their Mutual Prosperity -Ministry of SMEs and Start-ups

12

13


to bring consistency in policies designed to protect financial consumers and make remedies more effective.

Strategy

Making a Vibrant and Fair Economy

To create an advanced structure for the financial industry Financial Services Commission

▪ Does a system of checks and balances in financial markets help raise consumer benefits? “ Lower entry barriers into financial services industry, but strengthen ex-post enforcement” ­­ - Transforming the financial services industry, now centered on financial businesses and suppliers, into an innovative and consumer-oriented one requires improvements in the current financial policies, supervisory system, governance structure within financial companies and financial infrastructure. - To this end, the government plans to ease ex-ante regulations and strengthen ex-post enforcement to make entry into the financial services industry easier while making financial companies more accountable for their business practices. The oversight and supervisory system will be streamlined with a focus on consumer protection, and a system for fair policy-making by the financial authorities will also be established. - Eligibility of large shareholders will be more rigorously screened to promote transparency in ownership and business management of financial companies. - Finally, the government will build an infrastructure for financial innovation through improvements in legislative and regulatory frameworks to prepare for the Fourth Industrial Revolution and to create new growth opportunities. For this purpose, the government enacted the Special Act on Financial Innovation Support. Also, it has been operating the Regulatory Sandbox and pursuing a revision to the Credit Information Use and Protection Act for systematic and safe use of credit information.

Question

What is a fair economy where big conglomerates and SMEs can achieve a win-win? “ Counter unfair transactions in the market and bring more oversight to promote fair transactions”

• Korea’s economic growth was centered largely on a few business conglomerates. Expeditious expansion of control by conglomerate owners and their families and the concentration of economic power on conglomerates upset the balance between large enterprises and SMEs, and weakened the competitiveness of the latter. The government is committed to leveling the playing field to revitalize the economy for a new leap. Thus, the establishment of a fair economy is a key economic strategy of the government. • The government is countering unfair transactions that businesses make using their dominant positions in the market. It is strengthening oversight of the market to promote fair transactions and a fair market economy. More effective remedies will enable citizens to seek redress against unfair practices by businesses that have an upper hand in information and financing capability. • A fair market order is a condition for ensuring fair competition and win-win cooperation between conglomerate businesses and SMEs. The government will work with SMEs, which form a pillar of the economy, and help them drive economic growth and employment.

National Policy Tasks What is the government doing to achieve this? ▪ To establish a fair market order -Fair Trade Commission ▪ To prevent abuse of power by the families that control the conglomerates and improve their

ownership and governance -Fair Trade Commission

▪ To enhance monitoring capabilities for fair trade and strengthen consumer protection -Fair Trade Commission

▪ To promote the social economy -Fair Trade Commission ▪ To promote mutually beneficial cooperation between the SMEs and large-sized enterprises for

their Mutual Prosperity -Ministry of SMEs and Start-ups

12

13


To establish a fair market order

To prevent abuse of power by the families that control the conglomerates

Fair Trade Commission

and improve their ownership and governance structures

▪ What are the government policies to establish a sound capital market? “ Enforce stronger penalties on conducts that disrupt the capital markets and establish the Euljiro Conference comprising political parties, government, and the Presidential Office” ­­ ­­- T he government will address the structural imbalance of power between large conglomerates and SMEs. It will correct unfair business practices of large conglomerates to level the playing field for SMEs and small business owners. It is restoring order in the capital market in order to protect investors, raise transparency in corporate accounting, and create a vibrant capital market. The sound development of the capital market will energize the economy and promote balanced growth. -­­ To address power relations issues at the state level, the government established the Euljiro Conference, comprising political parties, government, and the Presidential Office. -­­ To punish abuse of power and better protect the abused, the government is making institutional improvements to eradicate unfair practices in relation to subcontracting, franchises, distribution, and dealership, while reinforcing law enforcement. Measures are taken to prevent unfair subcontracting practices, such as technology appropriation, undue unit price reduction, and forced exclusive transactions. More sanctions will be imposed against retaliatory actions and greater punitive damages sought. Franchise operators associations are now able to report unfair practices, and franchises’ right to collective bargaining has been codified. Suppliers will be able to request adjustment of unit prices when labor costs go up due to increases in the minimum wage. -­­ Stricter penalties will be imposed for conducts that disrupt the capital markets. In 2018, the government disclosed a greater number of criminal punishment resolutions taken by the Securities and Futures Commission. It also increased statutory punishment of stock price manipulation crimes while extending the statute of limitations on damages. Manipulation of stock prices is also more severely punished. Strict discipline will be imposed on corporate accounting. The auditor designation system has been reformed to guarantee the independence and objectivity of accounting firms. The cycle of audit reviews by the Financial Supervisory Service will be reduced from 25 years to ten years, and greater sanctions will be imposed for accounting fraud and audit failures.

14

Fair Trade Commission

▪ How can a culture of transparent and sound business management be established? “ Introduce multiple derivative actions, make electronic voting and cumulative voting mandatory, and increase scope of fraud control” ­­ ­­- To rein in corporate abuse by owners and families of big conglomerates, the government will strengthen minority shareholder rights and board independence. In order to create a sound and fair society, it will check expeditious increase of control, undue wealth transfers, and activities that do harm to good competition. -­­ To prevent abuse of power by owners and families of big conglomerates, the government will develop multiple derivative actions and make electronic voting and cumulative voting mandatory. The law will be strictly enforced on economic crimes like embezzlement and business malpractices, and pardons applications will be more rigorously reviewed. ­­- The government has taken several measures to prevent businesses from expeditiously expanding control. These include raising holding companiesʼ mandatory ownership of stocks of subsidiaries and sub-subsidiaries, limiting the voting rights related to crossshareholdings, and increased disclosure of overseas subsidiaries. -­­ The scope of defraudation was widened to eradicate fraud for personal gain by owners and families of big conglomerates. -­­ Based on separation of banking and commerce, the government further limits the voting rights of financial and insurance companies in relation to their subsidiaries. It also established an integrated supervisory system for financial groups.

15


To establish a fair market order

To prevent abuse of power by the families that control the conglomerates

Fair Trade Commission

and improve their ownership and governance structures

▪ What are the government policies to establish a sound capital market? “ Enforce stronger penalties on conducts that disrupt the capital markets and establish the Euljiro Conference comprising political parties, government, and the Presidential Office” ­­ ­­- T he government will address the structural imbalance of power between large conglomerates and SMEs. It will correct unfair business practices of large conglomerates to level the playing field for SMEs and small business owners. It is restoring order in the capital market in order to protect investors, raise transparency in corporate accounting, and create a vibrant capital market. The sound development of the capital market will energize the economy and promote balanced growth. -­­ To address power relations issues at the state level, the government established the Euljiro Conference, comprising political parties, government, and the Presidential Office. -­­ To punish abuse of power and better protect the abused, the government is making institutional improvements to eradicate unfair practices in relation to subcontracting, franchises, distribution, and dealership, while reinforcing law enforcement. Measures are taken to prevent unfair subcontracting practices, such as technology appropriation, undue unit price reduction, and forced exclusive transactions. More sanctions will be imposed against retaliatory actions and greater punitive damages sought. Franchise operators associations are now able to report unfair practices, and franchises’ right to collective bargaining has been codified. Suppliers will be able to request adjustment of unit prices when labor costs go up due to increases in the minimum wage. -­­ Stricter penalties will be imposed for conducts that disrupt the capital markets. In 2018, the government disclosed a greater number of criminal punishment resolutions taken by the Securities and Futures Commission. It also increased statutory punishment of stock price manipulation crimes while extending the statute of limitations on damages. Manipulation of stock prices is also more severely punished. Strict discipline will be imposed on corporate accounting. The auditor designation system has been reformed to guarantee the independence and objectivity of accounting firms. The cycle of audit reviews by the Financial Supervisory Service will be reduced from 25 years to ten years, and greater sanctions will be imposed for accounting fraud and audit failures.

14

Fair Trade Commission

▪ How can a culture of transparent and sound business management be established? “ Introduce multiple derivative actions, make electronic voting and cumulative voting mandatory, and increase scope of fraud control” ­­ ­­- To rein in corporate abuse by owners and families of big conglomerates, the government will strengthen minority shareholder rights and board independence. In order to create a sound and fair society, it will check expeditious increase of control, undue wealth transfers, and activities that do harm to good competition. -­­ To prevent abuse of power by owners and families of big conglomerates, the government will develop multiple derivative actions and make electronic voting and cumulative voting mandatory. The law will be strictly enforced on economic crimes like embezzlement and business malpractices, and pardons applications will be more rigorously reviewed. ­­- The government has taken several measures to prevent businesses from expeditiously expanding control. These include raising holding companiesʼ mandatory ownership of stocks of subsidiaries and sub-subsidiaries, limiting the voting rights related to crossshareholdings, and increased disclosure of overseas subsidiaries. -­­ The scope of defraudation was widened to eradicate fraud for personal gain by owners and families of big conglomerates. -­­ Based on separation of banking and commerce, the government further limits the voting rights of financial and insurance companies in relation to their subsidiaries. It also established an integrated supervisory system for financial groups.

15


To enhance monitoring capabilities for fair trade and strengthen

To promote the social economy

consumer protection Fair Trade Commission

Ministry of Economy and Finance

▪ How can a consumer-centered fair trade system be established? “ Enable collaborated monitoring between the Fair Trade Commission and local governments, and introduce consumer collective damages actions” -­­ A balanced system for enforcement of the Fair Trade Act will be established, and consumer grievances will be addressed through increased collaborated oversight between the Fair Trade Commission and local governments. Quick and strict law enforcement will deter unfair trading practices and effectively help consumers get redress for their small claims. -­­ To efficiently eradicate unfair practices by large businesses, the government will work on the Fair Trade Act to reflect institutional arrangements and introduce or complement various administrative, criminal, and civil enforcement measures. This law provides for the abolition of the Fair Trade Commissionʼs exclusive right to file a criminal complaint against hardcore cartels that require strict criminal enforcement, and for victims to seek injunction.

­­- To help local small and medium business owners get quick remedies, the government is establishing a channel of law enforcement consultations between the Fair Trade Commission and local governments. In addition to the Korea Fair Trade Mediation Agency, the channel comprises dispute mediation councils in cities and provinces as well as fair trade support centers in metropolitan cities and provinces to hear and help report grievances. -­­ The government will introduce collective damages actions, which would allow a settlement obtained by a group of people that initiated an action to benefit all other victims. This would enhance the effectiveness of consumer remedies and induce greater accountability in businesses. The government is also securing the necessary funds to sustain support for consumer remedies and others initiatives that promote consumer rights.

16

▪ Will the social economy grow into a model for civil economy? “ Enact the Framework Act on Social Economy and build an integrated system to support social economy policy” ­­ ­­- The government addresses various social issues such as job creation, social service innovation and urban regeneration by promoting the social economy, which is for cooperative and inclusive growth. Establishing an ecosystem for the social economy will serve as a model for our civil economy. -­­ The government enacts the Framework Act on Social Economy and establishes integrated systems for the social economy to effectively implement the policies for the social economy. -­­ To establish an ecosystem for the social economy, the government is working on a sustainable institutional foundation for better access to finance, active public procurement, and human resources training. The Social Value and Solidarity Fund and Social Investment Fund were instituted in 2018, and credit guarantee review standards and limits were eased to reflect the characteristics of the social economy in the financial system. Procurement systems that reflect social values were applied in 2017, and talented persons who can lead the social economy are nurtured based on a personnel development roadmap. The government encourages companies to utilize underused state and public facilities to realize the sharing economy. -­­ The government encourages businesses to work in the urban regeneration domain and helps revitalize local communities by bringing more jobs through urban regeneration projects.

17


To enhance monitoring capabilities for fair trade and strengthen

To promote the social economy

consumer protection Fair Trade Commission

Ministry of Economy and Finance

▪ How can a consumer-centered fair trade system be established? “ Enable collaborated monitoring between the Fair Trade Commission and local governments, and introduce consumer collective damages actions” -­­ A balanced system for enforcement of the Fair Trade Act will be established, and consumer grievances will be addressed through increased collaborated oversight between the Fair Trade Commission and local governments. Quick and strict law enforcement will deter unfair trading practices and effectively help consumers get redress for their small claims. -­­ To efficiently eradicate unfair practices by large businesses, the government will work on the Fair Trade Act to reflect institutional arrangements and introduce or complement various administrative, criminal, and civil enforcement measures. This law provides for the abolition of the Fair Trade Commissionʼs exclusive right to file a criminal complaint against hardcore cartels that require strict criminal enforcement, and for victims to seek injunction.

­­- To help local small and medium business owners get quick remedies, the government is establishing a channel of law enforcement consultations between the Fair Trade Commission and local governments. In addition to the Korea Fair Trade Mediation Agency, the channel comprises dispute mediation councils in cities and provinces as well as fair trade support centers in metropolitan cities and provinces to hear and help report grievances. -­­ The government will introduce collective damages actions, which would allow a settlement obtained by a group of people that initiated an action to benefit all other victims. This would enhance the effectiveness of consumer remedies and induce greater accountability in businesses. The government is also securing the necessary funds to sustain support for consumer remedies and others initiatives that promote consumer rights.

16

▪ Will the social economy grow into a model for civil economy? “ Enact the Framework Act on Social Economy and build an integrated system to support social economy policy” ­­ ­­- The government addresses various social issues such as job creation, social service innovation and urban regeneration by promoting the social economy, which is for cooperative and inclusive growth. Establishing an ecosystem for the social economy will serve as a model for our civil economy. -­­ The government enacts the Framework Act on Social Economy and establishes integrated systems for the social economy to effectively implement the policies for the social economy. -­­ To establish an ecosystem for the social economy, the government is working on a sustainable institutional foundation for better access to finance, active public procurement, and human resources training. The Social Value and Solidarity Fund and Social Investment Fund were instituted in 2018, and credit guarantee review standards and limits were eased to reflect the characteristics of the social economy in the financial system. Procurement systems that reflect social values were applied in 2017, and talented persons who can lead the social economy are nurtured based on a personnel development roadmap. The government encourages companies to utilize underused state and public facilities to realize the sharing economy. -­­ The government encourages businesses to work in the urban regeneration domain and helps revitalize local communities by bringing more jobs through urban regeneration projects.

17


To promote mutually beneficial cooperation between the SMEs and large-sized enterprises for their Mutual Prosperity Ministry of SMEs and Startups

▪ How can the playing field be leveled to foster fair competition and growth between SMEs and big businesses? “ Develop and expand Big Business-SME Cooperation Profit Sharing Model” -­­ The government designates types of business suitable for livelihood to protect SMEs and micro enterprises -­­ The Special Act on the Designation of Types of Business Suitable for livelihood of micro enterprises, which was enacted in 2018, allows for categories of business that have a significant impact on peopleʼs livelihood to be designated as types of business suitable for livelihood. The government is working to make this policy effective through measures to help such businesses become more competitive. -­­ Since 2018, the government has enforced the same business-hour limits that apply to large-scale retail chains on shopping malls. It is also working to amend the Distribution Industry Development Act to increase restrictions of large-scale store locations and protect local stores and small businesses. -­­ The bargaining power of SME associations will be strengthened. The government will set up unfair transactions reporting centers in SME associations. The number of reporting centers will be increased by phase, with 40 more added in 2019. ­­- The Cooperation Profit Sharing model, which was developed to ensure that the profits of large corporations can be shared with SMEs, will be expanded to 200 companies by 2022.

18

Strategy

Preparing for the Fourth Industrial Revolution by Supporting the Advancement of Science and Technology Question

What is being done to prepare for the Fourth Industrial Revolution? “ Establish the Presidential Fourth Industrial Revolution Committee and create a dynamic ecosystem for startups and venture”

• The government is developing super-intelligence and hyper-connectivity technologies (AI, IoT, 5G, etc.) that will trigger the Fourth Industrial Revolution. It is creating new jobs and growth engines to develop key technologies and foster new industries. It is taking a holistic approach towards the Fourth Industrial Revolution, so that intelligence and informatization can be used in addressing immediate social issues such as ageing and environmental pollution. • The Presidential Fourth Industrial Revolution Committee serves as the control tower for addressing the Fourth Industrial Revolution. It identifies key innovation tasks for technology, industry, society, and the public sector. Korea is the world’s first to commercialize 5G technology and implement an exclusive network for Internet of Things (IoT). The government is securing and commercializing AI and other key technologies, and laying the basis for a super-intelligent, hyper-connected society through data-sharing and platforms. • To foster creative talent who can lead the Fourth Industrial Revolution, the government is expanding software and fusion education, and laying the basis for life-long learning. It is also supporting business start-ups through public markets and regulatory innovation. Institutional improvements in finance and M&A will help shape a dynamic ecosystem for start-ups and venture businesses.

19


To promote mutually beneficial cooperation between the SMEs and large-sized enterprises for their Mutual Prosperity Ministry of SMEs and Startups

▪ How can the playing field be leveled to foster fair competition and growth between SMEs and big businesses? “ Develop and expand Big Business-SME Cooperation Profit Sharing Model” -­­ The government designates types of business suitable for livelihood to protect SMEs and micro enterprises -­­ The Special Act on the Designation of Types of Business Suitable for livelihood of micro enterprises, which was enacted in 2018, allows for categories of business that have a significant impact on peopleʼs livelihood to be designated as types of business suitable for livelihood. The government is working to make this policy effective through measures to help such businesses become more competitive. -­­ Since 2018, the government has enforced the same business-hour limits that apply to large-scale retail chains on shopping malls. It is also working to amend the Distribution Industry Development Act to increase restrictions of large-scale store locations and protect local stores and small businesses. -­­ The bargaining power of SME associations will be strengthened. The government will set up unfair transactions reporting centers in SME associations. The number of reporting centers will be increased by phase, with 40 more added in 2019. ­­- The Cooperation Profit Sharing model, which was developed to ensure that the profits of large corporations can be shared with SMEs, will be expanded to 200 companies by 2022.

18

Strategy

Preparing for the Fourth Industrial Revolution by Supporting the Advancement of Science and Technology Question

What is being done to prepare for the Fourth Industrial Revolution? “ Establish the Presidential Fourth Industrial Revolution Committee and create a dynamic ecosystem for startups and venture”

• The government is developing super-intelligence and hyper-connectivity technologies (AI, IoT, 5G, etc.) that will trigger the Fourth Industrial Revolution. It is creating new jobs and growth engines to develop key technologies and foster new industries. It is taking a holistic approach towards the Fourth Industrial Revolution, so that intelligence and informatization can be used in addressing immediate social issues such as ageing and environmental pollution. • The Presidential Fourth Industrial Revolution Committee serves as the control tower for addressing the Fourth Industrial Revolution. It identifies key innovation tasks for technology, industry, society, and the public sector. Korea is the world’s first to commercialize 5G technology and implement an exclusive network for Internet of Things (IoT). The government is securing and commercializing AI and other key technologies, and laying the basis for a super-intelligent, hyper-connected society through data-sharing and platforms. • To foster creative talent who can lead the Fourth Industrial Revolution, the government is expanding software and fusion education, and laying the basis for life-long learning. It is also supporting business start-ups through public markets and regulatory innovation. Institutional improvements in finance and M&A will help shape a dynamic ecosystem for start-ups and venture businesses.

19


government is fostering local talent and building technological competence to establish Korea as the finest software manufacturing country and the ideal location for software businesses.

National Policy Tasks What is the government doing to achieve this? ▪ To strengthen the software and ICT sectors to build the foundation to lead the Fourth Industrial

Revolution -Ministry of Science and ICT

-­­ It is establishing an AI-based system to respond to cyber security threats and formulating plans to close the new information gap. A telecom disputes settlement system is introduced for enhanced user protection.

▪ To identify and nurture new future-oriented industries to create high added value -Ministry of Trade,

Industry and Energy, Ministry of Science and ICT, Ministry of Land, Infrastructure and Transport, Ministry of Health and Welfare

▪ To create an innovative ecosystem with more autonomy and responsibility for science and

technology -Ministry of Science and ICT

▪ To expand future science and technology capacity by supporting young scientists and basic

-­­ A national Smart City pilot program is created as a leading innovative smart city model using urban development know-how and ICT technologies.

research -Ministry of Science and ICT ▪ To identify eco-friendly future energies and foster new energy businesses -Ministry of Trade, Industry and Energy

▪ To boost industrial vitality by raising the competitiveness of core industries

-­­ Local governments, businesses, and universities are partnering to design, establish, and operate smart technologies and services to address urban issues and improve the quality of life in existing cities. Also, various city-wide information (traffic, disaster, security, welfare, etc.) will be integrated to form a common picture, raising efficiency in urban management and ensuring citizen’s safety.

-Ministry of Trade, Industry and Energy

To strengthen the software and ICT sectors to build the foundation to lead

-­­ U sing the advanced smart technologies of the public and private sector, the government will increase overseas exchanges and cooperation to contribute to the global proliferation of smart technologies.

the Fourth Industrial Revolution Ministry of Science and ICT ▪ How does the government propel the nation toward becoming a software power? “Create 260,000 software jobs and realize early establishment of 5G network”

To identify and nurture new future-oriented industries to create high

­­ -­­ The government is building the infrastructure for the Fourth Industrial Revolution, making regulatory improvements, and securing key technologies. It is fostering software businesses to drive the growth of the economy and creating new growth engines. These efforts will help bring 260,000 more jobs in the private sector. -­­ The Presidential Fourth Industrial Revolution Committee instructs all government ministries to establish plans for the Fourth Industrial Revolution. -­­ The government is making concentrated investment in R&D of key intelligence and information technologies and fostering talent. It is making regulatory improvements to facilitate market entry for new ICT technologies and services. -­­ It is building the infrastructure for 5G and IoT network, and identifying ICT fusion services, such as open data, data distribution facilitation, smart homes, and precision medicine. The government commercialized 10 Giga Internet service in 2018 and worked for early commercialization of 5G services in 2019. ­­- I nnovation is made in the legal system and public market for software. The 20

added value Ministry of Trade, Industry and Energy, Ministry of Science and ICT, Ministry of Land, Infrastructure and Transport, Ministry of Health and Welfare

▪ How is the government supporting the nurture of future new industries? “ Provide full support for autonomous cars, electric cars, hydrogen-powered cars, stateof-the-art materials, and parts” ­­ -­­ A significantly greater number of eco-friendly electric cars and hydrogen-powered cars will be supplied. The Government is establishing an automobile-ICT fusion platform to support the development of smart cars and foster an industry for autonomous cars. It is also expanding the charging-station infrastructure and establishing safety standards for autonomous cars and hydrogen-powered cars. -­­ Under a strategy of fusion and convergence, concentrated support will be extended for the development of new, state-of-the-art materials and parts in the areas of semi-conductors, displays, and the carbon industry to address the Fourth Industrial Revolution. The Government is supporting R&D, certification, and infrastructure development to foster state-of-the-art technology industries such as intelligence 21


government is fostering local talent and building technological competence to establish Korea as the finest software manufacturing country and the ideal location for software businesses.

