201506afutureofinnovation en

A Future of Innovation The Republic of Korea

Achievements of the Park Geun-hye Administration

Reinventing the Nation Strong Drive to Normalize Abnormalities • The Park Geun-hye Administration has worked to reform the public sector through a new wave of innovative policies.

• By late 2014, the debt-to-equity ratio had gone down to 220% and credit ratings at major public institutions had risen, showing the success of Korea's innovative policies despite the global economic downturn.

• Our goals are to eradicate corruption by launching a focused investigation into all illegal activities and abuses and to build a disaster response system that can cope with all kinds of accidents and hazards that threaten public safety.

Economic Innovation Three-year Plan for Economic Innovation: Preparing for 30 Years of Growth • While economic recovery in countries around the world has stagnated since the global economic downturn began, the Korean economy has continued to improve.

• This can be seen in indicators such as GDP growth rate, which reached 3.3 percent in 2014. (In 2012, it was 2.3 percent and in 2013, 3.0 percent.)

• We broadened the reach of Korea by concluding free trade agreements with five countries, including China.

• The Park Geun-hye Administration corrected abnormal systems and what used to be customary malpractices to strengthen Korea's economic fundamentals and shift toward a more dynamic and innovative economy.

• It has worked to achieve a balance between domestic consumption and exports as part of the Three-year Plan for Economic Innovation, which is preparing Korea for 30 more years of growth.

Cultural Enrichment Korean Pop Culture: Taking the World by Storm • Various policies were introduced to allow people to enjoy the arts, sporting events, museums and theaters as part of their daily lives, boosting the quality of life and contributing to the happiness of the people.

• Korean actors and musicians have traveled the world with their movies, soap operas and concerts and have captured the hearts of audiences in numerous countries.

• Building on the global reach of the arts, mass media and music scenes, Korea succeeded in attracting over 1.4 million international tourists in 2014.

Building a Foundation for Unification Trust-Building Process on the Korean Peninsula: A Principled Approach to North Korea • To assure peace on the Korean Peninsula, we must secure the support of the international community to solve the North Korean nuclear weapons issue and to prevent any provocation.

• Consistent efforts have been made to normalize inter-Korea relations, based on the Trust-Building Process on the Korean Peninsula.

• We aim to resume exchanges and other projects like reunions for separated families and high-level talks between officials of both governments, in an attempt to rebuild the unity of the Korean people.

• Finally, we have sought out the international community's sympathy and support for our Northeast Asia Peace and Cooperation Initiative, aimed at establishing a firm system of cooperation in both politics and security across Northeast Asia.

Reinventing the Nation Out with the Old and In with the New: Establishing Law and Order by Eliminating Abnormal Practices

Public Sector Reform US$

23

billion

Debt reduction at public enterprises

96 %

290 out of 302 public enterprises have completed managerial improvements.

• State-run enterprises that are in urgent need of oversight are undergoing strict debt-reduction plans as the Government seeks to reduce the total amount of debt at such institutions by US$110 billion between now and 2017.

• Irrational practices due to lax management of public enterprises are to be identified and phased out.

Source : Ministry of Strategy and Finance, 2014.

Rooting Out Corruption • Stern measures have been taken to break collusive ties and to ensure thorough investigation of both public officials and businesspeople who operate in the state-run business sector.

• An overall plan to prevent the misuse of government subsidies is being devised, with legislation being drafted that would prevent fraudulent use. Similar in some respects to the False Claims Act in the United States, it is called the Act on the Prohibition of The Improper solicitation and Graft Act.

Bolstering Disaster Response and Safety Awareness Across the Nation • Thedisasterresponsesystemtodealwithaccidentsandcatastrophes, maritime traffic control and safety-related organizations and systems will all be realigned to become more effective.

• Management guidelines for the treatment of potentially harmful chemicals are to be reassessed to ensure a professional and systematic approach in dealing with chemical-related accidents.

Economic Innovation Preparing for 30 Years of Growth: The Three-year Plan for Economic Innovation

Largest record trade figues

Largest record trade figures

1.1

US$

trillion

Largest record export figures

US$

573.0

billion

Laying the Steppingstones for Economic Growth • Korea received praise at the recent G20 summit for being an exemplary model of structural reform.

• “…a dose of bold structural reforms to lift trend growth…”

Largest record surplus

US$

47.4

billion

(Bloomberg, Feb. 25, 2014) • “…a reform package that could be a model for the region and many

other parts of the world...” (The Wall Street Journal, Feb. 27, 2014)

Source : Korea International Trade Association, 2014.

Steadily Improving Despite the Global Economic Downturn • For two consecutive years, the Korean economy has achieved a

"triple-crown" status: trade exceeding US$1 trillion, record exports and record trade surplus.

