President Moon Urges Swift Parliamentary Approval of Largest Ever 3rd Supplementary Budget (Comprehensive)

Presiding over the 6th Emergency Economic Meeting, Discussing the Economic Policy Direction for the Second Half of the Year... "Korean New Deal, Committed to the Nation's Future"

[Asia Economy Reporter Ryu Jeong-min] President Moon Jae-in stated at the 6th Emergency Economic Meeting held at the Blue House on the afternoon of the 1st, "We will prioritize overcoming the economic crisis and mobilize the government's fiscal capacity to the fullest," adding, "To continue bold fiscal spending in the second half of the year, the government has prepared the largest-ever third supplementary budget as a single supplementary budget."

In particular, President Moon emphasized, "I earnestly ask the National Assembly for prompt deliberation and approval of the supplementary budget bill scheduled to be submitted this week. Even with the addition of the third supplementary budget, please consider that the increase in our national debt ratio is much smaller than that of other major countries."

The purpose of President Moon personally presiding over the emergency economic meeting was to strengthen the economic policy direction for the second half of the year and the third supplementary budget bill. While evaluating that Korea has relatively managed well in responding to the novel coronavirus disease (COVID-19) crisis, President Moon expressed concern, stating, "Our economy is showing a deeper recession in the second quarter compared to the first quarter."

[Image source=Yonhap News]

The worsening employment situation, the expanding decline in exports, and the international conflicts arising from the major powers' nationalist attitudes are also concerning points.

In response, President Moon said, "The government plans to prepare the economic policy direction for the second half of the year one month earlier than usual to cope with the severe situation. In the second half, we must rapidly recover our economy and achieve a rebound in growth," adding, "We must build a leading economic foundation to get ahead in the post-COVID era."

This means that the direction of economic policy in the second half of the year is to expand the inclusive national foundation while preparing for changes in jobs in the digital economy era.

President Moon pledged, "We will focus on protecting self-employed individuals, small business owners, and companies in crisis, especially safeguarding people's jobs," and added, "We will significantly expand employment retention support, eliminate blind spots in employment insurance, provide emergency jobs, and strengthen employment safety nets and social safety nets."

He also revealed plans to mobilize all measures to accelerate economic recovery. President Moon said, "In a very difficult external trade environment, we will focus on revitalizing domestic demand to serve as the foundation for economic recovery," and added, "We will promote large-scale consumption stimulation and domestic tourism activation through active fiscal and tax support."

He also expressed the intention for the public sector to lead investment through active support for private investment and investments in living SOC (Social Overhead Capital). President Moon explained, "We will also establish a comprehensive support system to accelerate export recovery. We will expand an all-around online export support system and focus on supporting overseas sales channels for popular Brand K products such as K-quarantine, K-pop, K-beauty, and K-food."

[Image source=Yonhap News]

Meanwhile, at the emergency economic meeting, President Moon clearly stated the meaning and direction of the Korean New Deal. He defined, "The Korean New Deal is a new national development strategy to leap from a follower country to a leading country."

President Moon said, "Based on the value of people first and the foundation of an inclusive nation, the Korean New Deal, which stands side by side on two pillars?Digital New Deal and Green New Deal?will be vigorously pursued with the nation's future at stake," adding, "We will transform our economy from a follower-type to a leading-type economy and open new opportunities through large-scale job creation."

President Moon explained, "The Digital New Deal aims to lead the future-oriented innovative economy. By fostering the DNA ecosystem and non-face-to-face industries, and massively digitalizing national infrastructure, we will accelerate the transition to a digital economy." He pledged, "Through the Green New Deal, we will open the path to sustainable growth," and added, "As a responsible member of the international community, we will actively respond to climate change while creating new markets, industries, and jobs."

In particular, President Moon said, "Fundamentally, both the Digital New Deal and the Green New Deal are for people," and added, "We will greatly expand employment safety nets, such as laying the foundation for universal employment insurance, and increase investment in people for an inclusive digital economy through workforce development, education, training, and employment support for new jobs."

[Image source=Yonhap News]

President Moon's position is that the Korean New Deal projects included in this supplementary budget are just the beginning. He said, "When we present the comprehensive plan in July, we will report to the public a long-term and comprehensive big picture along with specific plans to be achieved by the end of our government term."

In addition, President Moon said, "To move toward a leading economy in the post-COVID era, we will also vigorously pursue the existing innovation growth strategy," adding, "We will nurture the K-quarantine industry as an export engine and foster three new industries?bio, system semiconductors, and future cars?as the future food sources of our economy. We will actively support the return of our companies and the attraction of overseas advanced industries."

President Moon pledged, "To build the foundation of a leading economy, bold innovation in industrial and economic structures is necessary," and added, "We will establish an ecosystem where ventures and startups become the main players in the digital economy, enhance the competitiveness of key industries through manufacturing innovation and smartization, and accelerate innovation in the service industry along with tangible regulatory reforms."