National Policy Tasks What is the government doing to achieve this? ▪ To strengthen the software and ICT sectors to build the foundation to lead the Fourth Industrial

Revolution -Ministry of Science and ICT

-­­ It is establishing an AI-based system to respond to cyber security threats and formulating plans to close the new information gap. A telecom disputes settlement system is introduced for enhanced user protection.

▪ To identify and nurture new future-oriented industries to create high added value -Ministry of Trade,

Industry and Energy, Ministry of Science and ICT, Ministry of Land, Infrastructure and Transport, Ministry of Health and Welfare

▪ To create an innovative ecosystem with more autonomy and responsibility for science and

technology -Ministry of Science and ICT

▪ To expand future science and technology capacity by supporting young scientists and basic

-­­ A national Smart City pilot program is created as a leading innovative smart city model using urban development know-how and ICT technologies.

research -Ministry of Science and ICT ▪ To identify eco-friendly future energies and foster new energy businesses -Ministry of Trade, Industry and Energy

▪ To boost industrial vitality by raising the competitiveness of core industries

-­­ Local governments, businesses, and universities are partnering to design, establish, and operate smart technologies and services to address urban issues and improve the quality of life in existing cities. Also, various city-wide information (traffic, disaster, security, welfare, etc.) will be integrated to form a common picture, raising efficiency in urban management and ensuring citizen’s safety.

-Ministry of Trade, Industry and Energy

To strengthen the software and ICT sectors to build the foundation to lead

-­­ U sing the advanced smart technologies of the public and private sector, the government will increase overseas exchanges and cooperation to contribute to the global proliferation of smart technologies.

the Fourth Industrial Revolution Ministry of Science and ICT ▪ How does the government propel the nation toward becoming a software power? “Create 260,000 software jobs and realize early establishment of 5G network”

To identify and nurture new future-oriented industries to create high

­­ -­­ The government is building the infrastructure for the Fourth Industrial Revolution, making regulatory improvements, and securing key technologies. It is fostering software businesses to drive the growth of the economy and creating new growth engines. These efforts will help bring 260,000 more jobs in the private sector. -­­ The Presidential Fourth Industrial Revolution Committee instructs all government ministries to establish plans for the Fourth Industrial Revolution. -­­ The government is making concentrated investment in R&D of key intelligence and information technologies and fostering talent. It is making regulatory improvements to facilitate market entry for new ICT technologies and services. -­­ It is building the infrastructure for 5G and IoT network, and identifying ICT fusion services, such as open data, data distribution facilitation, smart homes, and precision medicine. The government commercialized 10 Giga Internet service in 2018 and worked for early commercialization of 5G services in 2019. ­­- I nnovation is made in the legal system and public market for software. The 20

added value Ministry of Trade, Industry and Energy, Ministry of Science and ICT, Ministry of Land, Infrastructure and Transport, Ministry of Health and Welfare

▪ How is the government supporting the nurture of future new industries? “ Provide full support for autonomous cars, electric cars, hydrogen-powered cars, stateof-the-art materials, and parts” ­­ -­­ A significantly greater number of eco-friendly electric cars and hydrogen-powered cars will be supplied. The Government is establishing an automobile-ICT fusion platform to support the development of smart cars and foster an industry for autonomous cars. It is also expanding the charging-station infrastructure and establishing safety standards for autonomous cars and hydrogen-powered cars. -­­ Under a strategy of fusion and convergence, concentrated support will be extended for the development of new, state-of-the-art materials and parts in the areas of semi-conductors, displays, and the carbon industry to address the Fourth Industrial Revolution. The Government is supporting R&D, certification, and infrastructure development to foster state-of-the-art technology industries such as intelligence 21


robots, 3D printing, AR·VR, IoT home appliances, smart ships, nanotechnology and biotechnology, and aerospace.

fields is being integrated and led by the ministry overseeing S&T, while other ministries are charged with the R&D of other pertinent industries (businesses) based on demand.

-­­ The Government is helping to build an eco-system for the medical device industry— pharmaceuticals, biotechnology, and medical microrobots—by funding the development of key technologies, the nurture of talent, commercialization, and overseas expansion.

-­­ All R&D regulations, systems, and forms have been synchronized. The GovernmentAssisted Integrated R&D Administration System(GAIA) is fully operational from 2019. -­­ The government’s R&D information system will be enhanced for increased public access to information related to programs, personnel, budget, tasks, and performance, but excluding personal information and supplementary tasks. The government is also funding R&D projects to find solutions to livelihood issues based on public engagement.

-­­ The Government is supporting the early commercialization of level 3 autonomous cars by 2020, with a test bed for self-driving cars, and connected services for cooperative automated driving as well as safety standards and insurance.

-­­ The government will increase exchanges with Korean expats abroad and North Korean science and technology experts. The government is striving to raise the nation’s standing in today’s global society through scientific research that can help resolve universal issues facing humanity.

-­­ The government is using a roadmap to support the development of infrastructure for the drone industry. It is also working towards institutional improvements, technological development, and creation of a fusion ecosystem. -­­ The government is facilitating a fast-track certification program. It is innovating the standards and certification system for new industries by running TBT response support centers in every government ministry and introducing fast-track standardization procedures.

To create an innovative ecosystem with more autonomy and

To expand future science and technology capacity by supporting young scientists and basic research Ministry of Science and ICT ▪ How can an environment be created where young scientists can focus on research? “ D ouble funding for basic research and ensure young scientists are properly compensated”

responsibility for science and technology Ministry of Science and ICT ▪ How can the research ecosystem be transformed for innovation in science and technology? “ Increase R&D and budget authority of ministry in charge of S&T”

­­ -­­ The government will double the amount of funding for scientist-led basic research, and give more autonomy and freedom to researchers. A more favorable environment will be created for young S&T researchers to concentrate on their work.

­­ ­­- The control tower for science and technology will be a more important role. Following a dynamic transformation, the R&D system will be led by autonomous and responsible researchers for increased efficiency of national R&D programs. This will also build an ecosystem for R&D whereby players can develop win-win partnerships.

­­- Considerable funding will go into “first innovation labs” and “lifetime basic research” to enable competent researchers to concentrate on research continuously. Also, certain research topics may be applied a differentiated evaluation system so that more consideration can be given to the outcomes and process of research activities.

­­- In 2018, national S&T technology policy advisory and coordinating bodies were integrated, and the functions of the ministry in charge of S&T were strengthened. The functions of the Presidential Deliberation Council on S&T Technology and of the S&T Technology Strategy Council were transferred to the Presidential Advisory Council on S&T Technology, the launch of which was pursued based on extensive opinions from the S&T community. The ministry in charge of R&D will have more authority on R&D budgets, and the link between policy, budget, and evaluation is also being reinforced. R&D in basic

-­­ The overall research environment will be improved through labor contracts, adequate wages, and research outcome compensation criteria. To ensure that young scientists and engineers are properly compensated, the government will ensure that postdoctoral researchers are protected by labor contracts and benefit from the four major social security programs. The government will offer pensions to young scientists and technicians who join the R&D department of SMEs.

22

23


robots, 3D printing, AR·VR, IoT home appliances, smart ships, nanotechnology and biotechnology, and aerospace.

fields is being integrated and led by the ministry overseeing S&T, while other ministries are charged with the R&D of other pertinent industries (businesses) based on demand.

-­­ The Government is helping to build an eco-system for the medical device industry— pharmaceuticals, biotechnology, and medical microrobots—by funding the development of key technologies, the nurture of talent, commercialization, and overseas expansion.

-­­ All R&D regulations, systems, and forms have been synchronized. The GovernmentAssisted Integrated R&D Administration System(GAIA) is fully operational from 2019. -­­ The government’s R&D information system will be enhanced for increased public access to information related to programs, personnel, budget, tasks, and performance, but excluding personal information and supplementary tasks. The government is also funding R&D projects to find solutions to livelihood issues based on public engagement.

-­­ The Government is supporting the early commercialization of level 3 autonomous cars by 2020, with a test bed for self-driving cars, and connected services for cooperative automated driving as well as safety standards and insurance.

-­­ The government will increase exchanges with Korean expats abroad and North Korean science and technology experts. The government is striving to raise the nation’s standing in today’s global society through scientific research that can help resolve universal issues facing humanity.

-­­ The government is using a roadmap to support the development of infrastructure for the drone industry. It is also working towards institutional improvements, technological development, and creation of a fusion ecosystem. -­­ The government is facilitating a fast-track certification program. It is innovating the standards and certification system for new industries by running TBT response support centers in every government ministry and introducing fast-track standardization procedures.

To create an innovative ecosystem with more autonomy and

To expand future science and technology capacity by supporting young scientists and basic research Ministry of Science and ICT ▪ How can an environment be created where young scientists can focus on research? “ D ouble funding for basic research and ensure young scientists are properly compensated”

responsibility for science and technology Ministry of Science and ICT ▪ How can the research ecosystem be transformed for innovation in science and technology? “ Increase R&D and budget authority of ministry in charge of S&T”

­­ -­­ The government will double the amount of funding for scientist-led basic research, and give more autonomy and freedom to researchers. A more favorable environment will be created for young S&T researchers to concentrate on their work.

­­ ­­- The control tower for science and technology will be a more important role. Following a dynamic transformation, the R&D system will be led by autonomous and responsible researchers for increased efficiency of national R&D programs. This will also build an ecosystem for R&D whereby players can develop win-win partnerships.

­­- Considerable funding will go into “first innovation labs” and “lifetime basic research” to enable competent researchers to concentrate on research continuously. Also, certain research topics may be applied a differentiated evaluation system so that more consideration can be given to the outcomes and process of research activities.

­­- In 2018, national S&T technology policy advisory and coordinating bodies were integrated, and the functions of the ministry in charge of S&T were strengthened. The functions of the Presidential Deliberation Council on S&T Technology and of the S&T Technology Strategy Council were transferred to the Presidential Advisory Council on S&T Technology, the launch of which was pursued based on extensive opinions from the S&T community. The ministry in charge of R&D will have more authority on R&D budgets, and the link between policy, budget, and evaluation is also being reinforced. R&D in basic

-­­ The overall research environment will be improved through labor contracts, adequate wages, and research outcome compensation criteria. To ensure that young scientists and engineers are properly compensated, the government will ensure that postdoctoral researchers are protected by labor contracts and benefit from the four major social security programs. The government will offer pensions to young scientists and technicians who join the R&D department of SMEs.

22

23


-­­ Young scientists and technicians will have the opportunity to take part in practical R&D projects to increase their R&D competence. More S&T jobs will become available as a result of a vibrant research industry. Support will be extended to unemployed masters and doctors who participate in corporate research projects, while a projectbased tenure system will be introduced. Women scientists and technicians who have taken a career break will be matched with industry, academia, or research organizations (in corporations, colleges, graduate schools, and research institutes), so that they can continue their careers.

energy map; and promote green remodeling of existing buildings. -­­ More people will benefit from energy vouchers. Households whose members suffer from a rare disease will be added to the list of recipients, enabling the social safety net to reach a greater number of the underprivileged.

To boost industrial vitality by raising the competitiveness of core industries Ministry of Trade, Industry and Energy

To identify eco-friendly future energies and foster new energy businesses Ministry of Trade, Industry and Energy

▪ Are we making and using cleaner energy? “ Increase the share of renewable energy generation to 20% by 2030 and increase energy welfare for low- income household” ­­ ­­- By 2030, the share of power generated by renewable energy sources will be increased to 20 percent. The economy will move away from a structure of high energy consumption to an eco-friendly, high efficiency structure. As a result, ordinary citizens will see enjoy enhanced energy welfare. ­­- P articipation in renewable energy industries will be made more accessible for small business owners. The conditions for corporate investment will also be improved. As a result, the share of renewable energy generation will reach 20% of all power generation by 2030. Also, the government will purchase electricity at fixed prices to ensure a stable income for small businesses. It will also introduce a system of planned land location for wind power. Spacing regulations will also be eased. By 2030, the ratio of renewable energy under the renewable portfolio standard (RPS) will also be raised to 28%. ­­- The Government will build an infrastructure for eco-friendly smart energy, and create new businesses based on the IoE (International Organization of Employers). By 2020, all public organizations will be required to have an energy storage system (ESS), and intelligent measuring systems will be installed nationwide. -­­ Demand for energy in key areas—homes, commerce, transportation, the public sector, and buildings—will be managed with increased rigor. Transition to a lowcarbon, high efficiency structure will be achieved through the use of under-utilized thermal energy. To this end, the Government will introduce the minimum energy performance standard for major industrial applications; launch the zero-energy building certification program in the public sector from 2020; build a national thermal 24

▪ What can be done to restore vitality in the economy? “ Institutionally support smartification, fusion, convergence, and the development of services in key industries” ­­ ­­- T he Government will preemptively reorganize key industries and increase overall competitiveness through smartification, fusion, convergence, and the development of services. It will assist efforts by SMEs and mid-market firms to export overseas and help to bring 50,000 jobs in foreign-invested companies and 1,000 jobs in u-turn companies. -­­ To cope with the Fourth Industrial Revolution, the government established the Manufacturing Industry Renaissance Strategy in 2017. The strategy aims to have 20,000 smart factories in operation by 2022 by introducing the smart factory certification program in 2018 and offering increased financial support. -­­ Every year, the government assists 50 companies to reorganize their businesses. In an effort to encourage preemptive industry-wide restructuring, more incentives were instituted in 2019 for companies that undertake business reorganization. ­­- T he export structure will be revamped. More businesses can benefit from tailored export support under the Korean-Made Strategy, which develops industry and trade policies in line with the nation’s brand strategy. The Government will support overseas marketing activities using the Korean Wave, select the top 100 companies producing consumer goods, increase support for SMEs and mid-market firms to export through trading companies, and offer preferential trade insurance for SMEs and mid-market firms. ­­- The government is revisiting its program to attract new industries, foreign-invested companies and u-turn companies with high job-creation potential.

25


-­­ Young scientists and technicians will have the opportunity to take part in practical R&D projects to increase their R&D competence. More S&T jobs will become available as a result of a vibrant research industry. Support will be extended to unemployed masters and doctors who participate in corporate research projects, while a projectbased tenure system will be introduced. Women scientists and technicians who have taken a career break will be matched with industry, academia, or research organizations (in corporations, colleges, graduate schools, and research institutes), so that they can continue their careers.

energy map; and promote green remodeling of existing buildings. -­­ More people will benefit from energy vouchers. Households whose members suffer from a rare disease will be added to the list of recipients, enabling the social safety net to reach a greater number of the underprivileged.

To boost industrial vitality by raising the competitiveness of core industries Ministry of Trade, Industry and Energy

To identify eco-friendly future energies and foster new energy businesses Ministry of Trade, Industry and Energy

▪ Are we making and using cleaner energy? “ Increase the share of renewable energy generation to 20% by 2030 and increase energy welfare for low- income household” ­­ ­­- By 2030, the share of power generated by renewable energy sources will be increased to 20 percent. The economy will move away from a structure of high energy consumption to an eco-friendly, high efficiency structure. As a result, ordinary citizens will see enjoy enhanced energy welfare. ­­- P articipation in renewable energy industries will be made more accessible for small business owners. The conditions for corporate investment will also be improved. As a result, the share of renewable energy generation will reach 20% of all power generation by 2030. Also, the government will purchase electricity at fixed prices to ensure a stable income for small businesses. It will also introduce a system of planned land location for wind power. Spacing regulations will also be eased. By 2030, the ratio of renewable energy under the renewable portfolio standard (RPS) will also be raised to 28%. ­­- The Government will build an infrastructure for eco-friendly smart energy, and create new businesses based on the IoE (International Organization of Employers). By 2020, all public organizations will be required to have an energy storage system (ESS), and intelligent measuring systems will be installed nationwide. -­­ Demand for energy in key areas—homes, commerce, transportation, the public sector, and buildings—will be managed with increased rigor. Transition to a lowcarbon, high efficiency structure will be achieved through the use of under-utilized thermal energy. To this end, the Government will introduce the minimum energy performance standard for major industrial applications; launch the zero-energy building certification program in the public sector from 2020; build a national thermal 24

▪ What can be done to restore vitality in the economy? “ Institutionally support smartification, fusion, convergence, and the development of services in key industries” ­­ ­­- T he Government will preemptively reorganize key industries and increase overall competitiveness through smartification, fusion, convergence, and the development of services. It will assist efforts by SMEs and mid-market firms to export overseas and help to bring 50,000 jobs in foreign-invested companies and 1,000 jobs in u-turn companies. -­­ To cope with the Fourth Industrial Revolution, the government established the Manufacturing Industry Renaissance Strategy in 2017. The strategy aims to have 20,000 smart factories in operation by 2022 by introducing the smart factory certification program in 2018 and offering increased financial support. -­­ Every year, the government assists 50 companies to reorganize their businesses. In an effort to encourage preemptive industry-wide restructuring, more incentives were instituted in 2019 for companies that undertake business reorganization. ­­- T he export structure will be revamped. More businesses can benefit from tailored export support under the Korean-Made Strategy, which develops industry and trade policies in line with the nation’s brand strategy. The Government will support overseas marketing activities using the Korean Wave, select the top 100 companies producing consumer goods, increase support for SMEs and mid-market firms to export through trading companies, and offer preferential trade insurance for SMEs and mid-market firms. ­­- The government is revisiting its program to attract new industries, foreign-invested companies and u-turn companies with high job-creation potential.

25


To build a country promoting start-ups and encouraging innovation

Strategy

Promoting Innovative Growth and Start-ups Led by Small and Medium-sized Business Ventures

Ministry of SMEs and Start-ups

▪ How does the government support innovative start-ups? “ Enact the Venture Investment Promotion Act (tentative name), increase venture funds to levels seen in developed countries”

Question

­­

How can small but robust businesses be innovatively nurtured?

- Sporadic investment rules and regulations will be integrated under the Venture Investment Promotion Act (tentative name), and restrictions will be changed to be more market-friendly.

“ Small and Medium Business Administration elevated to Ministry of SMEs and Startups, narrow wage gaps between large businesses and SMEs, alleviate hiring challenges faced by SMEs”

- By 2022, the government aims to raise over 5 trillion won in additional venture capital through angel investment. This requires easing of M&A rules, special tax breaks, and other institutional improvements to ensure more favorable conditions venture capital to recover their funds.

• A fundamental transformation is required to fix the trickle-down myth and the job precipice faced by young job-seekers. The Korean economic paradigm will shift from one centered on big conglomerates to one on SMEs and venture businesses. Especially as the nation prepares for the Fourth Industrial Revolution, innovation will be led by SMEs and venture businesses. A key strategy of the government is to strengthen the incomeled growth system by ensuring that the fruit of growth is evenly shared with workers.

- The government will foster 56,000 technology start-ups by 2022 and provide increased policy funding to support them in each stage of their growth cycle.

• The government system is transformed, starting with the upgrade of the Small and Medium Business Administration to Ministry of SMEs and Startups for more systematic and extensive support for SMEs and venture businesses.

- The government will offer start-ups more exemption from due payments. It will also mandate public institutions to procure from startups and refine the venture business verification system.

• Various policies will be enforced to narrow the wage gap between big conglomerates and SMEs, and ultimately alleviate SMEs’ challenges in hiring talents and manage personnel. The government will also establish a robust system to assist business startups and recovery from failures. This effort helps create a business environment where people can use innovative ideas to start a business and become global players.

- A more favorable environment will be shaped to allow startups to get a second chance. To lessen the fear of failure, start-ups have, since 2018, been exempted from the joint surety requirement when taking out a policy loan or guarantee from a policy finance institution. Hard-working entrepreneurs who failed will benefit from a package of customized training, commercialization, and funding so that they can bounce back.

National Policy Tasks To create a healthy growth environment for SMEs

What is the government doing to achieve this? ▪ To build a country promoting startups and encouraging innovation -Ministry of SMEs and Startups ▪ To create a healthy growth environment for SMEs -Ministry of SMEs and Startups ▪ To address the labor shortage at SMEs by narrowing the wage gap between large-sized

enterprises and SMEs -Ministry of SMEs and Startups

Ministry of SMEs and Startups

▪ Will SMEs and the government be able to go up the growth ladder together? “ Double R&D budget for SMEs, increase secured bank loans using accounts receivable insurance without recourse” ­­ - Full support will be given to nurture SMEs, creating jobs and achieving income-driven

26

27


To build a country promoting start-ups and encouraging innovation

Strategy

Promoting Innovative Growth and Start-ups Led by Small and Medium-sized Business Ventures

Ministry of SMEs and Start-ups

▪ How does the government support innovative start-ups? “ Enact the Venture Investment Promotion Act (tentative name), increase venture funds to levels seen in developed countries”

Question

­­

How can small but robust businesses be innovatively nurtured?

- Sporadic investment rules and regulations will be integrated under the Venture Investment Promotion Act (tentative name), and restrictions will be changed to be more market-friendly.

“ Small and Medium Business Administration elevated to Ministry of SMEs and Startups, narrow wage gaps between large businesses and SMEs, alleviate hiring challenges faced by SMEs”

- By 2022, the government aims to raise over 5 trillion won in additional venture capital through angel investment. This requires easing of M&A rules, special tax breaks, and other institutional improvements to ensure more favorable conditions venture capital to recover their funds.

• A fundamental transformation is required to fix the trickle-down myth and the job precipice faced by young job-seekers. The Korean economic paradigm will shift from one centered on big conglomerates to one on SMEs and venture businesses. Especially as the nation prepares for the Fourth Industrial Revolution, innovation will be led by SMEs and venture businesses. A key strategy of the government is to strengthen the incomeled growth system by ensuring that the fruit of growth is evenly shared with workers.

- The government will foster 56,000 technology start-ups by 2022 and provide increased policy funding to support them in each stage of their growth cycle.

• The government system is transformed, starting with the upgrade of the Small and Medium Business Administration to Ministry of SMEs and Startups for more systematic and extensive support for SMEs and venture businesses.

- The government will offer start-ups more exemption from due payments. It will also mandate public institutions to procure from startups and refine the venture business verification system.

• Various policies will be enforced to narrow the wage gap between big conglomerates and SMEs, and ultimately alleviate SMEs’ challenges in hiring talents and manage personnel. The government will also establish a robust system to assist business startups and recovery from failures. This effort helps create a business environment where people can use innovative ideas to start a business and become global players.

