6th Meeting at Cheongwadae on the 1st of Next Month
[Asia Economy Reporters Son Seon-hee and Jang Se-hee] President Moon Jae-in will preside over the 6th Emergency Economic Meeting at the Blue House on the 1st of next month. It will be about a month since the 5th meeting held on the 22nd of last month.
According to the Blue House on the 29th, President Moon plans to discuss major agenda items at the 6th Emergency Economic Meeting next month, including the economic policy direction for the second half of this year and the formulation of the 3rd supplementary budget (supplementary budget). This is to demonstrate the will to inject economic vitality as various indicators such as investment, domestic demand, and employment hit bottom due to the novel coronavirus disease (COVID-19).
President Moon is expected to order practical measures that can complement the economic flow and expand job capacity through macroeconomic policies, including fiscal policy.
A government official said, "Looking at the trends of major indicators, it shows signs of entering the bottom zone of the economy," adding, "The Blue House is likely to judge that it is the right time to revive the sluggish economy and inject vitality into the economy."
The 3rd supplementary budget is expected to be submitted to the National Assembly as quickly as possible after the temporary Cabinet meeting scheduled next week, presided over by Prime Minister Chung Sye-kyun, based on the discussions at this Emergency Economic Meeting.
Discussions on building an employment safety net, which President Moon recently emphasized, are also expected. President Moon has previously stressed the need to implement nationwide employment insurance and the National Employment Support System.
Also, since the ruling party, government, and Blue House have reached a consensus on "expansionary fiscal policy" in this "economic wartime situation," it is anticipated that President Moon will hold the meeting personally and issue specific instructions related to fiscal matters.
On the 25th, at the "2020 National Fiscal Strategy Meeting," President Moon emphasized, "Fiscal management strategies must change significantly according to the economic situation," and stated, "We must mobilize the government's fiscal capacity with the determination to prepare a 'wartime fiscal budget.'"
Meanwhile, as President Moon personally oversees the economic policy direction for the second half of the year and the 3rd supplementary budget, various measures to boost corporate investment and consumption to strengthen economic quarantine are expected to be announced. A government official said, "We also need to consider risks such as concerns about the resurgence of COVID-19 and the US-China conflict," adding, "If COVID-19 prolongs, additional measures to stimulate the economy will need to be announced."
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