Remarks to Introduce Dr. Sukwoo Hong,
Minister of Knowledge Economy, Republic of Korea

December 6, 2012

Thank you all for joining us this afternoon – for this discussion on a topic that all of us at the World Bank Group will find compelling: “Korean Industries: Past, Present, and Future.”

It’s a pleasure to welcome all of you – and to welcome the Minister of Knowledge Economy of the Republic of Korea, Dr. Sukwoo Hong.

At the Bank Group, we have long recognized Korea as a leader in designing and implementing pragmatic ways to spur the economy’s industrial development.

By focusing on spurring innovation, continuously upgrading quality, and achieving strong results, Korea has brought about a truly remarkable transformation of its economy and its society.

In a very short time-span, Korea has gone from Being a recipient of aid to being one of the world’s strongest economies – and a generous donor of aid.

Just 50 years ago, Korea was emerging from a war that had left its economy in ruins.

But by devoting enormous resources – in a targeted way – to education, advanced job-skills training and innovation-focused R&D, Korea has steadily climbed from postwar poverty to wealthy-country status.

Crucial to that process, Korea designed a deliberate, pragmatic strategy to achieve its far-reaching transformation.

Through targeted public-sector interventions, the country’s strategy has been critical in driving private-sector innovation – and in causing the country to migrate “up the value chain” in the global economy.

One critical element has been Korea’s commitment to what it calls its “knowledge economy” – the sectors of the economy that are driven by higher-level skills, technological ingenuity, and intense investment in human capital.

Some traditionalists here in Washington may reflexively shy away from using the phrase “industrial policy.”

Even now – even after the old “Washington Consensus” has been shaken, amid the deep economic downturn of the past four years – some people remain suspicious of assigning a large role to the public sector.

Yet, if ever there were a strong example of the positive impact of a deliberate, well-designed competitive strategy – with the public and private sectors working very closely together in a strategic partnership – it is the Republic of Korea.

Modernizing our approach to such strategies – and making sure that they are sensitive to the signals that are sent by marketplace demand – the Bank Group’s new approach focuses on what we call “Competitive Industries.”

Within the FPD Network, our Competitive Industries and Innovation teams are now working with many client countries who look to Korea as a role-model – and who see its success as an inspiration for their own efforts. The work of the Ministry that Dr. Hong now leads – the “Ministry of Knowledge Economy,” or the “MKE” – has been at the heart of Korea’s strategy.

Formerly called the “Ministry of Commerce, Industry and Energy” – until its mandate was expanded in 2008 – the Ministry oversees the strategy affecting a wide range of industrial sectors: including major industries, trade, investment, energy and green growth.

Moreover, the MKE maintains a strong dialogue between the public sector and many industry associations, and among an array of industry-focused Chambers of Commerce, throughout Korea.

That dialogue provides a channel for continuing consultations about how Korea should pursue its development priorities.

As Minister Hong recently noted, when he met with our President Jim Kim in Seoul in mid-October: The Bank Group and the government of Korea share many common interests – including poverty reduction, industrial development, innovation, technology, and inclusive and sustainable growth.

The Bank Group is delighted to continue deepening our partnership with the Republic of Korea.

In October, during President Kim’s visit to Seoul, the Bank and the government announced the opening of a new World Bank Group Office in Korea in 2013.

That new office will deepen our joint efforts to find “sustainable development” solutions for emerging countries. It will focus on infrastructure; communications technology; the financial sector; and knowledge-sharing.

Together, we also announced the launch of a new, $90-million fund to support developing countries – the Korea-World Bank Partnership Facility, which will support a broad range of economic development opportunities. One vital element of that effort will be drawing on Korea’s expertise in such areas as economic development policy, advanced technologies, infrastructure and the financial sector.

The Network that I lead within the Bank Group – the Network on Financial and Private Sector Development – has also been delighted by our deepening partnership with Korea.

That strong relationship has already resulted in Korea’s strong support for infodev, which encourages entrepreneurs and incubates advanced technologies; support for our Special Economic Zones program, with a specific emphasis on “Low-Carbon Zones”; and a targeted knowledge-exchange that supports our clients. As one example of that knowledge-exchange: A senior member of the Korea Development Institute is joining a high-level knowledge-exchange with the Planning Commission of India.

Our Network is also looking forward to drawing on the experience of Korea as we implement our “Competitive Industries and Innovation Program” – which seeks to help our client countries build globally competitive industries, with a special emphasis on upgrading their innovation capacity.

Korea’s expertise in this area will be indispensable in our efforts.

So, we are very pleased to have the Minister here with us today, to describe Korea’s remarkable record of achievement.

By way of personal background: Dr. Sukwoo Hong became the Minister of Knowledge Economy of Korea in November 2011.

He had joined the civil service in 1979, and he has held a number of posts at the Ministry. Before becoming Minister, he served as President and CEO of the Korea Trade-Investment Promotion Agency from June to November 2011; as Vice Chairman of A.T. Kearney Korea from 2010 to 2011; and as Administrator of the Small and Medium Business Administration in 2008.

He earlier served as Deputy Minister for Trade & Investment Policy in 2007, and as Director General for Electronics, Textiles and Chemical Industries in 2006.

Dr. Hong earned a bachelor’s degree in economics from Seoul National University in 1980; a master’s degree in public administration from the Kennedy School of Government at Harvard University in 1987; and a doctorate in public administration from Sungkyunkwan University in 2004.

And now it’s a great pleasure to turn over the podium to our esteemed guest, Minister Sukwoo Hong.