- A more favorable environment will be shaped to allow startups to get a second chance. To lessen the fear of failure, start-ups have, since 2018, been exempted from the joint surety requirement when taking out a policy loan or guarantee from a policy finance institution. Hard-working entrepreneurs who failed will benefit from a package of customized training, commercialization, and funding so that they can bounce back.

National Policy Tasks To create a healthy growth environment for SMEs

What is the government doing to achieve this? ▪ To build a country promoting startups and encouraging innovation -Ministry of SMEs and Startups ▪ To create a healthy growth environment for SMEs -Ministry of SMEs and Startups ▪ To address the labor shortage at SMEs by narrowing the wage gap between large-sized

enterprises and SMEs -Ministry of SMEs and Startups

Ministry of SMEs and Startups

▪ Will SMEs and the government be able to go up the growth ladder together? “ Double R&D budget for SMEs, increase secured bank loans using accounts receivable insurance without recourse” ­­ - Full support will be given to nurture SMEs, creating jobs and achieving income-driven

26

27


growth. By 2022, Korea will have more than 110,000 exporting SMEs, 65,000 more jobs through increased R&D support, and 5,000 new jobs created by nurturing small but strong businesses and hidden champions. - The newly-established Ministry of SMEs and Startups is the single channel for all SMErelated policies. They also have more authority to resolve redundancy in SME funding programs. - The government’s SME R&D budget will be doubled, and the R&D support system will be redesigned to be user-centric. The size of the budget and the period will be increased, making the program more effective. - To alleviate capital shortages faced by SMEs due to uncollected accounts receivable and support smooth business management activities, the government instituted secured bank loans that SMEs can take out using their accounts receivable insurance. - To reinforce SMEs’ export competence, the government established a system to support direct sales overseas and upgraded the online platform for one-stop export support. It operates export councils at the regional level, closely tracks and manages domestic companies, and supports specialized marketing initiatives tied with regional strategic industries.

- From 2017, the government offered an incentive program for SMEs to hire young adults. Under the program, an SME is eligible for an annual grant of 9 million won annual for every new young adult hired. The government will ensure that more young adults become eligible for Mutual Aid for Young People and more government funds be allocated for this purpose. - SMEs receive assistance to attract outstanding technicians and more training opportunities will be made available. By 2022, there will be a greater number of Department of Contract Studies related to the Fourth Industrial Revolution (such as ICT fusion). The government will also manage the Young Meister Fostering Program to foster outstanding Meister high school or vocational high school students as basic R&D professionals. - To narrow the wage gap between major conglomerates and SMEs, the government introduced the Future Performance Sharing Program in 2017. Under the program, a successful and growing business would, in the future, share part of its stocks and/or profits with its employees. The government is promoting the program and giving preferential treatment to businesses that adopt it. It is aiming to have 100,000 businesses adopt the program by 2022.

- The government fosters global small but robust companies and hidden champions. It reviews relevant laws and regulations, as well as SME support programs to ensure that the growth of SMEs into enterprises of middle standing is not inhibited by severance of support.

To address the labor shortage at SMEs by narrowing the wage gap between large-sized enterprises and SMEs Ministry of SMEs and Startups ▪ How is the government easing hiring challenges faced by SMEs? “ Incentivize hiring of new young adults in the form of an annual grant of 9 million won for every new young adult hired” ­­ - To help SMEs cope with challenges in hiring, the government offers funds to cover payroll costs, develop personnel, and attract young, outstanding technicians. It is striving to narrow the wage gap between big conglomerates and SMEs by expanding the Future Performance Sharing Program.

28

29


growth. By 2022, Korea will have more than 110,000 exporting SMEs, 65,000 more jobs through increased R&D support, and 5,000 new jobs created by nurturing small but strong businesses and hidden champions. - The newly-established Ministry of SMEs and Startups is the single channel for all SMErelated policies. They also have more authority to resolve redundancy in SME funding programs. - The government’s SME R&D budget will be doubled, and the R&D support system will be redesigned to be user-centric. The size of the budget and the period will be increased, making the program more effective. - To alleviate capital shortages faced by SMEs due to uncollected accounts receivable and support smooth business management activities, the government instituted secured bank loans that SMEs can take out using their accounts receivable insurance. - To reinforce SMEs’ export competence, the government established a system to support direct sales overseas and upgraded the online platform for one-stop export support. It operates export councils at the regional level, closely tracks and manages domestic companies, and supports specialized marketing initiatives tied with regional strategic industries.

- From 2017, the government offered an incentive program for SMEs to hire young adults. Under the program, an SME is eligible for an annual grant of 9 million won annual for every new young adult hired. The government will ensure that more young adults become eligible for Mutual Aid for Young People and more government funds be allocated for this purpose. - SMEs receive assistance to attract outstanding technicians and more training opportunities will be made available. By 2022, there will be a greater number of Department of Contract Studies related to the Fourth Industrial Revolution (such as ICT fusion). The government will also manage the Young Meister Fostering Program to foster outstanding Meister high school or vocational high school students as basic R&D professionals. - To narrow the wage gap between major conglomerates and SMEs, the government introduced the Future Performance Sharing Program in 2017. Under the program, a successful and growing business would, in the future, share part of its stocks and/or profits with its employees. The government is promoting the program and giving preferential treatment to businesses that adopt it. It is aiming to have 100,000 businesses adopt the program by 2022.

- The government fosters global small but robust companies and hidden champions. It reviews relevant laws and regulations, as well as SME support programs to ensure that the growth of SMEs into enterprises of middle standing is not inhibited by severance of support.

To address the labor shortage at SMEs by narrowing the wage gap between large-sized enterprises and SMEs Ministry of SMEs and Startups ▪ How is the government easing hiring challenges faced by SMEs? “ Incentivize hiring of new young adults in the form of an annual grant of 9 million won for every new young adult hired” ­­ - To help SMEs cope with challenges in hiring, the government offers funds to cover payroll costs, develop personnel, and attract young, outstanding technicians. It is striving to narrow the wage gap between big conglomerates and SMEs by expanding the Future Performance Sharing Program.

28

29


Government Goal

A Nation Taking Responsibility for Each Individual

Strategy Providing Inclusive Welfare Strategy Fostering a Fair Society that Respects Labor and Promotes

Gender Equality

Strategy Building a Country Where Liberty, Creativity and Culture Thrive


Government Goal

A Nation Taking Responsibility for Each Individual

Strategy Providing Inclusive Welfare Strategy Fostering a Fair Society that Respects Labor and Promotes

Gender Equality

Strategy Building a Country Where Liberty, Creativity and Culture Thrive


To provide customized social welfare guaranteeing a basic standard of Living

Strategy

Ministry of Health and Welfare

Providing Inclusive Welfare

▪ How did the social security system change to ensure basic living standards? “ Strengthen social security throughout the life course and support independence of vulnerable groups” Question

What is an inclusive welfare state? “Strengthen the state welfare system to address deepening inequality”

• A market economy marked by fierce competition may result in an unequal structure of winners vs. losers. Amid growing inequality, it is necessary to achieve national unity based on social and economic equality, human dignity, and solidarity among society members. Building an inclusive, progressive welfare state is a significant task. • The Moon Jae-in administration strives to strengthen the welfare state system as a key strategy to address deepening inequality. The government’s life-cycle income assistance program—i.e., children allowances, incentives for young adults to find a job, and increased basic pension—guarantees a basic income level for all citizens. The government also continues efforts to achieve universal health coverage and reinforce publicness in healthcare services to ensure that everyone, regardless of their income levels or residence, could access quality medical services for a healthy life. Retired generations receive support to maintain a job and an adequate level of public pension. The government also strives to ensure a healthy and dignified life after retirement, through the National Dementia Initiative and support for leisure and social activities. The goal is to realize a welfare state where everyone can receive community care, from the cradle to the grave.

National Policy Tasks What is the government doing to achieve this? ▪ To provide customized social welfare guaranteeing a basic standard of Living -Ministry of Health and Welfare

▪ To guarantee a healthy and decent life for the elderly in preparation for an aged society -Ministry of Health and Welfare

▪ To enhance coverage of the national health insurance and support for preventive healthcare -Ministry of Health and Welfare

▪ To enhance healthcare in the public interest and provide patient-oriented medical services -Ministry of Health and Welfare

▪ To provide affordable housing for low-income households -Ministry of Land, Infrastructure and Transport ▪ To relieve the housing cost burden of newlyweds and young adults -Ministry of Land, Infrastructure and Transport

32

­­ -­­ To ensure basic living standards throughout the life course, the government strengthens social security and builds an environment that allows persons with disabilities live together with independence. -­­ From 2018, the criteria regarding obligatory family provider was abolished for basic livelihood security housing benefits. For livelihood and medical benefits, the criteria will be phased out for households in the lower 70% property income bracket which include seniors and people with severe disabilities. The government also assists independence of the vulnerable by expanding the scope and extent of self-support benefits. -­­ From 2018, parents of children aged five or less are given a monthly allowance of 100,000 won per child. In September 2019, the benefit was extended to children under the age of seven. From 2017, a monthly benefit—300,000 won for up to three months— has been provided to younger generations seeking a job. From 2019, this benefit was replaced by an incentive provided to younger people—500,000 won to cover job search expenses for up to six months. The basic pension amount will gradually increase from 250,000 won in 2018 to 300,000 won in 2021, starting from older adults facing financial difficulties. The disability pension (basic benefit) will be gradually raised to 300,000 won by 2021 (250,000 won in 2018) for low-income persons with disabilities. -­­ More low-income workers, farmers, fishermen, and other vulnerable groups will receive insurance premium support. The government will encourage subscription to employment insurance by expanding eligibility and subscription support. The Durunuri social insurance premium support program provides additional support for the national health insurance premium of new subscribers. -­­ While phasing out the disability rating system, a comprehensive disability service system has been introduced. At the same time, the legislation of the Rights of Persons with Disabilities Act was discussed, health insurance benefits were provided to cover disability assistive devices, and medical support has been expanded with the establishment of children rehabilitation hospitals across districts. Persons with disabilities who are discharged from residential facilities are given assistance to be integrated in their local community. Also, divide between those with and without 33


To provide customized social welfare guaranteeing a basic standard of Living

Strategy

Ministry of Health and Welfare

Providing Inclusive Welfare

▪ How did the social security system change to ensure basic living standards? “ Strengthen social security throughout the life course and support independence of vulnerable groups” Question

What is an inclusive welfare state? “Strengthen the state welfare system to address deepening inequality”

• A market economy marked by fierce competition may result in an unequal structure of winners vs. losers. Amid growing inequality, it is necessary to achieve national unity based on social and economic equality, human dignity, and solidarity among society members. Building an inclusive, progressive welfare state is a significant task. • The Moon Jae-in administration strives to strengthen the welfare state system as a key strategy to address deepening inequality. The government’s life-cycle income assistance program—i.e., children allowances, incentives for young adults to find a job, and increased basic pension—guarantees a basic income level for all citizens. The government also continues efforts to achieve universal health coverage and reinforce publicness in healthcare services to ensure that everyone, regardless of their income levels or residence, could access quality medical services for a healthy life. Retired generations receive support to maintain a job and an adequate level of public pension. The government also strives to ensure a healthy and dignified life after retirement, through the National Dementia Initiative and support for leisure and social activities. The goal is to realize a welfare state where everyone can receive community care, from the cradle to the grave.

National Policy Tasks What is the government doing to achieve this? ▪ To provide customized social welfare guaranteeing a basic standard of Living -Ministry of Health and Welfare

▪ To guarantee a healthy and decent life for the elderly in preparation for an aged society -Ministry of Health and Welfare

▪ To enhance coverage of the national health insurance and support for preventive healthcare -Ministry of Health and Welfare

▪ To enhance healthcare in the public interest and provide patient-oriented medical services -Ministry of Health and Welfare

▪ To provide affordable housing for low-income households -Ministry of Land, Infrastructure and Transport ▪ To relieve the housing cost burden of newlyweds and young adults -Ministry of Land, Infrastructure and Transport

32

­­ -­­ To ensure basic living standards throughout the life course, the government strengthens social security and builds an environment that allows persons with disabilities live together with independence. -­­ From 2018, the criteria regarding obligatory family provider was abolished for basic livelihood security housing benefits. For livelihood and medical benefits, the criteria will be phased out for households in the lower 70% property income bracket which include seniors and people with severe disabilities. The government also assists independence of the vulnerable by expanding the scope and extent of self-support benefits. -­­ From 2018, parents of children aged five or less are given a monthly allowance of 100,000 won per child. In September 2019, the benefit was extended to children under the age of seven. From 2017, a monthly benefit—300,000 won for up to three months— has been provided to younger generations seeking a job. From 2019, this benefit was replaced by an incentive provided to younger people—500,000 won to cover job search expenses for up to six months. The basic pension amount will gradually increase from 250,000 won in 2018 to 300,000 won in 2021, starting from older adults facing financial difficulties. The disability pension (basic benefit) will be gradually raised to 300,000 won by 2021 (250,000 won in 2018) for low-income persons with disabilities. -­­ More low-income workers, farmers, fishermen, and other vulnerable groups will receive insurance premium support. The government will encourage subscription to employment insurance by expanding eligibility and subscription support. The Durunuri social insurance premium support program provides additional support for the national health insurance premium of new subscribers. -­­ While phasing out the disability rating system, a comprehensive disability service system has been introduced. At the same time, the legislation of the Rights of Persons with Disabilities Act was discussed, health insurance benefits were provided to cover disability assistive devices, and medical support has been expanded with the establishment of children rehabilitation hospitals across districts. Persons with disabilities who are discharged from residential facilities are given assistance to be integrated in their local community. Also, divide between those with and without 33


disabilities are narrowed by increasing the percentage of persons with severe disabilities taking health medical examination (persons with severe disabilities: 55.6%, overall average: 77.9%).

To guarantee a healthy and decent life for the elderly in preparation for an aged society Ministry of Health and Welfare ▪ How does the government ensure old age income and dementia treatment? “ Set adequate levels of public and basic pensions to ensure old age income security and expand state responsibility for persons with dementia” ­­ -­­ Elderly poverty and population ageing are social challenges that require collective efforts. To ensure income security and a higher quality of life for senior citizens, an adequate level of public pension should be provided. Dementia coupled with an aging society is another challenge facing the government. -­­ The government will guarantee old age income through adequate levels of national pension and basic pension. The ratio of pension benefits to individual earnings will be increased under social consensus based on national pension finances of 2018. The basic pension amount will gradually increase from 250,000 won in 2018 to 300,000 won in 2021, starting from older adults in financial distress. More support will be given to short-term or daily workers and women who are on a career break. -­­ To ensure stable life of the new middle-aged population, health insurance premiums of new subscribers will be covered by the Durunuri social insurance premium support program. The government will also expand the period and scope of the status of the Voluntarily and Continuously Insured. -­­ In 2017, the government strengthened state responsibility for persons with dementia and established 256 dementia care centers nationwide as regional bases for dementia management. The government is also committed to expanding infrastructure for dementia patients, including hospitals dedicated to severe dementia treatment. Also, from the second half of 2017, out-of-pocket expenses of severe dementia care costs have been reduced. The cost of neurocognitive function tests and expensive MRIs to diagnose dementia is now covered by health insurance. More dementia patients will benefit from long-term care services thanks to the cognitive assistance rating system introduced in 2018, which allows people with mild dementia to benefit from the longterm care service.

34

­­- A s the society gets older, more jobs for seniors will be created. The number of jobs will be increased from 437,000 in 2017 to 800,000 in 2021. -­­ The government will add transparency and efficiency to governance of the national pension fund. The National Pension Fund Management Committee will operate as a standing organization, and information on the decision-making process of fund investment and details of assets will be disclosed. Meanwhile, the introduction of stewardship code will help strengthen shareholders’ exercise of rights based on the principle for socially responsible investments. -­­ Community Care Services are introduced to allow the elderly enjoy a healthy life in their own community. In-home visit medical care will be offered so that older persons who need care due to illness, aging, or disability can continue to live in their home and local community. Those discharged from hospitals will also receive assistance in returning to their home community. Efforts to expand care services include establishment of Comprehensive In-Home Care Service Centers, introduction of home-based medical care, meal delivery, and mobility assistance, as well as increased housing support infrastructure. These services will be holistically organized to meet users’ needs.

To enhance coverage of the national health insurance and support for preventive healthcare Ministry of Health and Welfare ▪ How can health insurance provide more reliable coverage? “ Increase the national health insurance coverage to 70% by 2022 and set ceiling on copayment based on income levels” -­­ The national health insurance plans to extend coverage, lowering the burden of medical costs faced by households. By 2022, the coverage will be increased to up to 70%. Also, the government plans to reform the method health insurance premiums are imposed, lowering cost burden on subscribers and improving equity. The goal is to extend life span and address inequality across regions and social classes by expanding health promotion projects. -­­ Selective benefits will be expanded while strengthening coverage via the expanded new inclusive medical fee system. Selective treatment has been abolished, and advanced patient rooms are increasingly covered by the national health insurance. The burden caused by non-coverage in three major areas (selective benefit, advanced hospital room, and nursing fee) is significantly reduced thanks to efforts to foster nurses and provide integrated nursing and care services. 35


disabilities are narrowed by increasing the percentage of persons with severe disabilities taking health medical examination (persons with severe disabilities: 55.6%, overall average: 77.9%).

To guarantee a healthy and decent life for the elderly in preparation for an aged society Ministry of Health and Welfare ▪ How does the government ensure old age income and dementia treatment? “ Set adequate levels of public and basic pensions to ensure old age income security and expand state responsibility for persons with dementia” ­­ -­­ Elderly poverty and population ageing are social challenges that require collective efforts. To ensure income security and a higher quality of life for senior citizens, an adequate level of public pension should be provided. Dementia coupled with an aging society is another challenge facing the government. -­­ The government will guarantee old age income through adequate levels of national pension and basic pension. The ratio of pension benefits to individual earnings will be increased under social consensus based on national pension finances of 2018. The basic pension amount will gradually increase from 250,000 won in 2018 to 300,000 won in 2021, starting from older adults in financial distress. More support will be given to short-term or daily workers and women who are on a career break. -­­ To ensure stable life of the new middle-aged population, health insurance premiums of new subscribers will be covered by the Durunuri social insurance premium support program. The government will also expand the period and scope of the status of the Voluntarily and Continuously Insured. -­­ In 2017, the government strengthened state responsibility for persons with dementia and established 256 dementia care centers nationwide as regional bases for dementia management. The government is also committed to expanding infrastructure for dementia patients, including hospitals dedicated to severe dementia treatment. Also, from the second half of 2017, out-of-pocket expenses of severe dementia care costs have been reduced. The cost of neurocognitive function tests and expensive MRIs to diagnose dementia is now covered by health insurance. More dementia patients will benefit from long-term care services thanks to the cognitive assistance rating system introduced in 2018, which allows people with mild dementia to benefit from the longterm care service.

34

­­- A s the society gets older, more jobs for seniors will be created. The number of jobs will be increased from 437,000 in 2017 to 800,000 in 2021. -­­ The government will add transparency and efficiency to governance of the national pension fund. The National Pension Fund Management Committee will operate as a standing organization, and information on the decision-making process of fund investment and details of assets will be disclosed. Meanwhile, the introduction of stewardship code will help strengthen shareholders’ exercise of rights based on the principle for socially responsible investments. -­­ Community Care Services are introduced to allow the elderly enjoy a healthy life in their own community. In-home visit medical care will be offered so that older persons who need care due to illness, aging, or disability can continue to live in their home and local community. Those discharged from hospitals will also receive assistance in returning to their home community. Efforts to expand care services include establishment of Comprehensive In-Home Care Service Centers, introduction of home-based medical care, meal delivery, and mobility assistance, as well as increased housing support infrastructure. These services will be holistically organized to meet users’ needs.

To enhance coverage of the national health insurance and support for preventive healthcare Ministry of Health and Welfare ▪ How can health insurance provide more reliable coverage? “ Increase the national health insurance coverage to 70% by 2022 and set ceiling on copayment based on income levels” -­­ The national health insurance plans to extend coverage, lowering the burden of medical costs faced by households. By 2022, the coverage will be increased to up to 70%. Also, the government plans to reform the method health insurance premiums are imposed, lowering cost burden on subscribers and improving equity. The goal is to extend life span and address inequality across regions and social classes by expanding health promotion projects. -­­ Selective benefits will be expanded while strengthening coverage via the expanded new inclusive medical fee system. Selective treatment has been abolished, and advanced patient rooms are increasingly covered by the national health insurance. The burden caused by non-coverage in three major areas (selective benefit, advanced hospital room, and nursing fee) is significantly reduced thanks to efforts to foster nurses and provide integrated nursing and care services. 35


­­- To lessen the burden for low-income households, a ceiling is set on co-payment based on income levels. In 2017, the co-payment rate for in-patient treatment borne by children aged 15 or less was reduced to 5%. The financial soundness of the national health insurance will be enhanced through robust oversight of private health insurance schemes. ­­- The government plans to introduce diagnosis vouchers for people aged 40 or older for more rigorous enforcement of follow-up care after medical examination, and provide flu vaccination for elementary school students and further expand it to cover junior and high school students. -­­ The system for mental health service delivery is re-organized to foster experts and improve work conditions. An improved system for mental health will contribute to preventing suicide and promote a greater sense of respect for life. -­­ The government will reform the method health insurance premiums are imposed. The asset criterion is abolished, and office workers with high non-wage incomes must pay higher insurance premiums. The dependent criterion is also gradually reduced.

To enhance healthcare in the public interest and provide patient-oriented medical services Ministry of Health and Welfare ▪ Can everyone equally benefit from medical services? “ Reform medical fees management of the national health insurance and narrow regional gaps in medical services by expanding public health and medical treatment” -­­ The establishment of public medical institutions and well-functioning medical systems in local communities will help narrow regional gaps in healthcare services and manage medical costs at sustainable levels. An effective response system against infectious diseases will prevent a potential outbreak such as the MERS outbreak and reduce the rate of preventable death to 25% by 2021. ­­- To strengthen community-based medical systems, the government will review options to improve medical fees management by 2020, and redefine the role of primary healthcare institutions and large hospitals. Primary healthcare institutions will focus on non-communicable diseases while large hospitals focus on serious illnesses and in-patient care. The government also aims to build an information exchange system across districts to link medical information across the nation.

