President Moon: "Urgent Injection of 50 Trillion Won into Key Industries and Employment"...Drastic Measures for Employment Stability (Comprehensive)

Blue House 5th Emergency Economic Meeting... President Moon directs launch of Korean New Deal Policy Planning Team
Government to directly create 500,000 public + youth jobs
President Moon urges National Assembly to swiftly pass and immediately execute 2nd supplementary budget for emergency disaster relief fund... 3rd supplementary budget also planned

President Moon Jae-in is presiding over the 5th Emergency Economic Meeting at the Blue House on the morning of the 22nd. [Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] Amid the unprecedented 'employment freeze' forecast due to the novel coronavirus disease (COVID-19) crisis, the government announced extraordinary measures on the 22nd, injecting more than 50 trillion won into national key industries and the employment market. Additionally, the previously decided 100 trillion won 'Livelihood and Financial Stability Package' from the last meeting will be expanded by an additional 35 trillion won, totaling 135 trillion won.

President Moon Jae-in particularly requested the government to take special responsibility, saying, "Please promptly prepare a planning team to promote the so-called Korean-style 'New Deal' as a large-scale national project."

At the 5th Emergency Economic Meeting held at the Blue House that day, President Moon stated, "Key industries that have a significant impact on our economy and employment are under severe threat," and announced, "We will urgently establish a 'Key Industry Stabilization Fund' worth 40 trillion won to overcome the crisis and support employment." He added, "Through this, we will prevent key industries from collapsing," and expressed a strong will, saying, "We will mobilize all possible support methods, including equity investment and payment guarantees, beyond temporary liquidity support."

However, since public taxes are involved, he attached the premise of corresponding 'obligations.' President Moon emphasized, "We will prepare measures such as maintaining total employment, self-help efforts, and profit sharing," and said, "Support to companies will be provided only if employment stability is guaranteed, and measures to prevent moral hazard such as restrictions on executive compensation, shareholder dividends, and prohibition of treasury stock acquisition will be implemented." Furthermore, as the establishment of such a fund requires legislative amendments through the National Assembly, he requested, "I hope the National Assembly will cooperate in legislation to protect key industries and safeguard citizens' jobs."

Regarding the 100 trillion won 'Livelihood and Financial Stability Package' decided in the 1st and 2nd Emergency Economic Meetings, he said, "We will expand it to 135 trillion won by adding 35 trillion won," and added, "We will expand support for small business owners and corporate bond purchases by companies, and increase liquidity support even for companies with low credit."

President Moon also stated, "We will separately invest 10 trillion won in urgent employment stabilization measures to actively respond to the employment shock materializing due to COVID-19," and said, "While focusing on preventing an unemployment crisis, we will drastically reduce blind spots in the employment safety net and provide meticulous support."

Along with this, employment retention support funds that reimburse up to 90% of leave allowances for companies maintaining employment will continue to be expanded, and severely affected industries such as airline ground staff and duty-free shops will be additionally designated as special employment support sectors for targeted assistance.

President Moon Jae-in is presiding over the 5th Emergency Economic Meeting at the Blue House on the morning of the 22nd. [Image source=Yonhap News]

The government will also directly engage in job creation. President Moon said, "In a situation where the private sector's capacity to create jobs is insufficient, the government will create 500,000 jobs and provide them to the public," and added, "We will actively create public sector jobs and youth jobs to offer some relief to citizens struggling with employment difficulties, and promptly normalize the delayed public sector recruitment procedures."

He particularly emphasized, "At the national level, it is necessary to boldly promote large-scale projects for new job creation," and ordered the establishment of a planning team to promote the 'Korean-style New Deal.' President Moon stressed, "By promoting large-scale national projects with significant employment creation effects, we will not only create jobs but also uphold innovative growth in the 'post-COVID' era."

Emphasizing 'speed,' President Moon urged the National Assembly, "Please complete the execution of the 1st supplementary budget (supplementary budget) as quickly as possible, and swiftly pass the 2nd supplementary budget so that it can be executed immediately," and added, "Please also promptly proceed with the 3rd supplementary budget and legislation necessary for the emergency measures decided today." He further emphasized, "Considering that the National Assembly also faces an extraordinary period with a mountain of tasks, I ask for a magnanimous agreement for swift decisions."

Attending the meeting were Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, Minister of Trade, Industry and Energy Sung Yun-mo, Minister of Employment and Labor Lee Jae-gap, Minister of SMEs and Startups Park Young-sun, along with government officials including Chief Secretary for Policy Coordination Noh Hyung-wook, Vice Chairman of the Presidential Committee on Jobs Kim Yong-gi, and Bank of Korea Governor Lee Ju-yeol.