Gov't to designate 'new growth engine industries' for smaller firms

SEOUL (Yonhap) - The government plans to designate software, wind and solar power, stem cell and other industries as new growth engines for small- and medium-sized firms this week, with trillions of won to be invested in the sectors, an official said Tuesday.
The move is in line with President Lee Myung-bak's "ecosystemic development" campaign, which calls for shared growth between conglomerates and smaller companies as part of efforts to narrow growing social inequalities, including the gap between rich and poor.
In a parliamentary budget speech on Monday, Lee said that joint growth between conglomerates and smaller firms determines national competitiveness and that the government will identify "ecosystemic development-type" projects and provide financial and institutional support.
"We determined the industries based on total industrial trends and the level of technology of our country," a presidential official said. "The most important criteria was whether they fit well for smaller firms and how many jobs they could create."
Star software entrepreneur and professor Ahn Cheol-soo once co-headed the government commission tasked with selecting the industries until last month, officials said.