36

-­­ To narrow regional gaps in medical services, the National Public Health and Medical School (and Graduate School) is slated for opening in 2023 as a four-year state-run university corporation. In 2019, a public health scholarship was launched as a pilot program to send doctors to public medical institutions in remote locations. ­­- To strengthen the role of medical services as public utility, the government will expand emergency medical helicopters, pediatrics emergency centers and rehabilitation hospitals by 2022. To build a patient-centered emergency medical system, trauma centers will be established nationwide and cardiovascular centers will be designated. -­­ The Korea Centers for Disease Control and Prevention (KCDC), now elevated to a vice-ministerial level, will serve as the control tower against infectious disease outbreaks. KCDC has strengthened its response system by introducing a 24-hour Emergency Operations Center (EOC) and hiring epidemiological experts.

To provide affordable housing for low-income households Ministry of Land, Infrastructure and Transport

▪ How can the government promote stable housing for low-income households? “ Increase the share of long-term public and publicly assisted rental housing to 9% of all housing units by 2022 backed by the annual average supply of 170,000 units of the said category” -­­ The government focuses on providing more long-term public and publicly assisted rental housing units, with greater assistance for those living in poor housing conditions, or ‘housing-disadvantaged people,’ such as the elderly and the disabled with low incomes. By raising the portion of long-term public and publicly assisted rental housing to 9% of all housing units by 2022, the government aims to support stable housing for low-income households. -­­ Specifically, the government plans to supply an annual average of 130,000 units in public rental housing and 40,000 units in publicly assisted rental housing by 2022. To improve efficiency, the government is committed to integrating public rental housing types that are known to have a high degree of fragmentation, as well as introducing a waiting list system for applicants to enhance predictability for move-in times. -­­ The government also strives to extend eligibility for housing welfare to a wider group of recipients to address welfare blind spots, while seeking to raise benefits progressively to a reasonable level. The severely disabled will be given priority in application for public rental housing designed for ‘housing-disadvantaged people’. 37


­­- To lessen the burden for low-income households, a ceiling is set on co-payment based on income levels. In 2017, the co-payment rate for in-patient treatment borne by children aged 15 or less was reduced to 5%. The financial soundness of the national health insurance will be enhanced through robust oversight of private health insurance schemes. ­­- The government plans to introduce diagnosis vouchers for people aged 40 or older for more rigorous enforcement of follow-up care after medical examination, and provide flu vaccination for elementary school students and further expand it to cover junior and high school students. -­­ The system for mental health service delivery is re-organized to foster experts and improve work conditions. An improved system for mental health will contribute to preventing suicide and promote a greater sense of respect for life. -­­ The government will reform the method health insurance premiums are imposed. The asset criterion is abolished, and office workers with high non-wage incomes must pay higher insurance premiums. The dependent criterion is also gradually reduced.

To enhance healthcare in the public interest and provide patient-oriented medical services Ministry of Health and Welfare ▪ Can everyone equally benefit from medical services? “ Reform medical fees management of the national health insurance and narrow regional gaps in medical services by expanding public health and medical treatment” -­­ The establishment of public medical institutions and well-functioning medical systems in local communities will help narrow regional gaps in healthcare services and manage medical costs at sustainable levels. An effective response system against infectious diseases will prevent a potential outbreak such as the MERS outbreak and reduce the rate of preventable death to 25% by 2021. ­­- To strengthen community-based medical systems, the government will review options to improve medical fees management by 2020, and redefine the role of primary healthcare institutions and large hospitals. Primary healthcare institutions will focus on non-communicable diseases while large hospitals focus on serious illnesses and in-patient care. The government also aims to build an information exchange system across districts to link medical information across the nation.

36

-­­ To narrow regional gaps in medical services, the National Public Health and Medical School (and Graduate School) is slated for opening in 2023 as a four-year state-run university corporation. In 2019, a public health scholarship was launched as a pilot program to send doctors to public medical institutions in remote locations. ­­- To strengthen the role of medical services as public utility, the government will expand emergency medical helicopters, pediatrics emergency centers and rehabilitation hospitals by 2022. To build a patient-centered emergency medical system, trauma centers will be established nationwide and cardiovascular centers will be designated. -­­ The Korea Centers for Disease Control and Prevention (KCDC), now elevated to a vice-ministerial level, will serve as the control tower against infectious disease outbreaks. KCDC has strengthened its response system by introducing a 24-hour Emergency Operations Center (EOC) and hiring epidemiological experts.

To provide affordable housing for low-income households Ministry of Land, Infrastructure and Transport

▪ How can the government promote stable housing for low-income households? “ Increase the share of long-term public and publicly assisted rental housing to 9% of all housing units by 2022 backed by the annual average supply of 170,000 units of the said category” -­­ The government focuses on providing more long-term public and publicly assisted rental housing units, with greater assistance for those living in poor housing conditions, or ‘housing-disadvantaged people,’ such as the elderly and the disabled with low incomes. By raising the portion of long-term public and publicly assisted rental housing to 9% of all housing units by 2022, the government aims to support stable housing for low-income households. -­­ Specifically, the government plans to supply an annual average of 130,000 units in public rental housing and 40,000 units in publicly assisted rental housing by 2022. To improve efficiency, the government is committed to integrating public rental housing types that are known to have a high degree of fragmentation, as well as introducing a waiting list system for applicants to enhance predictability for move-in times. -­­ The government also strives to extend eligibility for housing welfare to a wider group of recipients to address welfare blind spots, while seeking to raise benefits progressively to a reasonable level. The severely disabled will be given priority in application for public rental housing designed for ‘housing-disadvantaged people’. 37


-­­ In an effort to promote social integration, the government plans to give rental property owners more incentives for voluntary registration. In the same vein, the government is poised to make gradual legislation, including the institutionalization of tenants’ right to request a one-time renewal of their rental housing contracts at the end of a two-year lease.

To relieve the housing cost burden of newlyweds and young adults Ministry of Land, Infrastructure and Transport

▪ How can the government alleviate housing costs for newly married couples and young people? “ Supply 200,000 public rental houses for newlyweds and 300,000 rooms for the youth by 2022” -­­ The government is dedicated to easing the housing cost burden of newlyweds and young adults by providing them more support. For newlyweds, the government plans to supply 200,000 public rental houses by 2022 in addition to building homes customized to their specific needs and increasing the percentage of ‘special supply’ of pre-sale homes allocated to newly married couples, who are here subject to several eligibility requirements including income and assets. -­­ As financial assistance, the government launched loan products available exclusively to newlyweds in 2018 to help them purchase a house or pay for a key deposit under a jeonse contract, while implementing housing cost reduction measures for low-income newlyweds. -­­ For young adults, the government plans to supply about 300,000 rooms, of which 250,000 are set to be comprised of units located in proximity to workplaces, in the form of shared housing, or with easy access to public transport, as well as the remaining 50,000 as dormitory rooms.

Strategy

Fostering a Fair Society that Respects Labor and Promotes Gender Equality Question

What is being done to promote a fair, discrimination-free society? “ Strengthen labor rights, engage labor in social dialogues, and place gender-equality policy officers”

• Perceiving and treating difference as superiority or inferiority rather than diversity constitutes discrimination. Discrimination entails undesirable, unfair inequality among individuals and groups. It fosters mutual distrust and animosity, and creates social conflicts and division. • The key values that the Moon Administration supports are justice and unity. It is oriented towards a people- centered fair society where diversity is respected and no one is discriminated. It is strengthening labor rights and engaging labor in social dialogues because a society or economy that places people at the center cannot but respect their labor. Thus, a key task of the government is to create a workplace free of discrimination and to resolve the issue of permanent positions versus temporary ones. • The key to resolving social discrimination lies in promoting respect for diversity and realizing a gender- equal society. The government is striving to promote gender equality in the society by supporting all families to enjoy life regardless of how they look like, remove social discrimination, and staff key government departments with genderequality policy officers.

National Policy Tasks What is the government doing to achieve this? ▪ To realize a society where labor is respected -Ministry of Employment and Labor ▪ To create a healthy and discrimination-free workplace -Ministry of Employment and Labor ▪ To support various disadvantaged families to stabilize their lives and address discrimination -Ministry of Gender Equality and Family)

▪ To achieve de facto gender equality in society -Ministry of Gender Equality and Family

38

39


-­­ In an effort to promote social integration, the government plans to give rental property owners more incentives for voluntary registration. In the same vein, the government is poised to make gradual legislation, including the institutionalization of tenants’ right to request a one-time renewal of their rental housing contracts at the end of a two-year lease.

To relieve the housing cost burden of newlyweds and young adults Ministry of Land, Infrastructure and Transport

▪ How can the government alleviate housing costs for newly married couples and young people? “ Supply 200,000 public rental houses for newlyweds and 300,000 rooms for the youth by 2022” -­­ The government is dedicated to easing the housing cost burden of newlyweds and young adults by providing them more support. For newlyweds, the government plans to supply 200,000 public rental houses by 2022 in addition to building homes customized to their specific needs and increasing the percentage of ‘special supply’ of pre-sale homes allocated to newly married couples, who are here subject to several eligibility requirements including income and assets. -­­ As financial assistance, the government launched loan products available exclusively to newlyweds in 2018 to help them purchase a house or pay for a key deposit under a jeonse contract, while implementing housing cost reduction measures for low-income newlyweds. -­­ For young adults, the government plans to supply about 300,000 rooms, of which 250,000 are set to be comprised of units located in proximity to workplaces, in the form of shared housing, or with easy access to public transport, as well as the remaining 50,000 as dormitory rooms.

Strategy

Fostering a Fair Society that Respects Labor and Promotes Gender Equality Question

What is being done to promote a fair, discrimination-free society? “ Strengthen labor rights, engage labor in social dialogues, and place gender-equality policy officers”

• Perceiving and treating difference as superiority or inferiority rather than diversity constitutes discrimination. Discrimination entails undesirable, unfair inequality among individuals and groups. It fosters mutual distrust and animosity, and creates social conflicts and division. • The key values that the Moon Administration supports are justice and unity. It is oriented towards a people- centered fair society where diversity is respected and no one is discriminated. It is strengthening labor rights and engaging labor in social dialogues because a society or economy that places people at the center cannot but respect their labor. Thus, a key task of the government is to create a workplace free of discrimination and to resolve the issue of permanent positions versus temporary ones. • The key to resolving social discrimination lies in promoting respect for diversity and realizing a gender- equal society. The government is striving to promote gender equality in the society by supporting all families to enjoy life regardless of how they look like, remove social discrimination, and staff key government departments with genderequality policy officers.

National Policy Tasks What is the government doing to achieve this? ▪ To realize a society where labor is respected -Ministry of Employment and Labor ▪ To create a healthy and discrimination-free workplace -Ministry of Employment and Labor ▪ To support various disadvantaged families to stabilize their lives and address discrimination -Ministry of Gender Equality and Family)

▪ To achieve de facto gender equality in society -Ministry of Gender Equality and Family

38

39


To realize a society where labor is respected

To create a healthy and discrimination-free workplace

Ministry of Employment and Labor

Ministry of Employment and Labor

▪ Can fundamental labor rights be institutionally protected?

▪ How can the workplace be safe from labor market polarization?

“ Ratify fundamental ILO conventions and make institutional improvements for worker interest representation”

“ Increase the scope of work that requires direct employment of regular workers and overhaul the policy to redress discrimination against non-regular workers”

­­- The goal is to bolster fundamental labor rights and achieve legislative and institutional improvements for the rights of vulnerable workers through tripartite dialogue. The government is working to ensure workers receive back pay owed to them and protect them from unfair dismissals and workplace bullying, guaranteeing workersʼ fundamental labor rights and protecting their livelihood and human dignity.

-­­ The government is addressing the issue of labor market polarization by reducing the number of non-regular positions and improving labor conditions for outsourced workers and emotional labor workers. It is creating a healthy and safe workplace by preventing industrial accidents.

-­­ All labor must be respected. In 2018, the government completely reorganized the Tripartite Commission (Economic, Social and Labor Council), a consultative body of labor, management, and government, for more democratic representation of entities participating in social dialogues on various agenda. To bolster fundamental labor rights, the government’s two major directives and measures on performance pay at public institutions were abolished in 2017. The government also addressed unlawful and unreasonable directives that required changes to collective agreements. Since 2018, efforts have been made to improve laws and institutions pertaining to labormanagement relations, so as to reflect the diversifying employment types and newly emerging demands, and protect labor rights. -­­ The government is working to ratify the fundamental ILO conventions. Specifically, of the four fundamental conventions that Korea has not yet ratified, it is pursuing to ratify Conventions No. 29 on forced labor, No. 87 on the freedom of association and protection of the right to organize, and No. 98 on the right to organize and collective bargaining. -­­ The government is reinforcing protection of the rights of vulnerable workers. From 2018, it has built a support system to protect the rights of non-unionized workers at SMEs. In 2019, it is devising innovative measures to address wage arrears to ensure workers receive back pays owed to them and increase sanctions against employers who fail to pay employees. It is also improving unfair dismissal remedy procedures and focusing inspections of labor conditions faced by vulnerable workers and back pay issues, with the aim of strengthening the remedy system for workers. -­­ The government is supporting labor rights education to protect the basic rights of young adults and enforcing a law to protect employee from bullying.

40

-­­ The government has established a roadmap to reduce non-regular positions. In principle, a person whose job is of permanent and continuous nature, and related to life and safety, must be directly hired as a regular worker. The government will establish limited reasons for which non-regular workers can be hired. The scope of the limited reasons is to be defined based on survey results. -­­ To create good jobs free of discrimination, the government is completely revisiting the policy to redress discrimination against non-regular workers. It will prohibit discrimination based on the type of employment, and make non-regular workers and anyone who has been on the job for less than a year eligible for retirement benefits. -­­ The government will abolish the joint responsibility for wage payment imposed on subcontractors, and principal contractors will be held more accountable for occupational safety and health measures. ­­- The minimum wage will be raised step by step, and measures will be taken to ease the consequent economic burden faced by small businesses. “Fair Pay” will be established to narrow pay gaps. -­­ The government will overhaul the occupational safety and health system. Dependent self-employed workers will become eligible for protection under the Occupational Safety and Health Act. Hazardous and/or risky operations cannot be passed on to subcontracted workers, and principal contractors will be accountable for safety and health measures in more worksites. Employers are more severely punished in the event of catastrophic disasters. By establishing the legal basis to protect emotional labor workers, the government made workers in special types of employment eligible for industrial accident compensation insurance, removing blind spots in protection. It will also introduce the Material Safety Data Sheets (MSDS) trade secret screening program. 41


To realize a society where labor is respected

To create a healthy and discrimination-free workplace

Ministry of Employment and Labor

Ministry of Employment and Labor

▪ Can fundamental labor rights be institutionally protected?

▪ How can the workplace be safe from labor market polarization?

“ Ratify fundamental ILO conventions and make institutional improvements for worker interest representation”

“ Increase the scope of work that requires direct employment of regular workers and overhaul the policy to redress discrimination against non-regular workers”

­­- The goal is to bolster fundamental labor rights and achieve legislative and institutional improvements for the rights of vulnerable workers through tripartite dialogue. The government is working to ensure workers receive back pay owed to them and protect them from unfair dismissals and workplace bullying, guaranteeing workersʼ fundamental labor rights and protecting their livelihood and human dignity.

-­­ The government is addressing the issue of labor market polarization by reducing the number of non-regular positions and improving labor conditions for outsourced workers and emotional labor workers. It is creating a healthy and safe workplace by preventing industrial accidents.

-­­ All labor must be respected. In 2018, the government completely reorganized the Tripartite Commission (Economic, Social and Labor Council), a consultative body of labor, management, and government, for more democratic representation of entities participating in social dialogues on various agenda. To bolster fundamental labor rights, the government’s two major directives and measures on performance pay at public institutions were abolished in 2017. The government also addressed unlawful and unreasonable directives that required changes to collective agreements. Since 2018, efforts have been made to improve laws and institutions pertaining to labormanagement relations, so as to reflect the diversifying employment types and newly emerging demands, and protect labor rights. -­­ The government is working to ratify the fundamental ILO conventions. Specifically, of the four fundamental conventions that Korea has not yet ratified, it is pursuing to ratify Conventions No. 29 on forced labor, No. 87 on the freedom of association and protection of the right to organize, and No. 98 on the right to organize and collective bargaining. -­­ The government is reinforcing protection of the rights of vulnerable workers. From 2018, it has built a support system to protect the rights of non-unionized workers at SMEs. In 2019, it is devising innovative measures to address wage arrears to ensure workers receive back pays owed to them and increase sanctions against employers who fail to pay employees. It is also improving unfair dismissal remedy procedures and focusing inspections of labor conditions faced by vulnerable workers and back pay issues, with the aim of strengthening the remedy system for workers. -­­ The government is supporting labor rights education to protect the basic rights of young adults and enforcing a law to protect employee from bullying.

40

-­­ The government has established a roadmap to reduce non-regular positions. In principle, a person whose job is of permanent and continuous nature, and related to life and safety, must be directly hired as a regular worker. The government will establish limited reasons for which non-regular workers can be hired. The scope of the limited reasons is to be defined based on survey results. -­­ To create good jobs free of discrimination, the government is completely revisiting the policy to redress discrimination against non-regular workers. It will prohibit discrimination based on the type of employment, and make non-regular workers and anyone who has been on the job for less than a year eligible for retirement benefits. -­­ The government will abolish the joint responsibility for wage payment imposed on subcontractors, and principal contractors will be held more accountable for occupational safety and health measures. ­­- The minimum wage will be raised step by step, and measures will be taken to ease the consequent economic burden faced by small businesses. “Fair Pay” will be established to narrow pay gaps. -­­ The government will overhaul the occupational safety and health system. Dependent self-employed workers will become eligible for protection under the Occupational Safety and Health Act. Hazardous and/or risky operations cannot be passed on to subcontracted workers, and principal contractors will be accountable for safety and health measures in more worksites. Employers are more severely punished in the event of catastrophic disasters. By establishing the legal basis to protect emotional labor workers, the government made workers in special types of employment eligible for industrial accident compensation insurance, removing blind spots in protection. It will also introduce the Material Safety Data Sheets (MSDS) trade secret screening program. 41


To support various disadvantaged families to stabilize their lives and address discrimination Ministry of Gender Equality and Family ▪ How can different family forms be accepted and thrive together? “ Strongly enforce child support for single-parent families and increase support for multi-cultural families to raise their children”

­­- It will staff key government ministries with gender-equality policy officers to improve gender-related policies, perceptions, and practices. It will also improve gender impact analysis and assessment, and management of the gender-sensitive budget performance. ­­- It is implementing the five-year plan to increase the advance of women executives in the public sector, including government ministries, public institutions, schools, and government committees.

-­­ Single-parent families will see an increase in government child support, and the age limit for eligibility will be gradually raised, making raising a child not just a personal problem but a public responsibility. To enforce child support, institutional improvements will be made to allow for the income and assets of the non-custodial parent to be checked.

-­­ It is raising gender equality awareness through more gender equality training, and gender sensitivity training for those working in the press, media and other public services.

­­- Single-parent families with a teenage child and with the will to become self-sufficient are offered support in the form of education, employment, childcare, and selfsufficiency benefit. .

-­­ The government is doing the groundwork to prevent violence against women. As part of various measures taken to deal with this issue, it enacted the Violence against Women Act and established a basic plan in 2018. It is also working on punishments and ways to protect victims of new forms of violence against women, such as stalking and digital sexual crimes.

-­­ The government offers the ‘self-sufficiency support package for wedded immigrants’ and the ‘program to support the growth of multi-cultural children’ to help multicultural families become more self-sufficient and raise their children in a stable environment. It is also conducting education to raise public awareness of the multicultural society. -­­ It is preventing family dissolution, raising families’ quality of life, and contributing to social unity by extending various support services to families in vulnerable situations or crisis.

­­- The government organizes events to commemorate comfort women who were victims of the Japanese military. It organizes a national ceremony on August 14 every year, which is designated as a national day to commemorate comfort women. Through the Japanese Military Comfort Women Research Institute and other related organizations, it is supporting investigations and research of not just the issue of comfort women, but also violence under conflicts and womenʼs rights issues.

To achieve de facto gender equality in society Ministry of Gender Equality and Family

▪ Can the society be made safer by establishing gender equality? “ Place gender-equality policy officers in key government ministries, and enact the Violence against Women Act” -­­ The government will promote gender equality in the society by leading and coordinating gender equality policies, and ensuring closer public-private collaboration. It will increase public responsibility in shaping a social environment free of violence against women and mitigate public unrest.

42

43


To support various disadvantaged families to stabilize their lives and address discrimination Ministry of Gender Equality and Family ▪ How can different family forms be accepted and thrive together? “ Strongly enforce child support for single-parent families and increase support for multi-cultural families to raise their children”

­­- It will staff key government ministries with gender-equality policy officers to improve gender-related policies, perceptions, and practices. It will also improve gender impact analysis and assessment, and management of the gender-sensitive budget performance. ­­- It is implementing the five-year plan to increase the advance of women executives in the public sector, including government ministries, public institutions, schools, and government committees.

-­­ Single-parent families will see an increase in government child support, and the age limit for eligibility will be gradually raised, making raising a child not just a personal problem but a public responsibility. To enforce child support, institutional improvements will be made to allow for the income and assets of the non-custodial parent to be checked.

-­­ It is raising gender equality awareness through more gender equality training, and gender sensitivity training for those working in the press, media and other public services.

­­- Single-parent families with a teenage child and with the will to become self-sufficient are offered support in the form of education, employment, childcare, and selfsufficiency benefit. .

-­­ The government is doing the groundwork to prevent violence against women. As part of various measures taken to deal with this issue, it enacted the Violence against Women Act and established a basic plan in 2018. It is also working on punishments and ways to protect victims of new forms of violence against women, such as stalking and digital sexual crimes.

-­­ The government offers the ‘self-sufficiency support package for wedded immigrants’ and the ‘program to support the growth of multi-cultural children’ to help multicultural families become more self-sufficient and raise their children in a stable environment. It is also conducting education to raise public awareness of the multicultural society. -­­ It is preventing family dissolution, raising families’ quality of life, and contributing to social unity by extending various support services to families in vulnerable situations or crisis.

­­- The government organizes events to commemorate comfort women who were victims of the Japanese military. It organizes a national ceremony on August 14 every year, which is designated as a national day to commemorate comfort women. Through the Japanese Military Comfort Women Research Institute and other related organizations, it is supporting investigations and research of not just the issue of comfort women, but also violence under conflicts and womenʼs rights issues.

To achieve de facto gender equality in society Ministry of Gender Equality and Family

▪ Can the society be made safer by establishing gender equality? “ Place gender-equality policy officers in key government ministries, and enact the Violence against Women Act” -­­ The government will promote gender equality in the society by leading and coordinating gender equality policies, and ensuring closer public-private collaboration. It will increase public responsibility in shaping a social environment free of violence against women and mitigate public unrest.

