The “creative economy action plan” announced by the Korean government in June 2013 represents the Park administration’s comprehensive approach to advance this agenda.14 The goals of this plan are to create new employment and industries through creativity and innovation, strengthen Korea’s global competitiveness, and establish a society “where creativity is respected and manifested.” It includes significant
The creative economy action plan aims to foster a ‘Silicon Valley-like’ venture funding ecosystem
focus on eliminating financial and regulatory barriers to entrepreneurs and SMEs, and aims to foster a “Silicon Valley-like” venture funding ecosystem by improving the environment for financing and increas- ing the investment capital available to entrepreneurs.15 Action steps include tax incentives to stimulate angel investment and reinvestment by successful entrepre- neurs in new startups; new funds to support startups and mergers and acquisitions (M&As), including through crowdfunding; and regulatory reforms to remove barriers to technology-related M&As. The plan reaches beyond Korea’s borders with incentives for overseas Koreans to invest in and provide mentor- ship to domestic entrepreneurs, creation of an “entrepreneur visa” to encourage highly skilled foreigners to start businesses in Korea, and support for startups entering global markets. Other compo- nents include upgrading industry productivity through ICT and software convergence; improving linkages among industry, academia, research institu- tions, and local governments; increasing basic research funding by 40 percent by 2017; and improving infrastructure for generating, protecting, and using IP.
Closely linked are measures to improve SME productivity. Goals include increased funding and support for SMEs to enhance their technology devel- opment and commercialization capabilities; fostering new synergies between large and small companies; and strengthening legal frameworks to prevent IP and technology leaks. The Korean government has pledged to prioritize SMEs in transferring publicly funded technologies from universities and institutes, and to support them in recruiting, training, and retaining skilled workers.