Korea Now Links 73.4 Percent of World GDP Through a Network of FTAs • With the recent addition of China, FTA negotiations have been concluded with five additional countries, completing

a worldwide network linking East Asia, Europe, North America and Oceania.

- Now, 15 FTAs are in effect or are in the process of ratification, involving a total of 52 countries. Negotiations with Australia, China, Vietnam, Canada and New Zealand were concluded in 2014 and 2015, with the FTAs with Australia and Canada having been ratified and gone into effect.

• With the effectuation of the remaining FTAs, trade with FTA partner-countries will have increased by a dramatic 62.7

percent and an increasing number of SMEs are winning new contracts overseas.

• The number of jobs increased by 533,000 in 2014, substantially more than previous annual growth rates since

2005 of some 200,000-300,000 jobs per year.

KOREA'S FTASEffect In Effect •Chile •Singapore •European Free •Trade Association Under Negotiation

‐

• ASEAN • India • EU • Peru

• U.S. • Turkey • Australia • Canada

Concluded

• Colombia • China • New Zealand • Vietnam

• Korea-China-Japan • Indonesia Comprehensive Economic Partnership Agreement(CEPA) • Regional Comprehensive Economic Partnership(RCEP)

Cultural Enrichment Promoting Happiness: Making the Arts, Cultural Activities and Sports Key Aspects of Life

Contributing to Cultural Diversity in the World • Going beyond the better-known aspects of pop culture, like

music, performing arts, dramas and movies, attention has now slowly begun spreading to other areas as well.

• As the popularity of pop culture remains unabated, a vast array

of other areas, both traditional and modern, is gaining recognition. The Korean alphabet, known as Hangeul, the Korean language, Korean cuisine, traditional mulberry paper, franchises, tourism, fashion, medical care, video games, sports, publishing, logistics and other areas have all seen growth in global recognition.

Making the Arts More Accessible • Every last Wednesday of the month has been designated as

"Culture Day" in an effort to increase access to a whole range of cultural activities.

• For example, programs like the traveling movie theaters,

libraries and musical concerts, which seek out audiences in neighborhoods or districts that lack such opportunities, are increasingly available.

• The Government has worked hard to eliminate any blind spots

in terms of access to the arts, spreading the spirit of the humanities and promoting exercise as part of everyone’s daily routine.

Becoming One of the Top 20 Tourism Destinations

20 14.2

• In 2014, the number of inbound visitors to Korea reached a

record high of 14.2 million. Estimated tourism revenue reached US$17.6 billion, placing Korea 18th in the world rankings. This is the result of focused investment in high value-added sectors, such as MICE tourism (meetings, incentives, conferences and exhibitions), medical tourism and cruise tourism.

10

Stepping Up in the World of Sports Major upcoming international sporting events to be held in Korea: • July 3-14, 2015: the 28th Summer Universiade Gwangju 2015 2012

2014

2017

Number of Inbound Tourists (units : million)

• October 2-11, 2015: the CISM Military World Games Mungyeong

Korea 2015 • February 9-25, 2018: PyeongChang 2018 Olympic Winter Games

Building a Foundation for Unification A framework for Peace on the Korea Peninsula and Across Northeast Asia

Preparing for Peaceful Unification • A Presidential Committee for Unification Preparation has been

established for the first time. Expanding civilian-level exchanges, addressing the issue of separated families and creating a World Eco-Peace Park in the DMZ are some of the six suggested undertakings.

• Efforts to improve human rights and the quality of life for the

North Korean people and international policy cooperation have been strengthened.

Pursuing the Healthy Development of Inter-Korea Relations • Korea is committed to the principle of resolving issues through

substantive dialogue and constructive normalization.

• As a means of recovering a sense of common identity between

South and North Koreans, efforts have been made to increase social and cultural exchanges.

• The Government has garnered the support of world leaders for its

Trust-Building Process on the Korean Peninsula and for peaceful unification.

Securing Support from Key Nations for North Korean Denuclearization and Unification • Based on the trust that exists between President Park and the

leaders of the United States and China, Korea's diplomatic stance on unification was able to gain international support.

• With the strength of the Korea-U.S. combined forces and with

close international cooperation, the consensus on zero tolerance for a nuclear-armed North Korea has widened.

Gathering International Support for the Northeast Asia Peace and Cooperation Initiative (NAPCI)

「Silk Road Express (SRX)」

Moscow

Ulan-Vde Dandong

Zhangzhou

Sinuiju

• A consensus on and support for the NAPCI was confirmed Najin

once again at the Northeast Asia Peace and Cooperation Forum held October 28-30, 2014.

Busan

• Similar support has also been expressed by the United Nations,

Seoul Mokpo

the European Union and NATO as well as at the East Asia Summit of ASEAN on November 13, 2014.

Achievements of the Park Geun-hye Administration Reinventing the Nation Economic Innovation Cultural Enrichment Building a Foundation for Unification