42

43


Strategy

Building a Country Where Liberty, Creativity and Culture Thrive Question

What are the strategies to support enjoyment of culture and arts, sports, and tourism welfare? “ Expand policy financing and funding for the cultural content industry, increase fairness in the cultural industry ecosystem”

• In the modern society, people are both producers and consumers of cultural, artistic, and sporting activities. Recreation and leisure activities are key indicators of quality of life. In these times, the role of the government is becoming ever more important to make a cultural nation where people live a good life and enjoy freedom and innovation. • The government is striving to guarantee freedom of creation while shaping favorable conditions for people to enjoy cultural and arts programs. It is strengthening fairness in the cultural industry ecosystem and leading the spread of the Korean Wave in the world through increased cultural exchanges and cooperation. It is also looking into more opportunities for people to get involved in a sport, while promoting leisure, tourism, and recreation. • The government is striving to restore public trust in the cultural administrative system and promote the message of peace through inter-Korean exchanges in sports and cultural domains.

National Policy Tasks What is the government doing to achieve this? ▪ To usher in an era of cultural life so that everyone can enjoy culture in their everyday lives -Ministry of Culture, Sports and Tourism

To usher in an era of cultural life so that everyone can enjoy culture in their everyday lives Ministry of Culture, Sports and Tourism ▪ What are the policies to promote day-to-day cultural enjoyment at the local community level? “ Provide 100,000-won culture vouchers to low-income people, offer culture & arts education benefits to 3.6 million more people” - The government is pursuing policies to promote day-to-day cultural enjoyment at the local community level to promote the rights to cultural entitlement. It plans to increase the percentage of cultural and arts outings to 85% of the population and build 3,085 cultural facilities by 2022. To do so, it is supporting underprivileged people to enjoy culture, shaping favorable conditions for day-to-day cultural activities, preserving and making use of cultural heritage. These efforts would allow more people to enjoy culture and ensure equitable regional cultural development. - To ensure that people enjoy a basic cultural life, the government will gradually increase the amount of culture vouchers for low-income people. The annual amount will be increased from 80,000 won in 2019 to 100,000 won in 2021. To increase cultural awareness and competence, it will organize more cultural and arts education programs for every phase of the human life cycle (childhood, youth, adulthood, and senior years), spread the value of the humanities, and encourage reading. - To achieve equitable regional cultural development, the government will designate cultural cities and build cultural villages at the lower administrative levels. Surveys of unearthed cultural relics will be publicly managed, with an increasing number of annual field surveys and excavation work conducted until 2022. The legislation of the Cultural Asset Care Act (tentative name) will allow for more cultural relics to be conserved and traditional intangible assets preserved in their original form, and support public cultural enjoyment. Surveys and research will be organized on the Gaya Cultural Zone, which had been neglected in the past. To support these cultural initiatives, the government manages an annual funding plan to cover rising funding needs.

▪ To guarantee artists’ right of creation by improving their creative environment and strengthening

welfare -Ministry of Culture, Sports and Tourism

▪ To create a fair culture industry ecology and further spread Hallyu, or the Korean Wave, around

the world -Ministry of Culture, Sports and Tourism

▪ To guarantee the healthy development of the media -Korea Communications Commission ▪ To realize work-life balance for a better quality of life -Ministry of Employment and Labor ▪ To build a vibrant country where everyone can enjoy sports -Ministry of Culture, Sports and Tourism ▪ To expand tourism welfare and revitalize the tourism industry -Ministry of Culture, Sports and Tourism

44

45


Strategy

Building a Country Where Liberty, Creativity and Culture Thrive Question

What are the strategies to support enjoyment of culture and arts, sports, and tourism welfare? “ Expand policy financing and funding for the cultural content industry, increase fairness in the cultural industry ecosystem”

• In the modern society, people are both producers and consumers of cultural, artistic, and sporting activities. Recreation and leisure activities are key indicators of quality of life. In these times, the role of the government is becoming ever more important to make a cultural nation where people live a good life and enjoy freedom and innovation. • The government is striving to guarantee freedom of creation while shaping favorable conditions for people to enjoy cultural and arts programs. It is strengthening fairness in the cultural industry ecosystem and leading the spread of the Korean Wave in the world through increased cultural exchanges and cooperation. It is also looking into more opportunities for people to get involved in a sport, while promoting leisure, tourism, and recreation. • The government is striving to restore public trust in the cultural administrative system and promote the message of peace through inter-Korean exchanges in sports and cultural domains.

National Policy Tasks What is the government doing to achieve this? ▪ To usher in an era of cultural life so that everyone can enjoy culture in their everyday lives -Ministry of Culture, Sports and Tourism

To usher in an era of cultural life so that everyone can enjoy culture in their everyday lives Ministry of Culture, Sports and Tourism ▪ What are the policies to promote day-to-day cultural enjoyment at the local community level? “ Provide 100,000-won culture vouchers to low-income people, offer culture & arts education benefits to 3.6 million more people” - The government is pursuing policies to promote day-to-day cultural enjoyment at the local community level to promote the rights to cultural entitlement. It plans to increase the percentage of cultural and arts outings to 85% of the population and build 3,085 cultural facilities by 2022. To do so, it is supporting underprivileged people to enjoy culture, shaping favorable conditions for day-to-day cultural activities, preserving and making use of cultural heritage. These efforts would allow more people to enjoy culture and ensure equitable regional cultural development. - To ensure that people enjoy a basic cultural life, the government will gradually increase the amount of culture vouchers for low-income people. The annual amount will be increased from 80,000 won in 2019 to 100,000 won in 2021. To increase cultural awareness and competence, it will organize more cultural and arts education programs for every phase of the human life cycle (childhood, youth, adulthood, and senior years), spread the value of the humanities, and encourage reading. - To achieve equitable regional cultural development, the government will designate cultural cities and build cultural villages at the lower administrative levels. Surveys of unearthed cultural relics will be publicly managed, with an increasing number of annual field surveys and excavation work conducted until 2022. The legislation of the Cultural Asset Care Act (tentative name) will allow for more cultural relics to be conserved and traditional intangible assets preserved in their original form, and support public cultural enjoyment. Surveys and research will be organized on the Gaya Cultural Zone, which had been neglected in the past. To support these cultural initiatives, the government manages an annual funding plan to cover rising funding needs.

▪ To guarantee artists’ right of creation by improving their creative environment and strengthening

welfare -Ministry of Culture, Sports and Tourism

▪ To create a fair culture industry ecology and further spread Hallyu, or the Korean Wave, around

the world -Ministry of Culture, Sports and Tourism

▪ To guarantee the healthy development of the media -Korea Communications Commission ▪ To realize work-life balance for a better quality of life -Ministry of Employment and Labor ▪ To build a vibrant country where everyone can enjoy sports -Ministry of Culture, Sports and Tourism ▪ To expand tourism welfare and revitalize the tourism industry -Ministry of Culture, Sports and Tourism

44

45


To guarantee artists’ right of creation by improving their creative

To create a fair culture industry ecology and further spread Hallyu, or the

environment and strengthening welfare Ministry of Culture, Sports and Tourism

Korean Wave, around the world Ministry of Culture, Sports and Tourism

▪ How can the right to create and an environment conducive to creation be institutionally guaranteed for artists?

▪ How does the government support the Korean Wave and the development of the cultural content industry?

“ Make use of standard contracts mandatory in the culture and arts community, offer employment insurance for artists, and cover part of their insurance premiums”

“ Formulate and promote standard contracts by area of the cultural content industry, and foster new content industry marked by fusion of state-of-the-art technologies”

- The government is working on legislation pertaining to artistsʼ status and rights to ensure they can engage in creative activities in improved conditions. Employment insurance will be introduced for artists to help them out of blind spots in welfare. The government is also ensuring fair compensation for artists by promoting standard contracts and establishing stricter criteria for distribution of artistsʼ copyright profits.

- In view of creating a virtuous circle for the cultural content industry, the government is expanding policy financing for small- and medium-sized content companies, offering tailored assistance to phases of business growth, and making legislative and institutional improvements. In particular, to shape a fair environment for production and distribution, it created and disseminated standard contracts* that users can refer to. *46 standard contracts in eight areas, including film, mass culture, animation, broadcasting, and game

- To guarantee artists’ rights, the government announced the Fairness Charter in 2017, and is working on the enactment of a law pertaining to their status and rights in 2019. Also, since 2018, it has formulated and promoted use of standard contracts (performance, arts) and made it mandatory for those participating in governmentfunded projects (like the Culture and Arts Promotion Fund) to use the contracts. It is also important to guarantee welfare for artists. Through revision of the Employment Insurance Act and related rules and regulations, the government will institute employment insurance for artists in 2021 and cover part of the insurance premiums. - To stabilize the Culture and Arts Promotion Fund, the government will, in the short term, source from the general budget, lottery funds, tourism funds, and sports funds. In the mid- to long-term, it will secure a more stable source of funding by tapping into other funds or legally transferrable proceeds.

- Also, in line with the commercialization of 5G telecommunications and other related technologies, the government is increasing support for production of immersive content (virtual reality, augmented reality), and R&D of cultural technology, and development of specialists in cultural technology. - The government is offering a one-stop venue for export information to help outstanding local content find new international market. It is also making export consultation and marketing assistance available. Support is also given to promote Korean Wave overseas. This takes the form of two-way cultural exchange events: overseas Korean Wave communities, and Korean language and culture classes through the King Sejong Institute.

- In view of renewing the culture administrative system to be more people-centric, the government will ensure independence of funding organizations, raise transparency in screening, engage users in the policy decision- making process, and introduce a culture ombudsman program.

46

47


To guarantee artists’ right of creation by improving their creative

To create a fair culture industry ecology and further spread Hallyu, or the

environment and strengthening welfare Ministry of Culture, Sports and Tourism

Korean Wave, around the world Ministry of Culture, Sports and Tourism

▪ How can the right to create and an environment conducive to creation be institutionally guaranteed for artists?

▪ How does the government support the Korean Wave and the development of the cultural content industry?

“ Make use of standard contracts mandatory in the culture and arts community, offer employment insurance for artists, and cover part of their insurance premiums”

“ Formulate and promote standard contracts by area of the cultural content industry, and foster new content industry marked by fusion of state-of-the-art technologies”

- The government is working on legislation pertaining to artistsʼ status and rights to ensure they can engage in creative activities in improved conditions. Employment insurance will be introduced for artists to help them out of blind spots in welfare. The government is also ensuring fair compensation for artists by promoting standard contracts and establishing stricter criteria for distribution of artistsʼ copyright profits.

- In view of creating a virtuous circle for the cultural content industry, the government is expanding policy financing for small- and medium-sized content companies, offering tailored assistance to phases of business growth, and making legislative and institutional improvements. In particular, to shape a fair environment for production and distribution, it created and disseminated standard contracts* that users can refer to. *46 standard contracts in eight areas, including film, mass culture, animation, broadcasting, and game

- To guarantee artists’ rights, the government announced the Fairness Charter in 2017, and is working on the enactment of a law pertaining to their status and rights in 2019. Also, since 2018, it has formulated and promoted use of standard contracts (performance, arts) and made it mandatory for those participating in governmentfunded projects (like the Culture and Arts Promotion Fund) to use the contracts. It is also important to guarantee welfare for artists. Through revision of the Employment Insurance Act and related rules and regulations, the government will institute employment insurance for artists in 2021 and cover part of the insurance premiums. - To stabilize the Culture and Arts Promotion Fund, the government will, in the short term, source from the general budget, lottery funds, tourism funds, and sports funds. In the mid- to long-term, it will secure a more stable source of funding by tapping into other funds or legally transferrable proceeds.

- Also, in line with the commercialization of 5G telecommunications and other related technologies, the government is increasing support for production of immersive content (virtual reality, augmented reality), and R&D of cultural technology, and development of specialists in cultural technology. - The government is offering a one-stop venue for export information to help outstanding local content find new international market. It is also making export consultation and marketing assistance available. Support is also given to promote Korean Wave overseas. This takes the form of two-way cultural exchange events: overseas Korean Wave communities, and Korean language and culture classes through the King Sejong Institute.

- In view of renewing the culture administrative system to be more people-centric, the government will ensure independence of funding organizations, raise transparency in screening, engage users in the policy decision- making process, and introduce a culture ombudsman program.

46

47


To guarantee the healthy development of the media

To realize work-life balance for a better quality of life

Korea Communications Commission

Ministry of Employment and Labor

▪ What institutional arrangements are made to ensure media services for all?

▪ Can work-family balance be achieved for workers?

“ Commercialize smart sign language broadcast services in 2019 and distribute broadcast receivers to all low-income persons with audiovisual impairment by 2021”

“ Cut the annual working hours to 1,800 hours, double the amount of childcare leave benefits, and prohibit after-hour work requests”

- The goal is to guarantee universal rights to media services through increased public participation in the media and greater accessibility to broadcasting services for persons with disabilities. The government is shaping a win-win environment between broadcast companies and outsourced production companies, ensuring growth and a balanced development of the media industry, revitalizing regional broadcasting, and building a virtuous circle for the market to expand abroad with Korean Wave content and be internationally competitive.

- The government is enforcing the statutory hours of work and working to reduce working hours. Coupled with the expansion of childcare leave, these measures help workers enjoy work-family balance by exercising their right to rest. The government is institutionalizing the 52-hour workweek and working to cut the annual working hours to the 1,800-hour range by 2022. *Working hours in 2016: Korea 2,033, Mexico 2,348, Japan 1,724, OECD average 1,665

- The government is working to increase customized media education by life cycle, class, and region. To this end, it is establishing a system to support media education for all, building and expanding community media centers in metropolitan areas. By 2022, it will offer Internet ethics education to one million people. To ensure that persons with disabilities have access to television services, smart sign language broadcast services will be in general use in 2019, and broadcast receivers will be distributed to all low-income persons with audiovisual impairment by 2021. - To revitalize regional broadcasting services, the government will improve the governance structure of terrestrial broadcasting business entities by 2020 using the license renewal procedures, fund production and distribution of regional broadcasting, and increase the size of the Broadcasting and Communications Development Fund. For the growth and balanced development of the media market, it will support the commercialization of smart media services and one-person media services until 2021, continuously expanding the contents fund.

- In 2018, the government revised the Labor Standards Act to provide for the 52-hour workweek. It also significantly reduced the number of business categories designated as exceptions to the statutory working hours from 26 to five. - To guarantee workers time to take a rest in life, workers who have been on a job for less than two years will become eligible for more annual leave periods, and national holidays that apply only to public workers will also be extended to private sector workers. - As part of its efforts to increase childcare incentives for workers, the government doubled the amount of childcare leave benefits for the first three months in 2017 and introduced the childcare leave bonus program in 2018. The reduced-hour work for childcare can also be extended for up to an additional year. The maternity leave for the spouse was also extended from 3-5 days to ten days. Workers are now also allowed to claim reduced-hour works for reasons of family care, their own sickness or accident.

- S ince 2017, a pan-governmental plan has been in effect to shape a win-win environment between broadcast companies and outsourced production companies. To create content production funds and raise public concern in the broadcast advertising market, the government will improve the market for broadcast advertising and ensure that the sales of broadcast ads and sponsorship are reasonable and transparent.

48

49


To guarantee the healthy development of the media

To realize work-life balance for a better quality of life

Korea Communications Commission

Ministry of Employment and Labor

▪ What institutional arrangements are made to ensure media services for all?

▪ Can work-family balance be achieved for workers?

“ Commercialize smart sign language broadcast services in 2019 and distribute broadcast receivers to all low-income persons with audiovisual impairment by 2021”

“ Cut the annual working hours to 1,800 hours, double the amount of childcare leave benefits, and prohibit after-hour work requests”

- The goal is to guarantee universal rights to media services through increased public participation in the media and greater accessibility to broadcasting services for persons with disabilities. The government is shaping a win-win environment between broadcast companies and outsourced production companies, ensuring growth and a balanced development of the media industry, revitalizing regional broadcasting, and building a virtuous circle for the market to expand abroad with Korean Wave content and be internationally competitive.

- The government is enforcing the statutory hours of work and working to reduce working hours. Coupled with the expansion of childcare leave, these measures help workers enjoy work-family balance by exercising their right to rest. The government is institutionalizing the 52-hour workweek and working to cut the annual working hours to the 1,800-hour range by 2022. *Working hours in 2016: Korea 2,033, Mexico 2,348, Japan 1,724, OECD average 1,665

- The government is working to increase customized media education by life cycle, class, and region. To this end, it is establishing a system to support media education for all, building and expanding community media centers in metropolitan areas. By 2022, it will offer Internet ethics education to one million people. To ensure that persons with disabilities have access to television services, smart sign language broadcast services will be in general use in 2019, and broadcast receivers will be distributed to all low-income persons with audiovisual impairment by 2021. - To revitalize regional broadcasting services, the government will improve the governance structure of terrestrial broadcasting business entities by 2020 using the license renewal procedures, fund production and distribution of regional broadcasting, and increase the size of the Broadcasting and Communications Development Fund. For the growth and balanced development of the media market, it will support the commercialization of smart media services and one-person media services until 2021, continuously expanding the contents fund.

- In 2018, the government revised the Labor Standards Act to provide for the 52-hour workweek. It also significantly reduced the number of business categories designated as exceptions to the statutory working hours from 26 to five. - To guarantee workers time to take a rest in life, workers who have been on a job for less than two years will become eligible for more annual leave periods, and national holidays that apply only to public workers will also be extended to private sector workers. - As part of its efforts to increase childcare incentives for workers, the government doubled the amount of childcare leave benefits for the first three months in 2017 and introduced the childcare leave bonus program in 2018. The reduced-hour work for childcare can also be extended for up to an additional year. The maternity leave for the spouse was also extended from 3-5 days to ten days. Workers are now also allowed to claim reduced-hour works for reasons of family care, their own sickness or accident.

- S ince 2017, a pan-governmental plan has been in effect to shape a win-win environment between broadcast companies and outsourced production companies. To create content production funds and raise public concern in the broadcast advertising market, the government will improve the market for broadcast advertising and ensure that the sales of broadcast ads and sponsorship are reasonable and transparent.

48

49


To build a vibrant country where everyone can enjoy sports Ministry of Culture, Sports and Tourism

▪ How can a vibrant sports and cultural content market be promoted? “ Operate One Sports Club for Every City, County, and District, expand publicly-run sports facilities, develop and distribute Top Ten Taekwondo cultural content” - The government will create an environment where anyone can enjoy sports. It will raise the rate of people engaging in a sport (engaging in sporting activities at least once a week) from 59.5% in 2016 to 64.5% in 2022. By successfully hosting the Pyeongchang Olympic Winter Games and the Paralympic Winter Games, the nation’s standing was raised and people got stronger together. The globalization of Taekwondo, which is Korea’s unique martial arts and sport, will contribute to the global promotion of the Korean Wave. As such, the sport will be fostered as a key cultural asset of Korea. - The government is promoting sports for all by building sports facilities, fostering instructors, and developing tailored sports programs for each phase of the human life cycle. It will realize the One Sports Club for every City, County, and District program, expand publicly-run sports facilities, and hire more instructors.

information system, improving transport for the convenience of international tourists, and operating an online platform to offer individual travelers customized tour recommendations and information. - In view of strengthening the competitiveness of the tourism sector, the government established and is running the National Tourism Strategy Conference as a wholeof-government body for tourism policy discussions. To create more tourism jobs, it established a tourism industry fund to invest in content development projects. By 2022, it will identify and support 800 innovative tourism venture businesses and 1,125 tourism dure programs, which are tourism initiatives managed by local residents. - The government will diversify inbound tourists with the goal of attracting 8.5 million tourists from three strategic markets (Japan, the Great China region except for China, and Africa & the Middle East) by 2022. As part of these efforts, it is organizing largescale culture and tourism fairs (Korea Culture & Tourism Festival) in those markets, developing customized tourism products, producing promotional videos for inbound tourists, and improving the visa system. - The government will attract more inbound tourists and drive a qualitative growth of the tourism sector by fostering the MICE industry, cruise industry, medical and wellness tourism, which are high-value-added tourism sectors.

- To support a new leap and sustained growth of Taekwondo, the top ten Taekwondo cultural content was identified as policy tasks for a phased implementation until 2022.

To expand tourism welfare and revitalize the tourism industry Ministry of Culture, Sports and Tourism

▪ How will the tourism industry for local and international tourists be transformed? “ Designate substitute days for all holidays that fall on a weekend by 2022, develop attractive ‘Glocal’ tourist sites for foreign tourists” - To encourage people to enjoy vacation and tourism, the government will introduce worker leave support programs and create a more convenient tourism environment, including annual funding of 100 “open tourist sites” for people with disabilities, seniors, and families with a baby or infant until 2022. - In line with changes in the tourism environment (a rise in individual tourists and advancement in IT technologies), the government is reorganizing the tourism

50

51


To build a vibrant country where everyone can enjoy sports Ministry of Culture, Sports and Tourism

▪ How can a vibrant sports and cultural content market be promoted? “ Operate One Sports Club for Every City, County, and District, expand publicly-run sports facilities, develop and distribute Top Ten Taekwondo cultural content” - The government will create an environment where anyone can enjoy sports. It will raise the rate of people engaging in a sport (engaging in sporting activities at least once a week) from 59.5% in 2016 to 64.5% in 2022. By successfully hosting the Pyeongchang Olympic Winter Games and the Paralympic Winter Games, the nation’s standing was raised and people got stronger together. The globalization of Taekwondo, which is Korea’s unique martial arts and sport, will contribute to the global promotion of the Korean Wave. As such, the sport will be fostered as a key cultural asset of Korea. - The government is promoting sports for all by building sports facilities, fostering instructors, and developing tailored sports programs for each phase of the human life cycle. It will realize the One Sports Club for every City, County, and District program, expand publicly-run sports facilities, and hire more instructors.

information system, improving transport for the convenience of international tourists, and operating an online platform to offer individual travelers customized tour recommendations and information. - In view of strengthening the competitiveness of the tourism sector, the government established and is running the National Tourism Strategy Conference as a wholeof-government body for tourism policy discussions. To create more tourism jobs, it established a tourism industry fund to invest in content development projects. By 2022, it will identify and support 800 innovative tourism venture businesses and 1,125 tourism dure programs, which are tourism initiatives managed by local residents. - The government will diversify inbound tourists with the goal of attracting 8.5 million tourists from three strategic markets (Japan, the Great China region except for China, and Africa & the Middle East) by 2022. As part of these efforts, it is organizing largescale culture and tourism fairs (Korea Culture & Tourism Festival) in those markets, developing customized tourism products, producing promotional videos for inbound tourists, and improving the visa system. - The government will attract more inbound tourists and drive a qualitative growth of the tourism sector by fostering the MICE industry, cruise industry, medical and wellness tourism, which are high-value-added tourism sectors.

