“Government’s Korean New Deal to be realized as Digital New Deal in Gyeonggi Province” – Governor Lee proposes blueprint for public delivery app

Createdd 2020-10-13 Hit 13

Contents

○ Gyeonggi Province Governor Lee Jaemyung announces public delivery app (Delivery Express) as province’s New Deal project during Korean New Deal strategy meeting
○ “The Digital New Deal for Gyeonggi Province aims to relieve the unequal data structure and shall proceed in line with the Korean Digital New Deal to close the digital divide.”
○ The public delivery app is a resident-participatory social overhead capital project for the establishment of a fair digital environment that aims to prevent a corporate data monopoly while expanding consumer choices. It is expected to create a fair digital economic market.
○ Public delivery app to be launched in early November; expected to revitalize local economy through linkage with local currency per blueprint

Gyeonggi Province Governor Lee Jaemyung announced that the ongoing development of a public delivery app aims to improve the unequal structure of data privileges that is currently focused on certain companies, proceeding in line with the directions of the government’s Korean New Deal initiatives.

During the Korean New Deal strategy meeting hosted by Korean President Moon Jae-in at the Blue House Youngbingwan (President’s Guest House) on October 13, Governor Lee referenced remarks made by President Moon and said, “The Digital New Deal is creating a ‘data dam’ that is the foundation of the digital economy. It is our task to reduce the digital divide and create an inclusive digital economy.”

Governor Lee introduced the establishment of a public delivery app as the main Digital New Deal of Gyeonggi Province, identifying the current situation as “a serious data monopoly by certain companies that are allowed to collect and use data, while consumers, who are the owners of such data, are excluded.” He added, “Gyeonggi Province is promoting the operation of a public delivery app as part of building a ‘resident-participatory, fair digital SOC’ in order to establish data sovereignty through public participation and to create a fair market economy. The app is set for a pilot operation next month.”

Governor Lee continued, “The key aspect of the Gyeonggi Province-exclusive public delivery app is the establishment of a virtuous cycle through which the benefits of the data economy go to our residents who are economic subjects themselves.” He stressed, “By improving the unequal structure in which data benefits are concentrated only on some companies and providing incentives to consumers, we will create a structure in which consumers, small business owners, companies, and platform workers can all benefit and coexist.”

Governor Lee also revealed the plans to link the public delivery app with local currency so as to revitalize the local economy.

“It is expected that the public delivery app promoted by Gyeonggi Province will have the effect of revitalizing the local economy by linking the service with local currency,” Governor Lee said, adding, “Local currency is currently showing effectiveness in revitalizing local commercial districts by shifting people’s consumption patterns from large stores such as hypermarkets to street shops, which are the capillaries of the local economy.”

He also pointed out, “This is supported by the fact that 64% of BC Card’s sales come from stores with sales exceeding KRW 1 billion, while local currency is most frequently used at stores with sales of less than KRW 300 million of (36.7%).”

Governor Lee ended his remarks by saying, “Public delivery apps will play an exemplary role in creating a fair and healthy market environment by resolving unfairness in the platform industry. Gyeonggi Province will do its utmost to address the platform monopoly, the key of the digital economy, and to make competition possible.

Meanwhile, the province announced earlier in July its initiatives for the New Deal of Gyeonggi Province, including plans to allocate a total of KRW 5.3842 trillion (provincial funds: KRW 1.331 trillion) by 2022 to 9 core tasks and 69 main projects in the following three areas: data in the hands of Gyeonggi Province residents; low carbon initiatives with Gyeonggi Province residents; and safety net realization for Gyeonggi Province residents.

The Gyeonggi New Deal policy will be divided in three pillars: Digital, Green, and Human. An amount of KRW 218.5 billion will be allocated for Digital, while KRW 2.7905 trillion has been earmarked for low carbon initiatives. Furthermore, for safety, the core of Gyeonggi New Deal, a fund of KRW 2.3752 has been secured.

Gyeonggi Province’s public delivery app “Delivery Express” is one of the main projects of the Digital New Deal. The province plans to start trial operation of Delivery Express in November this year.

After receiving applications for affiliate members of the app in Hwaseong, Osan, and Paju, cities where trials will be occur, a total of 3,699 applications were received over a six-week period, exceeding the targeted 3,000 by 20% and indicating positive prospects for the service.