President Park Geun-hye pledged Thursday to overhaul South Korea’s research and development system, underlining technology as the key strategy for the country’s survival and long-term growth.

As part of the implementation plans, an additional research fund of 400 billion won ($344 million) is to be injected into universities over the next two years to give an impetus to research and development. A presidential council on science and technology will also serve as a control tower for the country’s overall policies in the field.

“Our country has achieved an astonishing growth, but now finds itself in a nutcracker position, trapped between developed and developing nations,” Park said during the council’s inaugural meeting held at Cheong Wa Dae.

The panel was created upon the president’s move to improve South Korea’s R&D efficiency and to map out a blueprint for the nation’s long-term technology policies.

“We now face a new risk, pressed by Japan’s rebounding competitiveness backed by its weak yen and China’s technological advancement,” she added, referring to the phenomenon as “neo-nutcracker.”

Strategy consulting firm Booz Allen Hamilton first used the term “nutcracker” back in 1997 to describe South Korea’s disposition as being sandwiched between low-cost China and efficiency-focused Japan.

To overcome such a crisis and to secure new momentum, the president stressed the need for the government to minimize its restrictions.

“When it comes to core science technology policies, the government will adopt a top-down strategy, playing its role as control tower between departments and suggesting long-term visions,” she said.

“But as for the rest, we will take a bottom-up approach so as to maximize the creativeness and autonomy of the private sector.”

Under the strategy, government-led R&D projects will be subsidized by up to 600 billion won in the budget next year, to be used for private projects. Also, the state-funded R&D funds for universities will be increased from the current 1.1 trillion won to 1.5 trillion won by 2018, according to Cheong Wa Dae.

Up-and-coming researchers will be offered a kick-off fund of up to 30 million won per year for a maximum of five years, while those picked as excellent practitioners may receive up to 100 million won.

“I hope that researchers, with this expanded autonomy, endeavor further to produce the best results possible and to prevent illegalities,” Park added.

”I will, in response, lead a state strategy project to expand the leverage of their technology.”

By Bae Hyun-jung (tellme@heraldcorp.com)