- To support a new leap and sustained growth of Taekwondo, the top ten Taekwondo cultural content was identified as policy tasks for a phased implementation until 2022.

To expand tourism welfare and revitalize the tourism industry Ministry of Culture, Sports and Tourism

▪ How will the tourism industry for local and international tourists be transformed? “ Designate substitute days for all holidays that fall on a weekend by 2022, develop attractive ‘Glocal’ tourist sites for foreign tourists” - To encourage people to enjoy vacation and tourism, the government will introduce worker leave support programs and create a more convenient tourism environment, including annual funding of 100 “open tourist sites” for people with disabilities, seniors, and families with a baby or infant until 2022. - In line with changes in the tourism environment (a rise in individual tourists and advancement in IT technologies), the government is reorganizing the tourism

50

51


Government Goal

A Peaceful and Prosperous Korean Peninsula

Strategy Ensuring Strong National Security and Responsible Defense Strategy Fostering Inter-Korean Reconciliation and Cooperation as well as

Denuclearization of the Korean Peninsula

Strategy Reinforcing International Cooperation through Diplomacy


Government Goal

A Peaceful and Prosperous Korean Peninsula

Strategy Ensuring Strong National Security and Responsible Defense Strategy Fostering Inter-Korean Reconciliation and Cooperation as well as

Denuclearization of the Korean Peninsula

Strategy Reinforcing International Cooperation through Diplomacy


Strategy

Ensuring Strong National Security and Responsible Defense

National Policy Tasks What agenda are undertaken by the government to this end? ▪ To strengthen response capability against asymmetric threats including North Koreaʼs nuclear

weapons -Ministry of National Defense

▪ To ensure early transition of wartime OPCON on the basis of robust ROK-U.S. alliance -Ministry of National Defense

▪ To strongly push ahead with the Defense Reform and the civilianization of the Ministry of Question

What does Responsible Defense to defend the strength of the Republic of Korea mean? “ To ensure early transition of wartime Operational Control (OPCON) based on the ROK-U.S. alliance, actively promote the Defense Reform 2.0, develop state-of-the-art defense industry of increased transparency and efficiency, and maintain optimal level of combat capability through

National Defense -Ministry of National Defense

▪ To root out corruption related to defense acquisition programs and nurture the defense industry

that corresponds to the Fourth Industrial Revolution

-Ministry of National Defense, Defense Acquisition Program Administration

▪ To ensure the human rights of military personnel and drastically improve military service

conditions -Ministry of National Defense, Ministry of Unification

realistic training”

• Amidst the stern atmosphere of the international community, the final responsibility of protecting one’s nation lies in the nation itself, and this absolutely requires the establishment of strong national security system based on responsible defense. • The strategy of the Moon Jae-in Administration encompasses the improvements in response capability against the North Korean threats and the mid- to long-term constitution of our national security system. The government is striving to build the response capability against North Korea’s asymmetric threats including nuclear weapons, missiles and cyber operations. Also, on the basis of robust ROK-U.S. alliance, it is establishing a new ROK-led combined defense system through an early transition of wartime operational control. The Defense Reform in the military, such as its personnel and structural change, and improved work conditions for service men and women will make the military stronger and more competent of victory in battlefields of the future. • The government is working on building the state-of-the-art digital forces and the smart national defense through increased transparency and efficiency in the defense industry, and enabling the defense industry to prepare and lead the Fourth Industrial Revolution.

54

To strengthen response capability against asymmetric threats including North Koreaʼs nuclear weapons Ministry of National Defense ▪ What are the response measures against North Korea’s nuclear weapons, missiles and cyber threats? “ Expand ‘Strategic Target Strike’ and ‘Korean Air and Missile Defense (KAMD) System’ and build key capabilities needed in early stage” -­­ The goal is to establish a “response system against North Korea’s nuclear weapons and WMD (Weapons of Mass Destruction) threats” and enhance the cyber security response capability by securing adequate level of defense budget. -­­ The necessary requirements will be reflected in the defense budget to determine the adequate rate of budget increase. Expenditure performance will be improved to the utmost through financial reform and efficient budget execution. -­­ The government is working on early establishment of the key capabilities for the nation’s response system against North Korea’s nuclear weapons and WMD. The ‘Strategic Target Strike’ is a system integrating deterrence by denial and deterrence by punishment in order to deter and counter asymmetric threats from all directions. To this end, the ROK Armed Forces is expanding forces equipped with stand-off surveillance and precision strike capabilities. Also, the ‘Korean Air and Missile Defense (KAMD)’ system will provide multi-layered defense optimized for the battlefield environment of the Korean Peninsula, with increased coverage and enhanced interception capability. 55


Strategy

Ensuring Strong National Security and Responsible Defense

National Policy Tasks What agenda are undertaken by the government to this end? ▪ To strengthen response capability against asymmetric threats including North Koreaʼs nuclear

weapons -Ministry of National Defense

▪ To ensure early transition of wartime OPCON on the basis of robust ROK-U.S. alliance -Ministry of National Defense

▪ To strongly push ahead with the Defense Reform and the civilianization of the Ministry of Question

What does Responsible Defense to defend the strength of the Republic of Korea mean? “ To ensure early transition of wartime Operational Control (OPCON) based on the ROK-U.S. alliance, actively promote the Defense Reform 2.0, develop state-of-the-art defense industry of increased transparency and efficiency, and maintain optimal level of combat capability through

National Defense -Ministry of National Defense

▪ To root out corruption related to defense acquisition programs and nurture the defense industry

that corresponds to the Fourth Industrial Revolution

-Ministry of National Defense, Defense Acquisition Program Administration

▪ To ensure the human rights of military personnel and drastically improve military service

conditions -Ministry of National Defense, Ministry of Unification

realistic training”

• Amidst the stern atmosphere of the international community, the final responsibility of protecting one’s nation lies in the nation itself, and this absolutely requires the establishment of strong national security system based on responsible defense. • The strategy of the Moon Jae-in Administration encompasses the improvements in response capability against the North Korean threats and the mid- to long-term constitution of our national security system. The government is striving to build the response capability against North Korea’s asymmetric threats including nuclear weapons, missiles and cyber operations. Also, on the basis of robust ROK-U.S. alliance, it is establishing a new ROK-led combined defense system through an early transition of wartime operational control. The Defense Reform in the military, such as its personnel and structural change, and improved work conditions for service men and women will make the military stronger and more competent of victory in battlefields of the future. • The government is working on building the state-of-the-art digital forces and the smart national defense through increased transparency and efficiency in the defense industry, and enabling the defense industry to prepare and lead the Fourth Industrial Revolution.

54

To strengthen response capability against asymmetric threats including North Koreaʼs nuclear weapons Ministry of National Defense ▪ What are the response measures against North Korea’s nuclear weapons, missiles and cyber threats? “ Expand ‘Strategic Target Strike’ and ‘Korean Air and Missile Defense (KAMD) System’ and build key capabilities needed in early stage” -­­ The goal is to establish a “response system against North Korea’s nuclear weapons and WMD (Weapons of Mass Destruction) threats” and enhance the cyber security response capability by securing adequate level of defense budget. -­­ The necessary requirements will be reflected in the defense budget to determine the adequate rate of budget increase. Expenditure performance will be improved to the utmost through financial reform and efficient budget execution. -­­ The government is working on early establishment of the key capabilities for the nation’s response system against North Korea’s nuclear weapons and WMD. The ‘Strategic Target Strike’ is a system integrating deterrence by denial and deterrence by punishment in order to deter and counter asymmetric threats from all directions. To this end, the ROK Armed Forces is expanding forces equipped with stand-off surveillance and precision strike capabilities. Also, the ‘Korean Air and Missile Defense (KAMD)’ system will provide multi-layered defense optimized for the battlefield environment of the Korean Peninsula, with increased coverage and enhanced interception capability. 55


-­­ The North Korea Policy Bureau was newly established in the Ministry of National Defense to support a more efficient government response to issues related to North Korea, including its nuclear weapons and missile threats, inter-Korean military talks, and military trust-building efforts. The Nuclear and WMD Response Center of the ROK Joint Chiefs of Staff (JCS) will be further developed in line with the mid- to long-term reorganization of military units.

-­­ In 2019, both sides conducted the Future CFC’s Initial Operational Capability (IOC) certification assessment. And based on the certification assessment results, they will pursue an assessment of Full Operational Capability (FOC) for the Future CFC in 2020. In view of a strong post-OPCON transition combined defense system, the ROK military will continue to pursue a seamless and systematic OPCON transition by working on the tasks identified during the bilateral certifications.

-­­ In view of keeping cyberspace safe and securing the capability to conduct cyber warfare, the government plans to reinforce the cyber security control tower led by the Office of National Security and develop a systematic cyber security execution system.

-­­ The ROK and the U.S. are preparing for the wartime OPCON transition in close consultation with each other, so that the combined defense posture can be further strengthened. They will continue to strive to develop the ROK-U.S. alliance to be mutually complementary and future-oriented after the transition.

To ensure early transition of wartime OPCON on the basis of robust ROK-U.S. alliance Ministry of National Defense

To strongly push ahead with the Defense Reform and the civilianization of the Ministry of National Defense Ministry of National Defense

▪ Is wartime OPCON being transitioned to the ROK military? “ An expedited transition of wartime OPCON in a systematic as well as proactive manner based on robust ROK-U.S. Alliance” -­­ The ROK and the U.S. are preparing for a new ROK-led combined defense system based on the ʻConditions-based OPCON Transition Planʼ bilaterally agreed upon in 2015. The OPCON transition signals a new beginning for the Korean military; it helps maintain a defense posture in which the ROK is responsible for its own defense and upholds the public’s expectations of a military that reflects the national power and military strength. -­­ In 2018, the ROK and the U.S. agreed on their combined defense system after OPCON transition, where the Future Combined Forces Command (Future CFC) has a General or an Admiral of ROK as its Commander and a General or an Admiral of U.S. as its Deputy Commander. Consequently, the wartime operational control will be exercised by the CFC Commander who is a General or an Admiral of ROK. -­­ In view of ensuring a successful transition of wartime operational control to a ROKcommanded Future CFC, the ROK and the U.S. are bilaterally and annually assessing whether the conditions for OPCON transition have been met based on the bilaterally agreed ʻconditions-based OPCON transition plan,’ which comprises three conditions including military capabilities and the security environment. In line with the Defense Reform 2.0, the ROK military is acquiring defense capabilities necessary to lead the future combined defense system and pursuing wartime OPCON transition in a systematic as well as proactive manner.

56

▪ What are the policies for national defense reform and civilian control of the military? “ Cut the number of standing troops to 500,000 by 2022, develop an elite military using advanced technology, and establish effective civilian control of the Ministry of National Defense” -­­ To forcefully implement defense reform, the Defense Reform 2.0 Basic Plan was established through pan-governmental coordination including the National Defense Reform Task Force in the Presidential Office and the National Defense Reform Group in the MND, and collecting opinions from experts. -­­ According to the plan, the government is working actively on 42 action items in four areas, which are ▲ developing a military structure based on state-of-the-art science and technology against omnidirectional security threats, ▲ realizing a defense management system marked by efficiency, reliability, and openness, ▲ developing a barrack culture that meets public expectations to tackle human right issues and raise morale, and ▲ making the defense industry internationally competitive through increased efficiency, transparency, and professionalism. ­­- The government is executing the plan to pare down the number of active-duty troops to 500,000 by 2022. Despite the overall troop drawdown, the defense manpower structure is re-designed to focus on operations and combats, with more officers brought in to fill combat positions and more civilian workers to fill noncombat positions.

57


-­­ The North Korea Policy Bureau was newly established in the Ministry of National Defense to support a more efficient government response to issues related to North Korea, including its nuclear weapons and missile threats, inter-Korean military talks, and military trust-building efforts. The Nuclear and WMD Response Center of the ROK Joint Chiefs of Staff (JCS) will be further developed in line with the mid- to long-term reorganization of military units.

-­­ In 2019, both sides conducted the Future CFC’s Initial Operational Capability (IOC) certification assessment. And based on the certification assessment results, they will pursue an assessment of Full Operational Capability (FOC) for the Future CFC in 2020. In view of a strong post-OPCON transition combined defense system, the ROK military will continue to pursue a seamless and systematic OPCON transition by working on the tasks identified during the bilateral certifications.

-­­ In view of keeping cyberspace safe and securing the capability to conduct cyber warfare, the government plans to reinforce the cyber security control tower led by the Office of National Security and develop a systematic cyber security execution system.

-­­ The ROK and the U.S. are preparing for the wartime OPCON transition in close consultation with each other, so that the combined defense posture can be further strengthened. They will continue to strive to develop the ROK-U.S. alliance to be mutually complementary and future-oriented after the transition.

To ensure early transition of wartime OPCON on the basis of robust ROK-U.S. alliance Ministry of National Defense

To strongly push ahead with the Defense Reform and the civilianization of the Ministry of National Defense Ministry of National Defense

▪ Is wartime OPCON being transitioned to the ROK military? “ An expedited transition of wartime OPCON in a systematic as well as proactive manner based on robust ROK-U.S. Alliance” -­­ The ROK and the U.S. are preparing for a new ROK-led combined defense system based on the ʻConditions-based OPCON Transition Planʼ bilaterally agreed upon in 2015. The OPCON transition signals a new beginning for the Korean military; it helps maintain a defense posture in which the ROK is responsible for its own defense and upholds the public’s expectations of a military that reflects the national power and military strength. -­­ In 2018, the ROK and the U.S. agreed on their combined defense system after OPCON transition, where the Future Combined Forces Command (Future CFC) has a General or an Admiral of ROK as its Commander and a General or an Admiral of U.S. as its Deputy Commander. Consequently, the wartime operational control will be exercised by the CFC Commander who is a General or an Admiral of ROK. -­­ In view of ensuring a successful transition of wartime operational control to a ROKcommanded Future CFC, the ROK and the U.S. are bilaterally and annually assessing whether the conditions for OPCON transition have been met based on the bilaterally agreed ʻconditions-based OPCON transition plan,’ which comprises three conditions including military capabilities and the security environment. In line with the Defense Reform 2.0, the ROK military is acquiring defense capabilities necessary to lead the future combined defense system and pursuing wartime OPCON transition in a systematic as well as proactive manner.

56

▪ What are the policies for national defense reform and civilian control of the military? “ Cut the number of standing troops to 500,000 by 2022, develop an elite military using advanced technology, and establish effective civilian control of the Ministry of National Defense” -­­ To forcefully implement defense reform, the Defense Reform 2.0 Basic Plan was established through pan-governmental coordination including the National Defense Reform Task Force in the Presidential Office and the National Defense Reform Group in the MND, and collecting opinions from experts. -­­ According to the plan, the government is working actively on 42 action items in four areas, which are ▲ developing a military structure based on state-of-the-art science and technology against omnidirectional security threats, ▲ realizing a defense management system marked by efficiency, reliability, and openness, ▲ developing a barrack culture that meets public expectations to tackle human right issues and raise morale, and ▲ making the defense industry internationally competitive through increased efficiency, transparency, and professionalism. ­­- The government is executing the plan to pare down the number of active-duty troops to 500,000 by 2022. Despite the overall troop drawdown, the defense manpower structure is re-designed to focus on operations and combats, with more officers brought in to fill combat positions and more civilian workers to fill noncombat positions.

57


-­­ The Armed Forces would take advantage of advanced military technologies to cope with changing modern warfare. From October 1, 2018, the length of mandatory military service for draftees was shortened to reduce the burden of military service on young people. The early release of military personnel would also contribute to more efficient use of national human resources. To secure the necessary military manpower, alternate services would be gradually reduced or abolished in close consultation with the relevant ministries. To counter the cut of active-duty troops and the shortened length of service, the capability of the reserve force will be enhanced by taking advantage of technological advancements in reserve force training and raising compensation for reserve training to realistic levels. -­­ The principle of civilian control of the military is reaffirmed, and effective ways to achieve civilian control of the Ministry of National Defense is being discussed. Also, to achieve judicial reform in the military, the trial examiner system will be replaced with the Military Judge Personnel Committee to make military courts more independent. -­­ The relocation of military airports and facilities will reinforce national defense strength and reduce public inconvenience.

-­­ To pursue a more efficient management of defense-related programs, the Ministry of National Defense and the Defense Acquisition Program Administration jointly established the Defense Acquisition Program Council. Also, the new Defense Acquisition Information System improves the defense acquisition system as a whole. -­­ Conditions are shaped to strengthen the competitiveness of the defense industry and develop indigenous, state- of-the-art weapons. For this purpose, the defense R&D planning system is improved, while efforts are made to bring national R&D competence into the defense domain. To advance the defense industry, civil-military fusion is encouraged through bold transfer of defense R&D intellectual property rights to the private sector. The defense R&D program is improved to create an incentivebased eco-system for the industry. The program is reorganized to cope with the Fourth Industrial Revolution and other key technological changes. -­­ The government is paving the way for exports by nurturing defense industry SMEs and venture businesses, and creating quality jobs through the expansion of defense industry infrastructure, so that the industry can turn into the one driven by export. -­­ The government supports a more vital private sector by encouraging performancebased logistics (PBL) and other forms of civil-military cooperation.

To root out corruption related to defense acquisition programs and nurture the defense industry that corresponds to the Fourth Industrial Revolution Ministry of National Defense, Defense Acquisition Program Administration

▪ What are the strategies to make the defense industry free of corruption in the future? “ Improve laws and regulations to punish corruption in defense acquisition programs, and reinforce evaluation and education system to prevent corruption” -­­ Eradicating corruption in the defense industry and establishing an efficient defense acquisition system are the first steps towards restoring public trust in the military. The future defense industry may become a source of added economic and industrial value if defense companies can strengthen their competitiveness through defense R&D in advanced weapons system and create more jobs. -­­ First, corruption must be strictly punished and an anti-corruption system must be in place. The laws and regulations related to punishment are planned to be and more robust assessment and training are to be implemented to prevent corruption at the source. A clean defense acquisition system is expected to contribute to enhanced transparency, professionalism, efficiency, and competitiveness throughout the entire acquisition process. 58

To ensure the human rights of military personnel and drastically improve military service conditions Ministry of National Defense, Ministry of Unification ▪ What is being done institutionally to improve military service conditions, human rights in the military, and equity in military service? “ Raise enlisted men’s pay to up to 50% of the 2017 minimum wage by 2022, staff military human rights protectors, and increase the number of service women” ­­- The government aims to improve the working conditions of career soldiers and those serving compulsory military service, and guarantee human rights in the military. By instituting fair military services, it will eradicate draft evasion by those who are under the public eye. It will also raise morale in the military and regain public trust by establishing a military service management system. -­­ The policy to gradually raise enlisted men’s pay to up to 50% of the 2017 minimum wage by 2022 is executed as planned. The government is working indemnity insurance and other policies to guarantee service members who get injured on official duty full coverage of the cost of treatment received in private hospitals, regardless of the severity of injury. 59


-­­ The Armed Forces would take advantage of advanced military technologies to cope with changing modern warfare. From October 1, 2018, the length of mandatory military service for draftees was shortened to reduce the burden of military service on young people. The early release of military personnel would also contribute to more efficient use of national human resources. To secure the necessary military manpower, alternate services would be gradually reduced or abolished in close consultation with the relevant ministries. To counter the cut of active-duty troops and the shortened length of service, the capability of the reserve force will be enhanced by taking advantage of technological advancements in reserve force training and raising compensation for reserve training to realistic levels. -­­ The principle of civilian control of the military is reaffirmed, and effective ways to achieve civilian control of the Ministry of National Defense is being discussed. Also, to achieve judicial reform in the military, the trial examiner system will be replaced with the Military Judge Personnel Committee to make military courts more independent. -­­ The relocation of military airports and facilities will reinforce national defense strength and reduce public inconvenience.

-­­ To pursue a more efficient management of defense-related programs, the Ministry of National Defense and the Defense Acquisition Program Administration jointly established the Defense Acquisition Program Council. Also, the new Defense Acquisition Information System improves the defense acquisition system as a whole. -­­ Conditions are shaped to strengthen the competitiveness of the defense industry and develop indigenous, state- of-the-art weapons. For this purpose, the defense R&D planning system is improved, while efforts are made to bring national R&D competence into the defense domain. To advance the defense industry, civil-military fusion is encouraged through bold transfer of defense R&D intellectual property rights to the private sector. The defense R&D program is improved to create an incentivebased eco-system for the industry. The program is reorganized to cope with the Fourth Industrial Revolution and other key technological changes. -­­ The government is paving the way for exports by nurturing defense industry SMEs and venture businesses, and creating quality jobs through the expansion of defense industry infrastructure, so that the industry can turn into the one driven by export. -­­ The government supports a more vital private sector by encouraging performancebased logistics (PBL) and other forms of civil-military cooperation.

To root out corruption related to defense acquisition programs and nurture the defense industry that corresponds to the Fourth Industrial Revolution Ministry of National Defense, Defense Acquisition Program Administration

▪ What are the strategies to make the defense industry free of corruption in the future? “ Improve laws and regulations to punish corruption in defense acquisition programs, and reinforce evaluation and education system to prevent corruption” -­­ Eradicating corruption in the defense industry and establishing an efficient defense acquisition system are the first steps towards restoring public trust in the military. The future defense industry may become a source of added economic and industrial value if defense companies can strengthen their competitiveness through defense R&D in advanced weapons system and create more jobs. -­­ First, corruption must be strictly punished and an anti-corruption system must be in place. The laws and regulations related to punishment are planned to be and more robust assessment and training are to be implemented to prevent corruption at the source. A clean defense acquisition system is expected to contribute to enhanced transparency, professionalism, efficiency, and competitiveness throughout the entire acquisition process. 58

To ensure the human rights of military personnel and drastically improve military service conditions Ministry of National Defense, Ministry of Unification ▪ What is being done institutionally to improve military service conditions, human rights in the military, and equity in military service? “ Raise enlisted men’s pay to up to 50% of the 2017 minimum wage by 2022, staff military human rights protectors, and increase the number of service women” ­­- The government aims to improve the working conditions of career soldiers and those serving compulsory military service, and guarantee human rights in the military. By instituting fair military services, it will eradicate draft evasion by those who are under the public eye. It will also raise morale in the military and regain public trust by establishing a military service management system. -­­ The policy to gradually raise enlisted men’s pay to up to 50% of the 2017 minimum wage by 2022 is executed as planned. The government is working indemnity insurance and other policies to guarantee service members who get injured on official duty full coverage of the cost of treatment received in private hospitals, regardless of the severity of injury. 59


­­- Military personnel will receive state support for college credits received while serving in the military or for other self-development efforts. The quality of meal services will also be raised by improving the military meal service system. -­­ The National Human Rights Commission will be staffed with military human rights protectors, and institutional improvements will be made in support of fact-finding investigations into questionable deaths in the military. By 2022, the proportion of service women will be increased to 8.8% of all commissioned and non-commissioned officers. More key positions in policy and combat units will go to women service personnel. The government is also making institutional improvements to support work-family balance for both men and women service members, promote military organizations that are free from sexual violence, and make the workplace better by building more essential facilities.

