'Transport, construction policies will bolster sustainable growth'

Minister of Land, Infrastructure and Transport Kim Hyun-mee Courtesy of Ministry of Land, Infrastructure and Transport

Minister confident about digital- green-led economic recovery

By Lee Kyung-min

The government will swiftly devise and implement policies involving the digitization of information involving land, spatial data and social overhead capital (SOC) as well as green remodeling, as part of its efforts to lay the groundwork for digital, green industries to thrive, according to country's the land minister.

The key objectives ― to create synergy with innovation-oriented mobility and transport services ― are part of the Korean New Deal, a key policy initiative of the Moon Jae-in administration defined by a long-term investment in the two industries with great job creation and export potential.

The drive, the minister said, will provide much-needed momentum for an economic recovery amid the greater- and longer-than-feared fallout from the COVID-19 pandemic, offering more fundamental and effective solutions, in line with the administration's broader plan for sustainable growth.

This will be pursued with task-specific efforts to lower carbon emissions, with the gradual yet ultimate goal of significantly reducing reliance on fossil-fuel generated energy, an initiative drawing a global wave of support amid heightened awareness of climate change.

"It is all about sustainability," Minister of Land, Infrastructure and Transport Kim Hyun-mee said in an e-mail interview with The Korea Times.

The original New Deal enacted under U.S. President Franklin D. Roosevelt is mostly associated with the construction of the Hoover Dam, part of a large-scale civil engineering project. Korea had a similar initiative introduced by the previous Lee Myung-bak administration in 2008 ― the Four Major Rivers Restoration Project.

But unlike those, the Korean New Deal seeks long-term, future-oriented growth by closer integration between digital and green projects, which are expected to bolster the competitive edge of the country known for its strong information technology capabilities.

"The underlying policy objectives are about overcoming the virus-sparked economic crisis and ensuring public safety and security via technology-mediated enhanced planning and response measures. Korean policies can and will be applicable in other countries since many countries have shared concerns about solving urban planning and effective land and transport management," said Kim, who took office in June 2017 and is the longest-serving transport minister.

Some 5.1 trillion won ($4.4 billion) will be spent on the Korean New Deal in 2020, as part of a five-year plan that will cost 160 trillion won. Of the 5.1 trillion won, digital and green initiatives will be allocated 2.7 billion won and 1.4 trillion won, respectively. About 1 trillion won will be used to strengthen social safety nets, while 2.5 trillion won will be used for anti-virus and disaster prevention measures.

Digitization

The ministry will set up the Cooperative Intelligent Transport Systems (C-ITS), a key component of a next-generation Intelligent Transport System (ITS), on 4,075 kilometers of expressways nationwide by 2025. The technology is needed for autonomous driving.

A 3D underground map of 52 cities will be created by December to facilitate safe and efficient management of subsurface facilities including water, sewage and gas pipes, as well as electricity and communication equipment. The scope of the map will be expanded to detail all cities and counties across the country by 2022. This is part of advancing "digital twin technology," a ministry-led project to create a 3D map of the entire country.

Also, artificial intelligence-powered smart logistics centers with automated sorting and storage of a large quantity of diverse freight will be set up. The ministry plans to build 50 such centers per year.

Another key plan is the use of "smart construction" whereby Building Information Modeling (BIM), an advanced construction technology, will help builders improve productivity and safety via relevant information that is stored digitally.

This will also enable the public to make a better, more informed choice due to virtual reality technology-mediated experiences in choosing houses, a step toward bridging the widening information gap between people who are digitally savvy and financially secure, and those who are not.

These efforts will be backed by an investment of 500 billion won in research and development (R&D) in the sector, which the minister says will help Korea see the next unicorn companies in the fields of construction technology and property technology.

"Fostering startups backed by the digitization of relevant information requires a commitment-driven large initial investment, a reason why we will maintain policy consistency to help improve predictability for businesses to create sustainable growth models," said Kim whose political career has been solid since she entered in politics at the age of 26.

Minister of Land, Infrastructure and Transport Kim Hyun-mee Courtesy of Ministry of Land, Infrastructure and Transport

Innovative mobility services

The ministry will also foster Urban Air Mobility (UAM), a sector whose success will hinge largely on cooperation to boost technological capabilities between relevant businesses and institutional frameworks to be shaped by the government.

"In June, we outlined a policy encompassing ways to set up safety standards, a sustainable ecosystem that bolsters the growth of all participants including drone deliveries, and to promote overall improvement and further development of the industry. Necessary processes will be undertaken to facilitate the certification of new technologies that will help budding firms increase their growth potential," Kim said.

Showing keen interest in the project are major conglomerates including Hyundai and Hanwha, among 37 businesses and academic organizations.

Hydrogen-powered Fuel Cell Electric Vehicles (FCEVs) and Electric Vehicles (EVs) are another sector the ministry is seeking to promote.

Eight large recharging stations for EVs are in operation at express highway rest areas and the number will be increased to 60 nationwide by 2022.

The government will revise laws by the end of the year to allow the establishment of the stations in and around parking spaces in the city, including sports facilities and stadiums.

Drivers of EVs and FCEVs have only had to pay half of toll fees since September 2017. The government will also build more parking spaces for the two types of new vehicles starting next year.

"I have been using a hydrogen-powered vehicle myself since I took office, to show my commitment to eco-friendly driving and to identify the hydrogen-powered vehicle industry as a new source of growth. We will seek to set up the infrastructure needed for the industry to promptly develop new models to increase sales not only in Korea but also overseas," she said.

President Moon Jae-in said Oct. 30 that the government will invest 20 trillion won over the next five years to build 500,000 small, fast-recharging facilities for EVs near residential areas nationwide, and 15,000 at key locations frequented by drivers by 2025.

A hundred large refilling stations for FCEVs will be set up in Seoul and the surrounding Incheon and Gyeonggi Province by the early half of 2021 and the number will be increased to 450 by 2025.

Low-carbon drive

Reducing carbon emissions will be a daunting priority for the ministry given 60 percent of the amount that must be reduced by 2030 comes from buildings and transport systems.

The ministry will meet the goal via "green remodeling," a project that will require 1.3 trillion won to be spent on improving indoor air quality and heat retention in government-rented homes and old public buildings including community health centers and state-run hospitals and daycare centers by 2022.

The ministry said 35,000 jobs will be created and greenhouse gases will be reduced by 280,000 tonnes, equivalent to planting 2.01 million trees.

The use of public transport will be promoted including the Great Train eXpress (GTX) and Bus Rapid Transit (BRT), and a greater number of charging stations for EVs and FCEVs will be built.

"Staying the course is more convenient and easier for the government and the corporate establishment. But if someone has to do the hard work of calling for change for a better future, I am happy to do the job," she said.