Prime Minister Jeong Urges Companies to Actively Invest Without Hesitation

Prime Minister Jeong Sye-kyun

[Asia Economy Reporter Kwangho Lee] Prime Minister Chung Sye-kyun said on the 20th, "At the beginning of this year, we expected the economic situation to improve based on the global economic recovery outlook. However, due to the spread of the novel coronavirus infection (COVID-19), domestic demand and exports are being significantly affected."

At the expanded trade strategy adjustment meeting held at the Trade Center in Gangnam-gu, Seoul, Prime Minister Chung stated, "Since our economy's trade dependence rate reaches 70%, if exports do not recover, it will be difficult to expect investment and economic vitality to recover."

He added, "I am well aware that companies are facing significant management difficulties due to production and export disruptions. We will alleviate the immediate difficulties by supplying 260 trillion won in trade finance, an increase of 28 trillion won compared to last year."

He continued, "To expedite the urgent import of materials and components, we will simplify customs procedures, apply special exemptions on customs duties for air transportation, and share real-time logistics status with domestic export-import companies and local logistics."

He also mentioned, "In response to concerns over small and medium-sized enterprises losing export opportunities due to exhibition cancellations, we will expand online video consultation meetings and support the expansion of export opportunities for regional companies by connecting overseas buyers through regional touring consultation meetings."

Furthermore, he expressed, "We will analyze the supply chains of six major sectors including semiconductors and automobiles, as well as key countries, and promote differentiated 'supply stabilization measures' tailored to their characteristics."

He promised, "We will expand trade finance support and achieve diversification of raw and subsidiary material supply chains through the introduction of industry joint purchasing and joint logistics methods. To promote corporate return for the production of important parts and job creation, we will also significantly strengthen support in taxation, finance, location, and smart factories."

Finally, Prime Minister Chung said, "As the self-proclaimed economic prime minister, I will actively support this. I urge companies not to be discouraged and to actively engage in enhancing investment and export vitality."