In recent years, the global industrial landscape has been rapidly transforming at an unprecedented pace and scope as characterized by low growth, spread of protectionism, and the advent of the Fourth Industrial Revolution. Advanced economies are proactively responding to intensifying global competition by reforming the relevant laws and systems and by preparing support policies.
However, Korea has been losing its competitiveness in shipbuilding, steel, automotive, and other traditional manufacturing industries due to global supply surplus and emerging rivals like China which are vigorously making investments and technological catch-up. There is also a lack of future growth engines to besides industries such as semiconductor and display.
Many countries are implementing state-level strategies based on their strengths in response to the Fourth Industrial Revolution, and Korea needs to make the most of its strong manufacturing sector as a major driving force.
In this regard, the Presidential Committee on the Fourth Industrial Revolution was established based on the Regulations on the Establishment and Operation of the Committee on the Fourth Industrial Revolution (Directive, promulgated on Aug. 22). However, given the impact of the Fourth Industrial Revolution and the recent intensification of global industrial competition on people’s lives, the current system is only based on a Presidential Decree and is not sufficient to create new growth engines based on comprehensive consideration and structural innovation of the entire industrial ecosystem.
Already, there are laws concerning the Fourth Industrial Revolution and industrial innovation such as the Industrial Development Act, Industrial Convergence Promotion Act, and Special Act on Promotion of Information and Communications Technology, Vitalization of Convergence thereof, etc. However, there is a lack of efficient implementation systems, regulatory reforms, support measures, etc. necessary for creating future growth engines and extensively innovating the industrial structure, and any such efforts have been divided among different government ministries.
Accordingly, the Act on Support for New Industry Creation and Industrial Innovation in Preparation for the Fourth Industrial Revolution aims to establish an “Industrial Innovation Committee” under the Minister of Trade, Industry and Energy, and prescribe matters concerning implementation systems, regulatory reforms, and support for the creation of future-oriented new industries and promotion of industrial innovation.

Details

A. Define “the Fourth Industrial Revolution” as a convergence of artificial intelligence, big data, biotechnology, and other innovative technologies with existing industries and the service industry, etc. that causes a fundamental change in the structure of the economy/society, and define such terms as “regulatory sandbox” in response to the intensification of global competition and spread of the Fourth Industrial Revolution (Article 2).
B. The Minister of Trade, Industry and Energy shall formulate and implement a master plan every 5 years to promote the creation of future-oriented new industries and industrial innovation in an efficient manner; and the heads of the relevant central administrative agencies shall formulate and implement action plans in accordance with the master plan (Article 5 and Article 6).
C. Establish and operate the Industrial Innovation Committee under the Minister of Trade, Industry and Energy to deliberate on and adjust major government policies and plans concerning the creation of future-oriented new industries and industrial innovation, and to examine and assess the progress thereof, etc. (Article 9 through Article 12).
D. The government shall introduce a Regulatory Sandbox to promote the creation of future-oriented new industries and industrial innovation; and set relevant procedures to ensure the efficient implementation of regulatory reforms in accordance upon request of an enterprise, etc. (Article 13 through Article 16).
E. The government shall formulate a professional training program, and seek measures to launch education and training programs, organize overseas training sessions for professionals, and attract and hire outstanding overseas talent (Article 17).
F. The government shall promote joint research and development between academic/research institutions and industries, provide support to promote the industrialization of the research and development outcomes of businesses, and seek efficient measures to introduce advanced technologies (Article 18 through Article 21).

The government shall introduce a regulatory sandbox to promote the creation of future-oriented new industries and industrial innovation; and set relevant procedures to ensure the efficient implementation of regulatory reforms in accordance with requests made by enterprises, etc. (Article 13 through Article 16).