South Korea is envisioning a state-led digital transformation to resurrect the economy from virus ruins in a Korean-style New Deal project.

The new plan, referred to as the acronym “DNA+US,” is in the works for release in early June to guide the second-half economic policy.

The projects to be executed over the next two to three years will be led by online industries and digitalization of public services.

Vice Finance Minister Kim Yong-beom, in a briefing on Thursday, said employment was of the utmost importance to overcome the crisis.

“We would be returning to a new normal where virus prevention measures become part of everyday life,” Kim said. “Just as Korea has set a global standard in its response to COVID-19, we will take actions to fend off an economic crisis and ready ourselves for the post-coronavirus society.”

D stands for data, with the state planning to expand this year’s budget for data-related industries beyond the previously announced 10 trillion won ($8.15 billion).

N is for network and involves investment in fifth-generation wireless communication.

A refers to artificial intelligence, with officials planning to deploy AI-enhanced technologies to combat the coronavirus and other contagions. This includes plans to build an AI industrial cluster and groom AI specialists.

While “DNA” signifies the government’s continued focus on the ICT sector, “US” represents two new growth sectors that have gained prominence due to the coronavirus outbreak.

U stands for “untact,” a Konglish term meaning “no contact” that emerged out of widespread social distancing. Chatbots and virtual education are some of the new business areas poised for strong growth in the growing “untact economy.” The plan also includes ways to ride on the virus-led surge in online industries such as e-commerce and gaming.

S involves the digitalization of social overhead capital in transportation and construction. This includes urban development projects in state-designated smart cities in Sejong and Busan. A more detailed roadmap for the development of automated driving and other future mobility technologies is also in the works.

The New Deal project was declared by President Moon Jae-in last month to reinforce the state role to revive the economy.

Related ministries are taking actions to implement the new economic program. The Ministry of Trade, Industry and Energy plans to enact a new law that spurs digital migration using big data and AI technologies. Prime Minister Chung Sye-kyun ordered all ministries to release non-sensitive public data by next year to usher in a data economy that opens the free flow of information and ideas.

By Lee Ji-yong, Oh Chan-jong and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]