The government will preoccupy the global green and digital market by utilizing 30 trillion won in export finance for the next five years in the green and digital new deal. By 2025, it plans to increase overseas orders for green projects to 30GW and digital exports to a scale of 250 billion dollars.
On the 13th, the Ministry of Trade, Industry and Energy and the Ministry of Science, ICT and ICT announced the’K-New Deal Globalization Strategy’ with relevant ministries at the ’26th Emergency Economy Central Countermeasure Headquarters Meeting and the 9th Korean New Deal Ministers’ Meeting’. .
Kim Yong-beom, the first vice minister of the Ministry of Strategy and Finance, said, “As the global transition to a green and digital economy accelerates, the related market is expected to grow and the demand for global cooperation is expected to expand further.” In order to leap forward, we have prepared a strategy for overseas expansion of the K-New Deal.”
The government takes into consideration the market, competitiveness, and cooperation demand for various green and digital New Deal tasks focused on job creation projects ▲Green Energy ▲Green Mobility ▲DNA (Digital, Network, AI) Convergence Industry ▲Intelligent Government ▲Smart SOC ▲ It was reclassified into 7 major industries including non-face-to-face industries.
■ Strategy for Green New Deal
The government plans to expand overseas orders from 15GW in 2019 to 30GW in 2025 by discovering promising projects for each strategic market and establishing a total support system.
First, ▲Advanced mature markets (US, EU, etc.) ▲Emerging growth markets (Southeast Asia, Latin America, etc.) ▲Promising markets for distributed power sources (Indonesia, Philippines, etc.) ▲Energy diversification market (Saudi, UAE, etc.) It plans to discover projects and intensively support exports and orders from domestic companies.
Deputy Minister of Trade Park Ki-young said, “We plan to support financial procurement and official development assistance (ODA) in packages by establishing a private joint Green New Deal TF with the Ministry of Industry and companies and related organizations.”
In addition, the Green New Deal order support center was first installed at KOTRA’s trade centers in three key countries, including the United States, Vietnam, and Chile, to provide integrated support for individual support agencies that went to the region.
Strengthen financial support for exports and orders for the Green New Deal.
Over the next five years, it will support export and order loans worth 30 trillion won, expand the loan limit by up to 10%, and provide preferential treatment such as additional interest rate benefits. Prior to receiving orders, the company plans to provide mid- to long-term financial guarantee limits to overseas clients on the premise of participation in domestic companies, and expand production facilities and expand export guarantees and insurance support for cashing working capital and export bonds.
By improving the preliminary feasibility system of public institutions, such as shortening the investigation period and increasing the proportion of public feasibility evaluation, we will support smooth project order and development, and activate the joint guarantee system for overseas projects of small and medium-sized companies.
Expanding overseas expansion of green small and medium-sized companies.
Among ODA with high participation of small and medium-sized companies, the proportion of Green New Deal ODA, which currently stands at 6.4%, has been expanded to the average level of the Organization for Economic Cooperation and Development (OECD), and the ODA provided preferential support for project feasibility studies when receiving orders for subsequent ODA projects. It is a policy to expand opportunities linked to the company’s follow-up business orders.
In addition, public institutions with excellent export support performance of SMEs are given preferential treatment when evaluating the performance of shared growth, strengthening solidarity and cooperation among the entities promoting overseas expansion to large, small and medium enterprises, and public institutions.
It plans to promote overseas expansion through strengthening intergovernmental (G2G) cooperation.
The policy is to increase the possibility of exports and orders by increasing the trust of domestic companies by expanding the G2G export contract system, which has been mainly used in the defense industry, to the green field.
In addition, bilateral and multilateral cooperation systems at the private level, such as promoting R&D cooperation and corporate investment advancement by expanding and reorganizing cooperation channels between the government and major advanced countries such as the US and EU, which actively promote carbon neutrality, and establishing a privately-led global H2 Alliance Council. Also plans to build.
■ Strategy for Digital New Deal
In the field of digital new deals, it plans to expand digital exports from 180 billion dollars in 2019 to 250 billion dollars in 2025 by strengthening support for overseas expansion tailored to major industries.
The DNA (digital, network, AI) convergence industry plans to support domestic demonstrations in major fields such as 5G and artificial intelligence (AI) and use the results as a reference for overseas expansion. It is a policy to expand the scope of activities of domestic companies on the world stage by discovering business models with global versatility such as Dr. Answers, and by launching the K-Digital Alliance to promote overseas expansion in the form of a consortium between companies.
Digital government and smart SOC support domestic companies’ overseas expansion by strengthening cooperation between governments through establishment of overseas cooperation bases.
The non-face-to-face industry, which has been growing rapidly since Corona 19, is planning to secure a new market by promoting localization from the beginning of the business, such as collaborating with local companies and capital.
In addition, it is developing a strategy to actively participate in the digital ecosystem by promoting global open innovation.
It plans to expand international joint research on digital core technologies such as 5G and security with countries such as the United States and the EU, and strengthen the activities of international standardization organizations such as the International Telecommunication Union (ITU).
The policy is to lead the global standard of new digital technology by promoting standard development and verification through open source.
It plans to expand the domestic infrastructure to support international certification of digital devices and expand the mutual recognition agreement for electromagnetic compatibility evaluation.
It also makes full use of a strategy to secure the leadership of a new digital economic order.
It is planning to promote a strategic ODA utilizing the results of the Digital New Deal in areas required by the supported countries, such as distance education and remote work. In addition, it plans to contribute to solving global challenges by strengthening global digital inclusion and expanding participation in international consultative bodies by supporting the resolution of the global digital gap and discovering solutions to infectious diseases based on private cooperation.
In addition, it plans to contribute to drawing a blueprint for the future digital world by actively participating in discussions with international organizations and global consultative bodies related to emerging global agendas such as AI and data.
Build the foundation for overseas expansion of digital innovators early.
Financial support will be expanded by establishing a fund exclusively for investment and financing to discover and nurture digital export companies, and to select and preferentially treat overseas digital New Deal companies as’national representatives of innovative companies’.
The overseas expansion platform will be digitally and advanced in accordance with the changing environment, such as the regular operation of online exhibition halls of ICT solution exporters.
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It is planned to establish an overseas expansion TF within the’Digital New Deal Public-Private Cooperation Meeting’ so that public-private partnerships can collaborate and spread the results of the Digital New Deal to the global market, and overseas missions and overseas bases can serve as a’global forward base’.
Jeong-won Kim, head of the Information and Communication Policy Division of the Ministry of Science and ICT, said, “The government will spare all-round support so that our technologies and companies can have global competitiveness in the green and digital fields that will lead a new economic order after Corona 19 through the’K-New Deal Globalization Strategy’. I will not.”