The Ministry of Science and ICT announced on the 2nd that the Ministry recognized the private-led ‘Korean Language Proficiency Test Digital Transformation Project,’ organized by the National Institute for International Education under the Ministry of Education, as the first for-profit private investment software business.
The private investment-type software business system was introduced for the first time through the full revision of the ‘Software Promotion Act’ in December 2020 to allow private innovative technology and capital to be applied to the public system. Previously, public sector software development projects had been pursued entirely with national funds. The system was established to allow private companies to propose business plans as investment entities.
The private investment-type software business recognized this time went through a pre-qualification assessment by the National Information Society Agency and was comprehensively reviewed by an acknowledgment review committee consisting of nine experts from industry, academia, research, and government on May 17. The committee concluded that there is a need to utilize private capital and technology, specific plans for public-private cooperation, and the urgency of the project. The final acknowledgment review committee acknowledged the viability and suitability of private investment.
The National Institute for International Education’s ‘Korean Language Proficiency Test (TOPIK) Digital Transformation Project,’ operated as a for-profit business, is aimed at flexibly responding to the increasing demand for TOPIK due to the high interest in K-culture among foreigners. By allowing private investment of over 300 billion won in total for construction and operation until 2035 without government financial support, it reduces the time required for budget securing procedures and enables timely response to the increasing demand for test-takers. It is expected that private companies, based on their experience in establishing and operating public systems, will be able to expand into domestic and foreign markets.
Through the establishment of a digital evaluation system for TOPIK, candidates will be able to take the test conveniently anytime, anywhere, and the convenience of test-takers will be improved by digitizing and automating tasks such as test creation and scoring to reduce the time required for evaluation.
Song Sang-hoon, head of the Information and Communication Policy Division of the Ministry of Science and ICT, stated, “Through the private investment-type software business system, it is expected that innovative private technology and capital will be introduced in a timely manner, contributing to the advancement of the public software market. The significance of the Korean Language Proficiency Test Digital Transformation Project, as the first for-profit private investment software business, is significant. We hope that high-tech and specialized companies will participate in the project, bringing innovative services with their expertise.”