Abstract
After several decades of rapid development, South Korea has recently experienced a critical economic downturn. The paper considers the prerequisites for the current state-of-the-art, as well as the new economic policy agenda aimed at fostering innovation in various sectors, thereby suggesting improved policy directions. To implement the innovation-driven policy, the Korean government produced the framework for the Innovative Platform Programme (IPP), which covers a wide range of sectors related to Industry 4.0 like artificial intelligence and blockchain. For the IPP to be successful, the authors believe, it is vital to understand and resolve the trade-offs between contradictory policy priorities - innovation-led growth, income-led growth, and a fair economy.
Highlights
14 FORESIGHT AND STI GOVERNANCE Vol 13 No 3 2019While the trickledown effect tends to recall chaebol-friendly policies in that the growth of the rich could improve that of the poor [Aghion, Bolton, 1997], the boom of exports and big businesses has not led to an increase in middle class income
Кeywords: South Korea; Innovative Platform Programme; innovation-driven growth; income-led growth; economic regulation; fair economy; dynamic efficiency; fourth industrial revolution
This has prompted demand for new policies for the growth engines that are critical for the Korean economy at present
Summary
While the trickledown effect tends to recall chaebol-friendly policies in that the growth of the rich could improve that of the poor [Aghion, Bolton, 1997], the boom of exports and big businesses has not led to an increase in middle class income In this context, the new Moon government adopted new economic policies that mainly focus on the income growth of the middle class and brought the emergence of political goals for economic democratization which widely regulates large conglomerates through stringent amendments to the Korean competition act, the Monopoly Regulation and Fair Trade Act (hereinafter the MRFTA). On the contrary, opposing critics assert that there is an intrinsic problem within the policy on the minimum wage increase and income-led growth itself They called for an innovation-led growth policy to revitalize the economy for the benefit of the public [Kim G.H., 2017; Lee, 2018; Kim, 2018].
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
