On May 15 at the 63 Convention Center in Yeouido, Seoul, the Korea Information Society Development Institute (KISDI, President Kim Dae-hui) hosted the Data-Based Policy Simulation Conference together with the Economics, Humanities and Social Research Council and the National Policy Committee’s offices of assemblymen Min Byung-doo, Jeon Hae-cheol, Lee Hak-young, Yoo Dong-soo, Seong Il-jong, and Kim Seong-won.

The goals of the Data Based Policy Simulation Conference were to increase understanding of data in the context of society and the economy, to promote the sharing of information, and to identify research areas in convergence and propose ‘national governance with future forecasting’ as a new direction for the nation. The participants in the conference were mostly researchers from the Electronics and Telecommunications Research Institute (ETRI) and the Economics, Humanities and Social Research Council, and various industry sectors. The conference program consisted of seven presentations and a concluding discussion.

The first presenter was Project Leader Baek Ui-hyun from ETRI, who introduced a simulation model for forecasting such matters as how the participation rate of elderly people in economic activities, basic pension take-up rates and poverty rate trends would be affected by changes in the government’s elderly welfare policy.

The second presenter was Director Seo Joong-hae of the Economic Information Center at the Korea Development Institute, who introduced a simulation model for predicting the economic impact of the technological innovations triggered by the Fourth Industrial Revolution. In particular, Director Seo focused on the substitutional and complementary relationship between capital and labor formed by technological changes.

The third presenter was research fellow Goh Jae-yi, who currently heads the Center for Social Welfare Finance at the Korea Institute for Health and Social Affairs. He stressed that as the share of expenditure on social welfare, healthcare and policy increase in fiscal management, research is needed to increase their effectiveness and results. He then introduced a model for simulating and predicting the long-term effects of paying child welfare benefits and social security on the finances of local governments.

The fourth presenter was Shim Chang-seop, the head of the Division for Atmospheric Environment at the Korea Environment Institute. On the issue of fine dust, he proposed a set of policies based on an evaluation of the risks of fine dust emanating from major domestic industrial sites and other sources using a simulation model.

The fifth presenter was Byun Se-il, the head of the Real Estate Market Research Center at the Korea Research Institute for Human Settlements. He introduced cases of using system dynamic methods to predict changes in housing prices and user costs as a result of changes in the government’s housing policy, including adjustments to property tax and sales tax, the extension of the period of low interest loans/redemption, and the expansion of subsidized housing.

The sixth presentation was given by Director Seo Won-seol of SAP Korea, who introduced the case of a Big Data project carried out by the Indiana state government in the US. The project radically improved the infant mortality rate by consolidating data held by the government and public organizations and utilizing a machine learning model.

The seventh presenter was Group Leader Jeong Yong-chan of KISDI. He stressed the need to improve the proper timing of policies through studies on the convergence effects of important national issues and precise predictions of the future through a data-based policy-making system, and also suggested that a data analysis platform based on economic/humanities/societal studies be deployed to that end. He then explained the composition and role of the platform for establishing a national agenda and strengthening capability to respond early to risks and internal/external environmental changes.

The final discussion session was moderated by Director Park Jin of the National Assembly Futures Institute and attended by Professor Moon Myung-jae of Yonsei University, Professor Lim Chae-won of Kyunghee University, who currently serves on the Presidential Committee on Policy Planning, Kim Seong-joong, who heads the Government Innovation Planning Bureau at the Ministry of the Interior and Safety, and Dr. Son Seung-won from ETRI. These experts discussed the need to establish a culture of cooperation and sharing between research agencies by sharing Big Data and utilizing data-based policy simulation techniques to develop strategies and government policy directions for improving capabilities in the field of policy planning.