Strategy

Fostering Inter-Korean Reconciliation and Cooperation as well as Denuclearization of the Korean Peninsula Question

Could there be peace and reconciliation in the Korean Peninsula? “ Induce North Korea to the dialogue table, and pursue denuclearization and establishment of a peace regime in a comprehensive manner”

• North Korea’s nuclear and missile threats deepen the security crisis in the nation and pose a serious challenge to peace and stability of the international community. • The government, together with the international community, is seeking to bring North Korea to the dialogue table through various means including dialogue and sanctions, and to resolve the North Korean nuclear issue and build permanent peace on the Korean Peninsula by pursuing North Korean denuclearization and establishment of a peace regime in a comprehensive manner. • T he government plans to resume inter-Korean dialogue and exchanges to institutionalize inter-Korean agreements and establish new inter-Korean relations. The goal is to promote the “New Economic Initiative on the Korean Peninsula” in full swing to create future growth engine of Korean economy and unify economies of South and North Korea. Also, efforts must be taken to recover national homogeneity of the South and North Korean people by resolving humanitarian issues including separated families, and promote inter-Korean exchange in various fields. • The government is working to expand public consensus on unification through bipartisan cooperation and public support for North Korea policies. It is working to establish and implement North Korea policies of national integration through public engagement.

60

61


­­- Military personnel will receive state support for college credits received while serving in the military or for other self-development efforts. The quality of meal services will also be raised by improving the military meal service system. -­­ The National Human Rights Commission will be staffed with military human rights protectors, and institutional improvements will be made in support of fact-finding investigations into questionable deaths in the military. By 2022, the proportion of service women will be increased to 8.8% of all commissioned and non-commissioned officers. More key positions in policy and combat units will go to women service personnel. The government is also making institutional improvements to support work-family balance for both men and women service members, promote military organizations that are free from sexual violence, and make the workplace better by building more essential facilities.

Strategy

Fostering Inter-Korean Reconciliation and Cooperation as well as Denuclearization of the Korean Peninsula Question

Could there be peace and reconciliation in the Korean Peninsula? “ Induce North Korea to the dialogue table, and pursue denuclearization and establishment of a peace regime in a comprehensive manner”

• North Korea’s nuclear and missile threats deepen the security crisis in the nation and pose a serious challenge to peace and stability of the international community. • The government, together with the international community, is seeking to bring North Korea to the dialogue table through various means including dialogue and sanctions, and to resolve the North Korean nuclear issue and build permanent peace on the Korean Peninsula by pursuing North Korean denuclearization and establishment of a peace regime in a comprehensive manner. • T he government plans to resume inter-Korean dialogue and exchanges to institutionalize inter-Korean agreements and establish new inter-Korean relations. The goal is to promote the “New Economic Initiative on the Korean Peninsula” in full swing to create future growth engine of Korean economy and unify economies of South and North Korea. Also, efforts must be taken to recover national homogeneity of the South and North Korean people by resolving humanitarian issues including separated families, and promote inter-Korean exchange in various fields. • The government is working to expand public consensus on unification through bipartisan cooperation and public support for North Korea policies. It is working to establish and implement North Korea policies of national integration through public engagement.

60

61


National Policy Tasks What effort is the government making to achieve this? ▪ To realize peace economy by promoting the “New Economic Initiative on the Korean Peninsula” -Ministry of Unification

▪ To sign an inter-Korean basic agreement and redefine inter-Korean relations -Ministry of Unification ▪ To resolve humanitarian issues including North Korean human rights and separated families -Ministry of Unification

▪ To improve inter-Korean relations through reinvigorated exchanges -Ministry of Unification ▪ To create a public consensus on unification and conclude the signing of the National Unification

Contract -Ministry of Unification ▪ Peaceful resolution of the North Korean nuclear issue and establishment of a peace regime on the Korean Peninsula -Ministry of Foreign Affairs

To realize peace economy by promoting the “New Economic Initiative on the Korean Peninsula” Ministry of Unification ▪ Can South and North Korea create a unified market? “ Realize a peace economy through the New Economic Initiative for the Korean Peninsula” - Increased economic cooperation between the two Koreas will establish the foundation for economic reunification, creating new jobs and raising the economic growth rate. The realization of a peace economy based on the New Economic Initiative will lay the basis for the Korean Peninsula to rise as a hub for economic cooperation in Northeast Asia. - The concept of the New Economic Initiative for the Korean Peninsula is to secure new growth engine through three major economic belts and to lay the foundation for economic unification through reciprocal cooperation between South and North Korea. The Pan East Sea Energy and Natural Resources Belt is designed to expand the range of cooperation on the east coast and develop a constructive axis of cooperation connecting South Korea, North Korea, China, and Russia. The belt will be developed based on energy cooperation with Russia (gas, etc.) and joint development of mineral resources (zinc, magnesite, etc.) in the Dancheon Special Economic Zone. The Pan Yellow Sea Manufacturing and Logistics Belt is designed to leverage already existing infrastructure between the South and the North including the large population and industrial facilities; the geographical proximity of Seoul and Pyeongyang in the western axis; the trade volume among the two Koreas and China, and its complementary nature; and the innovation in combined logistics resulting from advances in China’s Belt and Road Initiative. The DMZ Peace Belt in the border area is 62

aimed to ease political and military tensions through cooperation and to settle peace by developing the demilitarized zone into a venue for joint inter-Korean use. The government will work toward designating a unified special economic zone for the development of the inter-Korean border region, and ensure joint economic growth of the two Koreas by establishing a joint management committee for the border area through talks with the North and creating a special peace and cooperation zone in the West Sea. - The single market cooperation, which aims to unify the two Koreas into one market, is designed to create one physical and institutional space for inter-Korean economic cooperation. Formulating a single market will facilitate exchanges of goods, production factors and technologies, which will in turn pave the way for building the foundation of the three major economic belts and realizing a shared community. - Inter-Korean economic cooperation initiatives are mutually beneficial activities that help improve inter-Korean relations, which in turn, can contribute to the settlement of peace and denuclearization of the Korean Peninsula. When conditions are right, the government will work to normalize the Gaeseong Industrial Complex, resume Mount Geumgang tours, connect railways and roads, and cooperate to make joint use of common resources with the North.

To sign an inter-Korean basic agreement and redefine inter-Korean relations Ministry of Unification

▪ Will the government conclude an Inter-Korean Basic Agreement for the settlement of peace on the Korean Peninsula? “ Create conditions for dialogue and hold inter-Korean talks including those of highlevel officials to conclude an inter-Korean basic agreement” - The government strives to resolve issues with North Korea through dialogue and to devise a system to settle peace on the Korean Peninsula by adopting an inter-Korean basic agreement. South and North Korea will be able to achieve joint growth once a system is in place for inter-Korean agreements to be implemented. - To improve relations with North Korea, the Joint Liaison Office was established in Gaeseong in September 2018 as a direct communication channel operating round the clock. The government will pursue inter-Korean dialogue in various sectors including sports, military and economic talks. Through these talks, the government will work toward regular and systemized inter-Korean dialogue, hold high-level talks, and adopt a South-North basic agreement. 63


National Policy Tasks What effort is the government making to achieve this? ▪ To realize peace economy by promoting the “New Economic Initiative on the Korean Peninsula” -Ministry of Unification

▪ To sign an inter-Korean basic agreement and redefine inter-Korean relations -Ministry of Unification ▪ To resolve humanitarian issues including North Korean human rights and separated families -Ministry of Unification

▪ To improve inter-Korean relations through reinvigorated exchanges -Ministry of Unification ▪ To create a public consensus on unification and conclude the signing of the National Unification

Contract -Ministry of Unification ▪ Peaceful resolution of the North Korean nuclear issue and establishment of a peace regime on the Korean Peninsula -Ministry of Foreign Affairs

To realize peace economy by promoting the “New Economic Initiative on the Korean Peninsula” Ministry of Unification ▪ Can South and North Korea create a unified market? “ Realize a peace economy through the New Economic Initiative for the Korean Peninsula” - Increased economic cooperation between the two Koreas will establish the foundation for economic reunification, creating new jobs and raising the economic growth rate. The realization of a peace economy based on the New Economic Initiative will lay the basis for the Korean Peninsula to rise as a hub for economic cooperation in Northeast Asia. - The concept of the New Economic Initiative for the Korean Peninsula is to secure new growth engine through three major economic belts and to lay the foundation for economic unification through reciprocal cooperation between South and North Korea. The Pan East Sea Energy and Natural Resources Belt is designed to expand the range of cooperation on the east coast and develop a constructive axis of cooperation connecting South Korea, North Korea, China, and Russia. The belt will be developed based on energy cooperation with Russia (gas, etc.) and joint development of mineral resources (zinc, magnesite, etc.) in the Dancheon Special Economic Zone. The Pan Yellow Sea Manufacturing and Logistics Belt is designed to leverage already existing infrastructure between the South and the North including the large population and industrial facilities; the geographical proximity of Seoul and Pyeongyang in the western axis; the trade volume among the two Koreas and China, and its complementary nature; and the innovation in combined logistics resulting from advances in China’s Belt and Road Initiative. The DMZ Peace Belt in the border area is 62

aimed to ease political and military tensions through cooperation and to settle peace by developing the demilitarized zone into a venue for joint inter-Korean use. The government will work toward designating a unified special economic zone for the development of the inter-Korean border region, and ensure joint economic growth of the two Koreas by establishing a joint management committee for the border area through talks with the North and creating a special peace and cooperation zone in the West Sea. - The single market cooperation, which aims to unify the two Koreas into one market, is designed to create one physical and institutional space for inter-Korean economic cooperation. Formulating a single market will facilitate exchanges of goods, production factors and technologies, which will in turn pave the way for building the foundation of the three major economic belts and realizing a shared community. - Inter-Korean economic cooperation initiatives are mutually beneficial activities that help improve inter-Korean relations, which in turn, can contribute to the settlement of peace and denuclearization of the Korean Peninsula. When conditions are right, the government will work to normalize the Gaeseong Industrial Complex, resume Mount Geumgang tours, connect railways and roads, and cooperate to make joint use of common resources with the North.

To sign an inter-Korean basic agreement and redefine inter-Korean relations Ministry of Unification

▪ Will the government conclude an Inter-Korean Basic Agreement for the settlement of peace on the Korean Peninsula? “ Create conditions for dialogue and hold inter-Korean talks including those of highlevel officials to conclude an inter-Korean basic agreement” - The government strives to resolve issues with North Korea through dialogue and to devise a system to settle peace on the Korean Peninsula by adopting an inter-Korean basic agreement. South and North Korea will be able to achieve joint growth once a system is in place for inter-Korean agreements to be implemented. - To improve relations with North Korea, the Joint Liaison Office was established in Gaeseong in September 2018 as a direct communication channel operating round the clock. The government will pursue inter-Korean dialogue in various sectors including sports, military and economic talks. Through these talks, the government will work toward regular and systemized inter-Korean dialogue, hold high-level talks, and adopt a South-North basic agreement. 63


- The signing of a basic agreement is being pursued to reflect changes in inter-Korean relations, while respecting existing agreements. The public engagement process to build public consensus is considerably important when holding talks with the North. It is also necessary to hold consultative meetings between the government and the ruling party, and promote bipartisan cooperation with the National Assembly. Once conditions are set, the government will hold high-level talks with the North to conclude an inter-Korean basic agreement and secure support both at home and abroad.

public awareness toward North Korean defectors and promote communication between defectors and local residents.

To improve inter-Korean relations through reinvigorated exchanges Ministry of Unification

▪ What strategies are being devised to support inter-Korean exchanges in various areas?

To resolve humanitarian issues including North Korean human rights and separated families Ministry of Unification ▪ What efforts are made to effectively resolve humanitarian issues with North Korea? “ Confirm life or death of separated families, arrange family reunions on a regular basis, prepare for institutionalizing exchange, and strengthen humanitarian assistance and cooperation” - The process of resolving humanitarian issues with the North entails easing the pain of national division, improving the quality of life of North Korean people, and restoring a sense of unity between South and North Korea. The government remains dedicated to this effort, adhering to the position that humanitarian issues must be prioritized over any political considerations. - To solve the separated families issue, the government is working to confirm the life or death of applicants for reunions of separated families, arrange family reunion on a regular basis, and prepare for institutionalizing exchange. The government is devising various solutions for issues regarding prisoners of war and abductees, while listening to and respecting the opinions of those directly concerned. - The government has strengthened humanitarian assistance and cooperation to improve the humanitarian situations of the North Korean people and improve their quality of life. It decided to provide funds for international organization projects for the North, and supported civic organization activities. Any government-level support will be pursued based on public consensus. - The government is working to improve human rights situations of the North Korean people and will enhance cooperation with the international community. - To assist North Korean defectors settle in the South, the government will develop more life-friendly support programs for defectors by increasing the efficiency of the support system and providing customized assistance. It will also strive to improve 64

“ Actively support exchanges and cooperation of the private sector and local governments, and work to restore a sense of unity between South and North Korea through the joint compilation of the Grand Dictionary of the Korean Language (Gyeoremal-Keunsajeon)” - The government resumed exchanges and cooperation with North Korea on the occasion of the 2018 Olympic and Paralympic Winter Games in Pyeongchang. It seeks to promote reconciliation and restore a sense of unity between the two Koreas by facilitating exchanges and cooperation in a variety of areas including culture, sports, and arts. These efforts are expected to contribute to the improvement of interKorean relations and ultimately lead to lasting peace and co-prosperity on the Korean Peninsula. - The government also encourages the expansion of autonomy of the private sector and local governments, promoting a decentralized system for exchanges and cooperation that encompasses the central government, local governments, and private sector. It encourages exchanges and cooperation at the private and local government level through a system of governance for consultation, which takes the form of forums and discussions organized by private organizations, discussions between the Ministry of Unification and local governments, and formal discussions organized by local governments. - In view of restoring a sense of unity between the South and the North, the government will compile the Grand Dictionary of the Korean Language(Gyeoremal-Keunsajeon) and conduct archaeological excavations at Manwoldae Palace in Gaeseong jointly with the North. The government strives to promote inter-Korean sports exchange events, and is making efforts to form a South-North joint team for the 2020 Tokyo Summer Olympics and to jointly host the 2032 Olympics in Seoul and Pyeongyang. It is also supporting various cooperation initiatives in academics, history, linguistics, education, and other social and cultural areas. - Institutional improvements are made in the Inter-Korean Exchange and Cooperation Act and the Inter-Korean Exchange and Cooperation System(website) to enhance 65


- The signing of a basic agreement is being pursued to reflect changes in inter-Korean relations, while respecting existing agreements. The public engagement process to build public consensus is considerably important when holding talks with the North. It is also necessary to hold consultative meetings between the government and the ruling party, and promote bipartisan cooperation with the National Assembly. Once conditions are set, the government will hold high-level talks with the North to conclude an inter-Korean basic agreement and secure support both at home and abroad.

public awareness toward North Korean defectors and promote communication between defectors and local residents.

To improve inter-Korean relations through reinvigorated exchanges Ministry of Unification

▪ What strategies are being devised to support inter-Korean exchanges in various areas?

To resolve humanitarian issues including North Korean human rights and separated families Ministry of Unification ▪ What efforts are made to effectively resolve humanitarian issues with North Korea? “ Confirm life or death of separated families, arrange family reunions on a regular basis, prepare for institutionalizing exchange, and strengthen humanitarian assistance and cooperation” - The process of resolving humanitarian issues with the North entails easing the pain of national division, improving the quality of life of North Korean people, and restoring a sense of unity between South and North Korea. The government remains dedicated to this effort, adhering to the position that humanitarian issues must be prioritized over any political considerations. - To solve the separated families issue, the government is working to confirm the life or death of applicants for reunions of separated families, arrange family reunion on a regular basis, and prepare for institutionalizing exchange. The government is devising various solutions for issues regarding prisoners of war and abductees, while listening to and respecting the opinions of those directly concerned. - The government has strengthened humanitarian assistance and cooperation to improve the humanitarian situations of the North Korean people and improve their quality of life. It decided to provide funds for international organization projects for the North, and supported civic organization activities. Any government-level support will be pursued based on public consensus. - The government is working to improve human rights situations of the North Korean people and will enhance cooperation with the international community. - To assist North Korean defectors settle in the South, the government will develop more life-friendly support programs for defectors by increasing the efficiency of the support system and providing customized assistance. It will also strive to improve 64

“ Actively support exchanges and cooperation of the private sector and local governments, and work to restore a sense of unity between South and North Korea through the joint compilation of the Grand Dictionary of the Korean Language (Gyeoremal-Keunsajeon)” - The government resumed exchanges and cooperation with North Korea on the occasion of the 2018 Olympic and Paralympic Winter Games in Pyeongchang. It seeks to promote reconciliation and restore a sense of unity between the two Koreas by facilitating exchanges and cooperation in a variety of areas including culture, sports, and arts. These efforts are expected to contribute to the improvement of interKorean relations and ultimately lead to lasting peace and co-prosperity on the Korean Peninsula. - The government also encourages the expansion of autonomy of the private sector and local governments, promoting a decentralized system for exchanges and cooperation that encompasses the central government, local governments, and private sector. It encourages exchanges and cooperation at the private and local government level through a system of governance for consultation, which takes the form of forums and discussions organized by private organizations, discussions between the Ministry of Unification and local governments, and formal discussions organized by local governments. - In view of restoring a sense of unity between the South and the North, the government will compile the Grand Dictionary of the Korean Language(Gyeoremal-Keunsajeon) and conduct archaeological excavations at Manwoldae Palace in Gaeseong jointly with the North. The government strives to promote inter-Korean sports exchange events, and is making efforts to form a South-North joint team for the 2020 Tokyo Summer Olympics and to jointly host the 2032 Olympics in Seoul and Pyeongyang. It is also supporting various cooperation initiatives in academics, history, linguistics, education, and other social and cultural areas. - Institutional improvements are made in the Inter-Korean Exchange and Cooperation Act and the Inter-Korean Exchange and Cooperation System(website) to enhance 65


stability and predictability in pursuing exchange and cooperation. This is part of the government’s efforts to increase public convenience and accessibility, and lay a stable foundation for inter-Korean exchanges and cooperation.

Peaceful resolution of the North Korean nuclear issue and establishment of a peace regime on the Korean Peninsula Ministry of Foreign Affairs ▪ Can the society be made safer by establishing gender equality?

To create a public consensus on unification and conclude the signing of the National Unification Contract Ministry of Unification ▪ Will the National Unification Contract bring us closer to unification? “ Carry on and develop the Korean National Community Unification Formula by signing a National Unification Contract among the public, National Assembly, and the government by 2022.”

“ Pursuing comprehensive negotiations on denuclearization with North Korea to reach an agreement for complete denuclearization” - With the aim of complete denuclearization on the Korean Peninsula, the government is making multifaceted efforts to bring North Korea on the path of denuclearization. The realization of peace on the Korean Peninsula through denuclearization of North Korea and establishment of a peace regime is an objective shared by all.

- The objective is to pave the way for sustainable implementation of unification and North Korea policies, and to build public consensus through communication, engagement, and education to strengthen the competence for unification in the future. The government is seeking bipartisan cooperation and public support on matters related to unification and North Korea policies to raise positive awareness on the need for unification among future generations.

- I n order to reach an agreement on complete denuclearization of North Korea, the government is preparing comprehensive negotiations plans, and is also pursuing early denuclearization actions and resumption of comprehensive denuclearization talks. Deterring further provocations by North Korea based on a robust ROK-US alliance and cooperation with the international community is the issue of great importance as achieving substantial progress by resuming meaningful denuclearization talks such as the six party talks. The government will work towards achieving denuclearization of North Korea by using all available diplomatic means.

- The government will seek the signing of a national agreement on unification based on the participation of and communication with the public and the National Assembly in the form of a National Unification Contract. It will conclude the contract and establish the necessary implementation plan and communication system by 2022. The National Unification Contract will succeed and further develop the Korean National Community Unification Formula.

- The government will foster favorable conditions for North Korea’s denuclearization and facilitate its denuclearization process through inter-Korean dialogue, exchanges and cooperation within the framework of the sanctions against North Korea. Also, to build political and military confidence with the North, the government will start with initial confidence-building efforts and step up its efforts towards improving relations through inter-Korean dialogue, along with denuclearization efforts.

- Unification centers will be established in metropolitan cities in a phased manner. The centers will provide unification education for local residents, function as a unification exhibition hall, and render settlement support for North Korean defectors.

- In order to establish a peace regime on the Korean Peninsula, the government will pursue talks along the denuclearization process, and, as the North Korean nuclear issue is nearing complete resolution, it will focus on conclusion of an agreement and stable management of the peace regime. This requires the support of the international community, including that of key neighboring countries.

- The government will nurture future experts on unification. It will research and develop programs to train experts, and will make efforts to foster human resources and strengthen their capabilities in preparation for unification. - The government will build public consensus on major principles of unification education by establishing a foundation, and raise the future generations’ awareness toward unification.

66

67


stability and predictability in pursuing exchange and cooperation. This is part of the government’s efforts to increase public convenience and accessibility, and lay a stable foundation for inter-Korean exchanges and cooperation.

Peaceful resolution of the North Korean nuclear issue and establishment of a peace regime on the Korean Peninsula Ministry of Foreign Affairs ▪ Can the society be made safer by establishing gender equality?

To create a public consensus on unification and conclude the signing of the National Unification Contract Ministry of Unification ▪ Will the National Unification Contract bring us closer to unification? “ Carry on and develop the Korean National Community Unification Formula by signing a National Unification Contract among the public, National Assembly, and the government by 2022.”

“ Pursuing comprehensive negotiations on denuclearization with North Korea to reach an agreement for complete denuclearization” - With the aim of complete denuclearization on the Korean Peninsula, the government is making multifaceted efforts to bring North Korea on the path of denuclearization. The realization of peace on the Korean Peninsula through denuclearization of North Korea and establishment of a peace regime is an objective shared by all.

