2022-2023 Free Education and Other Special Factor Easing
"We Will Also Maximize Opportunities Such as Global Growth Improvement and Semiconductor Industry Recovery"
[Asia Economy Reporter Jang Sehee] Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, said on the 22nd regarding South Korea's economic growth rate of 2.0% last year, "It is meaningful that despite difficult circumstances, the growth rate in the 4th quarter grew by 1.2% quarter-on-quarter, and the annual growth rate last year was maintained at 2%."
On the same day, Kim held an expanded macroeconomic and financial meeting at the Seoul Banking Hall and stated, "Recording an annual growth of 2% and exceeding the market's average forecast (1.9%) has provided an opportunity to gain confidence in the economic rebound going forward."
He added, "In a situation where global growth and trade are slowing down, our economy performed well, ranking 2nd among the 30-50 club countries and 5th among G20 countries." He continued, "It is very meaningful for the outlook of the economic trend that private investment, the core of economic vitality, turned positive for the first time in seven quarters compared to the previous quarter."
Regarding inflation, he emphasized, "The price decline caused by demand-side factors appears to be around 0.1 to 0.2 percentage points, indicating that the demand factors raised by some are not significant." He also mentioned, "It is expected that these special factors will ease after 2022-2023, when the expansion of welfare systems such as free education is completed."
Vice Minister Kim also pledged to achieve 2.4% growth this year. He said, "We will do our utmost to secure and spread momentum for economic rebound and definitely achieve this year's target growth of 2.4%."
He added, "We will promptly promote investments totaling 100 trillion won in three major sectors: 25 trillion won in private investment, 15 trillion won in private-public partnership projects, and 60 trillion won in public investment, and provide unprecedented support in terms of taxation and finance." Furthermore, he asserted, "We will also maximize opportunities such as improvements in global growth and recovery in the semiconductor industry."
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