IN THE SHADOWS AWAY FROM THE GLAMOROUS ECONOMIES OF ASIA, S. KOREA IS STEADILY BUILDING UP & RAPIDLY MODERNIZING ITS SIZEABLE ECONOMY. HERE'S HOW.
As we inch closer to the dawn of Industrial Revolution 4.0, businesses, individuals & economies are gearing up for the transformative changes. In this race to the top, one country has emerged as a clear frontrunner: SOUTH KOREA Let's take a look at some possible reasons why:
A SAVVY NEW DEAL
The Korean economy was one of the worst-hit due to the pandemic. Being an export-driven economy, the sudden fall in global trade had devastating effects. S.Korea was one of the first countries to enter recession in 2020. President Moon Jae -in unveiled an ambitious 160 trillion won (US $62 billion) mega plan to create jobs, digitize the economy & advance sustainable development. Dubbed as the "New Deal", the plan is a very futuristic vision of the Korean economy. The main aim of the plan is to ease S.Korea's transmission to IR 4.0, creating millions of jobs in emerging fields like AI & Data analytics. The plan envisions the integration of AI, 5G & IoT for modernizing the industries.
GOING GREEN
The Koreans are laser-focused on sustainable development. Zero Carbon emissions by the year 2035 is one of the landmark goals of the New Deal. For this, the government is planning to build green, digitally smart primary schools, invest around 11 trillion won in research & development of renewable energy and adopt solar panels & green heating in public buildings. 45.9% of the budget is allotted such eco-friendly endeavors. These developments have been appreciated by environmentalists all around the globe. In the fight against climate change, such planning can be really fruitful in the long run.
ALL ABOUT 5G
5G is the centerpiece of the plan. To make emerging concepts like big data, IoT & digital twins feasible, 5G is a must as these technologies require rapid data speed which only 5G can provide.
As illustrated above, South Korea is already well ahead of nations like China & the USA in terms of 5G adoption. This bodes well for its future prospects of the plan as it already has a solid base to work upon.
DIGITAL PIVOT
Apart from all this, S.Korea has made a concrete plan to emerge as a digital hub. A huge sum of money (18 trillion won) has been set aside to create data centers to store and process data. For AI, data is everything. AI algorithms need tons of data to process & be more efficient. Hence, this is another step in the right direction. Electric Vehicle is also a top priority. A manufacturing hub is in the works for the same, positioning the country in good stead from an export as well as domestic demand perspective in the presence of indigenous automakers like Kia, Renault & Hyundai. Other noteworthy initiatives are blockchain, smart healthcare & digital twins. S. Korea is already amongst the world's leading R&D spenders (as a % of GDP) indicating a culture of innovation promoting bureaucrats and policymakers.
CONCLUSION
These developments bode well for the future of S.Korea. Usually, its more eccentric and isolationist neighbor captures the headlines for all the wrong reasons (be it nuclear shenanigans or wacky dictators). The world may not notice the grind & foresight but we may just have a future economic superpower in the making. A Classic Darkhorse!
THANKS FOR READING!
FOR MORE ON STUFF LIKE DIGITAL TWINS & BLOCKCHAIN, YOU MAY WANT TO CLICK BELOW:
Comments