- The objective is to pave the way for sustainable implementation of unification and North Korea policies, and to build public consensus through communication, engagement, and education to strengthen the competence for unification in the future. The government is seeking bipartisan cooperation and public support on matters related to unification and North Korea policies to raise positive awareness on the need for unification among future generations.

- I n order to reach an agreement on complete denuclearization of North Korea, the government is preparing comprehensive negotiations plans, and is also pursuing early denuclearization actions and resumption of comprehensive denuclearization talks. Deterring further provocations by North Korea based on a robust ROK-US alliance and cooperation with the international community is the issue of great importance as achieving substantial progress by resuming meaningful denuclearization talks such as the six party talks. The government will work towards achieving denuclearization of North Korea by using all available diplomatic means.

- The government will seek the signing of a national agreement on unification based on the participation of and communication with the public and the National Assembly in the form of a National Unification Contract. It will conclude the contract and establish the necessary implementation plan and communication system by 2022. The National Unification Contract will succeed and further develop the Korean National Community Unification Formula.

- The government will foster favorable conditions for North Korea’s denuclearization and facilitate its denuclearization process through inter-Korean dialogue, exchanges and cooperation within the framework of the sanctions against North Korea. Also, to build political and military confidence with the North, the government will start with initial confidence-building efforts and step up its efforts towards improving relations through inter-Korean dialogue, along with denuclearization efforts.

- Unification centers will be established in metropolitan cities in a phased manner. The centers will provide unification education for local residents, function as a unification exhibition hall, and render settlement support for North Korean defectors.

- In order to establish a peace regime on the Korean Peninsula, the government will pursue talks along the denuclearization process, and, as the North Korean nuclear issue is nearing complete resolution, it will focus on conclusion of an agreement and stable management of the peace regime. This requires the support of the international community, including that of key neighboring countries.

- The government will nurture future experts on unification. It will research and develop programs to train experts, and will make efforts to foster human resources and strengthen their capabilities in preparation for unification. - The government will build public consensus on major principles of unification education by establishing a foundation, and raise the future generations’ awareness toward unification.

66

67


Strategy

Reinforcing International Cooperation through Diplomacy

National Policy Tasks What is the government doing to achieve this? ▪ To promote the national interest by reflecting public opinion in diplomacy and by supporting

public diplomacy -Ministry of Foreign Affairs

▪ To cooperate diplomatically with the four countries whose interests converge on the Korean

Peninsula -Ministry of Foreign Affairs

▪ To create a “Northeast Asia + Community of Responsibility” -Ministry of Foreign Affairs ▪ To strengthen economic diplomacy and development cooperation to advance national interests Question

What is cooperation diplomacy? “ Address the urgent need to have people for diplomacy, rather than

-Ministry of Foreign Affairs

▪ To respond to trade protectionism and enhance strategic economic cooperation -Ministry of Trade, Industry and Energy

diplomats for diplomacy, amidst growing globalization”

• As a deeply involved member of the international community, Korea must carry out more in-depth cooperation diplomacy to ensure its survival and development. Particularly, the peace and stability of Northeast Asia depends heavily on active peace and cooperation diplomacy that goes beyond the region. Therefore, strengthening cooperation diplomacy and creating a “Northeast Asia + Community of Responsibility” is one of the key policy strategies of the Moon administration. • As globalization continues and given the urgent need to have people for diplomacy, rather than diplomats for diplomacy, a system of people diplomacy is required to facilitate increased public engagement and communication in foreign policy-making. This will help create an open, outward-looking economic environment and expand the horizons of cooperation with newly emerging economies. It will also serve national interests through win-win development cooperation that will bring more jobs for young adults. • As diplomacy with countries in Northeast Asia is a matter of survival, Korea must actively pursue cooperation diplomacy with the United States, China, Japan, and Russia, and develop future-oriented relations that best serve its national interests. To ease the geopolitical tension and competitive structure of Northeast Asia, an environment for long-lasting peace and cooperation must be created in the region through a peace and cooperation platform, the New Northern Policy, and the New Southern Policy.

To promote the national interest through Public Diplomacy and Participatory Diplomacy Ministry of Foreign Affairs ▪ Can a public diplomacy system where the people participate be established? “ To strengthen public engagement and communication in foreign policy, a system of open contests for policy recommendation and other means have been established” - Having established the concept and directions for participatory diplomacy, and by opening the Center for Participatory Diplomacy and other infrastructure, the Ministry of Foreign Affairs established a system for participatory diplomacy to strengthen public engagement and communication in foreign policy through policy recommendation contests, public lectures, and public participatory programs. Through these efforts, the government hopes to increase public understanding and support for foreign policy, and actively pursue diplomacy that is centered on the people and national interests. - The ministry is working to promote an organizational culture that enables free-flow of communication, build trust in personnel management through more intensive verification of diplomatic competence, strengthen diplomatic capacity by personnel increase and greater professionalism, contribute to global issues such as democracy, human rights, and anti-terrorism, expand the number of Koreans working in international organizations and enhance governmental support. - As the primary coordinating body for public diplomacy, the Public Diplomacy Committee established the 1st Five-year Basic Plan for Public Diplomacy, and implements Public Diplomacy in a consistent, systematic, and synchronized manner at the inter-governmental level. -T he goal is to expand social consensus on participatory public diplomacy.

68

69


Strategy

Reinforcing International Cooperation through Diplomacy

National Policy Tasks What is the government doing to achieve this? ▪ To promote the national interest by reflecting public opinion in diplomacy and by supporting

public diplomacy -Ministry of Foreign Affairs

▪ To cooperate diplomatically with the four countries whose interests converge on the Korean

Peninsula -Ministry of Foreign Affairs

▪ To create a “Northeast Asia + Community of Responsibility” -Ministry of Foreign Affairs ▪ To strengthen economic diplomacy and development cooperation to advance national interests Question

What is cooperation diplomacy? “ Address the urgent need to have people for diplomacy, rather than

-Ministry of Foreign Affairs

▪ To respond to trade protectionism and enhance strategic economic cooperation -Ministry of Trade, Industry and Energy

diplomats for diplomacy, amidst growing globalization”

• As a deeply involved member of the international community, Korea must carry out more in-depth cooperation diplomacy to ensure its survival and development. Particularly, the peace and stability of Northeast Asia depends heavily on active peace and cooperation diplomacy that goes beyond the region. Therefore, strengthening cooperation diplomacy and creating a “Northeast Asia + Community of Responsibility” is one of the key policy strategies of the Moon administration. • As globalization continues and given the urgent need to have people for diplomacy, rather than diplomats for diplomacy, a system of people diplomacy is required to facilitate increased public engagement and communication in foreign policy-making. This will help create an open, outward-looking economic environment and expand the horizons of cooperation with newly emerging economies. It will also serve national interests through win-win development cooperation that will bring more jobs for young adults. • As diplomacy with countries in Northeast Asia is a matter of survival, Korea must actively pursue cooperation diplomacy with the United States, China, Japan, and Russia, and develop future-oriented relations that best serve its national interests. To ease the geopolitical tension and competitive structure of Northeast Asia, an environment for long-lasting peace and cooperation must be created in the region through a peace and cooperation platform, the New Northern Policy, and the New Southern Policy.

To promote the national interest through Public Diplomacy and Participatory Diplomacy Ministry of Foreign Affairs ▪ Can a public diplomacy system where the people participate be established? “ To strengthen public engagement and communication in foreign policy, a system of open contests for policy recommendation and other means have been established” - Having established the concept and directions for participatory diplomacy, and by opening the Center for Participatory Diplomacy and other infrastructure, the Ministry of Foreign Affairs established a system for participatory diplomacy to strengthen public engagement and communication in foreign policy through policy recommendation contests, public lectures, and public participatory programs. Through these efforts, the government hopes to increase public understanding and support for foreign policy, and actively pursue diplomacy that is centered on the people and national interests. - The ministry is working to promote an organizational culture that enables free-flow of communication, build trust in personnel management through more intensive verification of diplomatic competence, strengthen diplomatic capacity by personnel increase and greater professionalism, contribute to global issues such as democracy, human rights, and anti-terrorism, expand the number of Koreans working in international organizations and enhance governmental support. - As the primary coordinating body for public diplomacy, the Public Diplomacy Committee established the 1st Five-year Basic Plan for Public Diplomacy, and implements Public Diplomacy in a consistent, systematic, and synchronized manner at the inter-governmental level. -T he goal is to expand social consensus on participatory public diplomacy.

68

69


To cooperate diplomatically with the four countries whose interests converge

To create a “Northeast Asia + Community of Responsibility”

on the Korean Peninsula Ministry of Foreign Affairs

Ministry of Foreign Affairs

▪ What are the principles that drive cooperation diplomacy with the four surrounding countries? “ Establish peace on the Korean Peninsula and contribute to joint prosperity of Eurasia based on trust and cooperation” - The ROK’s close and cooperative ties with the United States deepen and advance the ROK-U.S. alliance. Two countries have been actively pursuing public diplomacy and high-level exchanges including mutual visits by president Moon and president Trump. Based on such diplomatic efforts, the ROK government will further strengthen the ROK-U.S. combined defense posture, ensure a stable stationing of U.S. Forces in Korea, and resolve bilateral issues in a reasonable and mutually beneficial way. - Regarding relations with China, the government will deepen its strategic and cooperative partnership with China through summit meetings and other high-level dialogues, and restore trust with close communication. The bilateral cooperation will be further strengthened in the areas of North Korea nuclear issue, Korea-China FTA and follow-up negotiations, and issues closely related to the public such as fine dust. - As to relations with Japan, the government is making efforts to wisely manage and develop bilateral relations. It is working to resolve issues arising from the past, while continuing to cooperate where necessary. It wants to increase cooperation with Japan in a way that the two countries can contribute to promoting peace and prosperity in the Northeast Asian region. - With regards to relations with Russia, the government will hold regular highlevel exchanges to develop relations with the country and strengthen strategic communication for resolving the North Korean nuclear issue. It will increase cooperation, including implementation of the Nine-Bridge Cooperation Strategy and conclusion of a free trade agreement in the service and investment sectors, to serve as drivers for future growth. By 2020, the government aims to achieve 30 billion dollars in trade and 1 million people–to-people exchanges. - Based on mutual trust and close cooperation with the four surrounding countries, the government hopes to contribute to the lasting peace and prosperity on the Korean Peninsula and the co-prosperity of Eurasia.

70

▪ What are the strategies for joint prosperity with countries in Northeast Asia? “Increase trilateral cooperation with China and Japan and other mini-multilateral cooperation, and execute New Northern Policy as a strategy towards the Continent” - The goal is to shape favorable conditions for peace and cooperation in the region which are conducive to survival and prosperity of the Republic of Korea amidst geopolitical tensions and competition in Northeast Asia. To this end, the government is building the Northeast Asia Peace and Cooperation (NAPC) Platform as a pillar of Peace. It is also pursuing the New Northern Policy and the New Southern Policy to develop the Southern and Northern regions beyond Northeast Asia as a pillar of Prosperity. - Dialogues and communications through peace and cooperation in the region will serve as the basis for further cooperation in the region. It seeks to institutionalize multilateral cooperation among major countries and help regularize and institute intergovernmental consultations to push multilateral security cooperation forward. The government is working on increased Korea-China-Japan cooperation and minilateral cooperation, while maintaining cooperative ties with MIKTA (partnership between Mexico, Indonesia, Korea, Turkey, and Australia) with an aim to increase cooperation among various middle powers in East Asia. - The government is pursuing the New Southern Policy to bolster relations with ASEAN Member States and India. It is increasing effective, demand-based cooperation with ASEAN Member States, and strengthening the special strategic partnership with India. - The government’s New Northern Policy is designed to increase cooperation with countries in Eurasia. By strengthening transport, logistics and energy connectivity with Eurasian countries including Russia and Central Asia, the government seeks to create new drivers of growth for the Korean economy while promoting peace, security, and joint prosperity of the Eurasian Continent that includes the Korean Peninsula. - The Northeast Asia + Community of Responsibility is a mid- to long-term vision for creating a favorable environment for peace and prosperity beyond the Korean Peninsula and Northeast Asia. It will promote peace and co-prosperity in the region by institutionalizing multilateral cooperation among key countries, expanding the reach of peace and prosperity by strengthening relations with ASEAN and India, and boosting the connectivity between the Korean Peninsula and Eurasia.

71


To cooperate diplomatically with the four countries whose interests converge

To create a “Northeast Asia + Community of Responsibility”

on the Korean Peninsula Ministry of Foreign Affairs

Ministry of Foreign Affairs

▪ What are the principles that drive cooperation diplomacy with the four surrounding countries? “ Establish peace on the Korean Peninsula and contribute to joint prosperity of Eurasia based on trust and cooperation” - The ROK’s close and cooperative ties with the United States deepen and advance the ROK-U.S. alliance. Two countries have been actively pursuing public diplomacy and high-level exchanges including mutual visits by president Moon and president Trump. Based on such diplomatic efforts, the ROK government will further strengthen the ROK-U.S. combined defense posture, ensure a stable stationing of U.S. Forces in Korea, and resolve bilateral issues in a reasonable and mutually beneficial way. - Regarding relations with China, the government will deepen its strategic and cooperative partnership with China through summit meetings and other high-level dialogues, and restore trust with close communication. The bilateral cooperation will be further strengthened in the areas of North Korea nuclear issue, Korea-China FTA and follow-up negotiations, and issues closely related to the public such as fine dust. - As to relations with Japan, the government is making efforts to wisely manage and develop bilateral relations. It is working to resolve issues arising from the past, while continuing to cooperate where necessary. It wants to increase cooperation with Japan in a way that the two countries can contribute to promoting peace and prosperity in the Northeast Asian region. - With regards to relations with Russia, the government will hold regular highlevel exchanges to develop relations with the country and strengthen strategic communication for resolving the North Korean nuclear issue. It will increase cooperation, including implementation of the Nine-Bridge Cooperation Strategy and conclusion of a free trade agreement in the service and investment sectors, to serve as drivers for future growth. By 2020, the government aims to achieve 30 billion dollars in trade and 1 million people–to-people exchanges. - Based on mutual trust and close cooperation with the four surrounding countries, the government hopes to contribute to the lasting peace and prosperity on the Korean Peninsula and the co-prosperity of Eurasia.

70

▪ What are the strategies for joint prosperity with countries in Northeast Asia? “Increase trilateral cooperation with China and Japan and other mini-multilateral cooperation, and execute New Northern Policy as a strategy towards the Continent” - The goal is to shape favorable conditions for peace and cooperation in the region which are conducive to survival and prosperity of the Republic of Korea amidst geopolitical tensions and competition in Northeast Asia. To this end, the government is building the Northeast Asia Peace and Cooperation (NAPC) Platform as a pillar of Peace. It is also pursuing the New Northern Policy and the New Southern Policy to develop the Southern and Northern regions beyond Northeast Asia as a pillar of Prosperity. - Dialogues and communications through peace and cooperation in the region will serve as the basis for further cooperation in the region. It seeks to institutionalize multilateral cooperation among major countries and help regularize and institute intergovernmental consultations to push multilateral security cooperation forward. The government is working on increased Korea-China-Japan cooperation and minilateral cooperation, while maintaining cooperative ties with MIKTA (partnership between Mexico, Indonesia, Korea, Turkey, and Australia) with an aim to increase cooperation among various middle powers in East Asia. - The government is pursuing the New Southern Policy to bolster relations with ASEAN Member States and India. It is increasing effective, demand-based cooperation with ASEAN Member States, and strengthening the special strategic partnership with India. - The government’s New Northern Policy is designed to increase cooperation with countries in Eurasia. By strengthening transport, logistics and energy connectivity with Eurasian countries including Russia and Central Asia, the government seeks to create new drivers of growth for the Korean economy while promoting peace, security, and joint prosperity of the Eurasian Continent that includes the Korean Peninsula. - The Northeast Asia + Community of Responsibility is a mid- to long-term vision for creating a favorable environment for peace and prosperity beyond the Korean Peninsula and Northeast Asia. It will promote peace and co-prosperity in the region by institutionalizing multilateral cooperation among key countries, expanding the reach of peace and prosperity by strengthening relations with ASEAN and India, and boosting the connectivity between the Korean Peninsula and Eurasia.

71


To strengthen economic diplomacy and development cooperation to advance

To respond to trade protectionism and enhance strategic economic

national interests Ministry of Foreign Affairs

cooperation Ministry of Trade, Industry and Energy

▪ What diplomatic strategy does the government have to further national interests and contribute to the international community?

▪ What is the government’s plan to respond to trade protectionism while strengthening strategic economic cooperation?

“ Create favorable conditions for Korean people and businesses to conduct economic activities abroad, and contribute to resolving priority development tasks of the international community”

“ Jointly respond to trade protectionism on the occasion of key international conferences and coordinate more customized economic cooperation with major countries”

-T he government is working to shape a favorable environment for economic exchanges and cooperation with emerging economies. Another objective is to actively address climate change through diplomacy with surrounding countries. The government is aligning development cooperation policies with national policies, so that cooperation initiatives can contribute to creating jobs for the young. It is also establishing more systematic, synchronized and efficient systems for development cooperation. - The government is preemptively responding to changes in the external economic environment. It is making active use of joint economic committees and other intergovernmental consultation channels to tap into India and other emerging markets. The conclusion of economic agreements (investment guarantee agreements, social guarantee agreements, etc.) and their timely revision help shape favorable conditions for overseas activities by Korean nationals and businesses, and pave the way for businesses to steadily manage their business overseas. - Commensurate with Korea’s global standing and as a responsible member of the international community, the Korean Government is actively participating in climate change negotiations and preparing for the submission of its commitment to voluntarily reduce greenhouse gases to address the challenges of the global climate change. - The government is contributing to creating private sector jobs by implementing ODA programs and projects through cooperation with the private sector and giving individuals more opportunities to participate in the programs and projects. It is also promoting national interests through creating public sector jobs in the ODA sector; developing inroads into overseas markets for the infrastructure sector, etc.

-T he objective is to steadily manage trade issues with the United States and China, to further strengthen economic cooperative ties with emerging markets in ASEAN, Eurasia, and Central and South America, and to respond effectively to the spread of trade protectionism. - In 2018, the Government concluded the revised Korea-United States Free Trade Agreement, providing for increased reciprocity. It is using industrial cooperation dialogues and various other channels for cooperation to resolve trade issues and coordinate economic cooperation with the United States. - The Government is stepping up cooperation with China and expanding the use of the Korea-China FTA by facilitating cooperation in the areas of trade and industries, and organizing FTA implementation committees. - The Government is promoting further economic cooperation with ASEAN countries and India, while actively negotiating new FTAs with the Southern Common Market (MERCOSUR), Russia, the Pacific Alliance, and other newly emerging big markets. -O n the occasion of key international conferences such as the WTO ministerial conferences, APEC, and the G20 trade ministers’ meeting, the Government is increasing collaboration with other countries to jointly respond to trade protectionism and restore the multilateral trade system. It is also actively engaged in discussions related to digitalization and other issues in order to strategically respond to changes in the trade environment. - The Government will play a more important role in overseeing and coordinating trade policies. It will also build trade competence through increased expertise and public-private networks in response to import regulations.

- The government is implementing international development cooperation strategically so as to further national interests and contribute to implementing the Sustainable Development Goals(SDGs) and other priority development tasks of the international community. To this end, it is strategically linking concessional loans and grants, and managing grants holistically for increased efficiency. 72

73


To strengthen economic diplomacy and development cooperation to advance

To respond to trade protectionism and enhance strategic economic

national interests Ministry of Foreign Affairs

cooperation Ministry of Trade, Industry and Energy

▪ What diplomatic strategy does the government have to further national interests and contribute to the international community?

▪ What is the government’s plan to respond to trade protectionism while strengthening strategic economic cooperation?

“ Create favorable conditions for Korean people and businesses to conduct economic activities abroad, and contribute to resolving priority development tasks of the international community”

“ Jointly respond to trade protectionism on the occasion of key international conferences and coordinate more customized economic cooperation with major countries”

-T he government is working to shape a favorable environment for economic exchanges and cooperation with emerging economies. Another objective is to actively address climate change through diplomacy with surrounding countries. The government is aligning development cooperation policies with national policies, so that cooperation initiatives can contribute to creating jobs for the young. It is also establishing more systematic, synchronized and efficient systems for development cooperation. - The government is preemptively responding to changes in the external economic environment. It is making active use of joint economic committees and other intergovernmental consultation channels to tap into India and other emerging markets. The conclusion of economic agreements (investment guarantee agreements, social guarantee agreements, etc.) and their timely revision help shape favorable conditions for overseas activities by Korean nationals and businesses, and pave the way for businesses to steadily manage their business overseas. - Commensurate with Korea’s global standing and as a responsible member of the international community, the Korean Government is actively participating in climate change negotiations and preparing for the submission of its commitment to voluntarily reduce greenhouse gases to address the challenges of the global climate change. - The government is contributing to creating private sector jobs by implementing ODA programs and projects through cooperation with the private sector and giving individuals more opportunities to participate in the programs and projects. It is also promoting national interests through creating public sector jobs in the ODA sector; developing inroads into overseas markets for the infrastructure sector, etc.

-T he objective is to steadily manage trade issues with the United States and China, to further strengthen economic cooperative ties with emerging markets in ASEAN, Eurasia, and Central and South America, and to respond effectively to the spread of trade protectionism. - In 2018, the Government concluded the revised Korea-United States Free Trade Agreement, providing for increased reciprocity. It is using industrial cooperation dialogues and various other channels for cooperation to resolve trade issues and coordinate economic cooperation with the United States. - The Government is stepping up cooperation with China and expanding the use of the Korea-China FTA by facilitating cooperation in the areas of trade and industries, and organizing FTA implementation committees. - The Government is promoting further economic cooperation with ASEAN countries and India, while actively negotiating new FTAs with the Southern Common Market (MERCOSUR), Russia, the Pacific Alliance, and other newly emerging big markets. -O n the occasion of key international conferences such as the WTO ministerial conferences, APEC, and the G20 trade ministers’ meeting, the Government is increasing collaboration with other countries to jointly respond to trade protectionism and restore the multilateral trade system. It is also actively engaged in discussions related to digitalization and other issues in order to strategically respond to changes in the trade environment. - The Government will play a more important role in overseeing and coordinating trade policies. It will also build trade competence through increased expertise and public-private networks in response to import regulations.

- The government is implementing international development cooperation strategically so as to further national interests and contribute to implementing the Sustainable Development Goals(SDGs) and other priority development tasks of the international community. To this end, it is strategically linking concessional loans and grants, and managing grants holistically for increased efficiency. 72

73


A Nation of the People, A Just Republic of Korea

Publication Date: December 2019


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.