Government's Economic Policy Direction for the Second Half of 2020
Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (center), is holding a joint briefing with related ministries on the 'Second Half of 2020 Economic Policy Direction' at the Government Seoul Office Building on the afternoon of the 1st. [Image source=Yonhap News]
[Asia Economy Reporter Joo Sang-don] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced on the 1st that "a total of 76 trillion won will be invested in the core projects of the Korean New Deal by 2025."
Deputy Prime Minister Hong held a briefing on the "2020 Second Half Economic Policy Direction (Ha-gyeongjeong)" at the Government Seoul Office in the afternoon and stated in his opening remarks, "The Korean New Deal is not only a measure to overcome the short-term crisis and create jobs but also has a future-oriented nature to prepare for the post-COVID-19 era in the medium term."
He explained, "The Korean New Deal aims to transform our economy from a follower-type economy to a leading economy while opening new opportunities through large-scale job creation," adding, "It is a structure where two New Deal axes, namely the Digital New Deal and the Green New Deal, are actively promoted on the foundation of people-first values and a solid employment safety net."
Regarding the Digital New Deal, he said, "In response to the major transformation of the economic and social structure due to COVID-19, such as non-face-to-face and digital economy acceleration, we will invest 13.4 trillion won by 2022 to create 330,000 jobs," emphasizing, "This will be key to promoting the transition to a digital economy and strengthening the competitiveness of new and existing industries." The Green New Deal plans to invest a total of 12.9 trillion won by 2022, focusing on three major areas and eight projects: green transformation of urban, spatial, and living infrastructure; establishment of an innovative green industry ecosystem; and expansion of low-carbon and distributed energy, aiming to create 133,000 jobs.
Deputy Prime Minister Hong stated, "Without building a solid and dense employment safety net for the structural changes in the future employment market, the Digital New Deal and Green New Deal could become a house of cards," adding, "We will invest a total of 5 trillion won by 2022 in five projects, including establishing a nationwide employment safety net, providing living and employment stability support for blind spots in employment insurance, reforming the vocational training system for future adaptation, innovating industrial safety and working environments, and supporting new entry and transition in the labor market, to create 92,000 jobs."
On the same day, the government forecasted that the Korean economy would grow by 0.1% this year. Deputy Prime Minister Hong said, "The government does not exclude the possibility of negative growth this year considering recent domestic and international conditions," but emphasized, "In this Ha-gyeongjeong, we intend to present a growth target of +0.1%, reflecting the effects of supplementary budgets and the government's strong policy will."
Deputy Prime Minister Hong urged the National Assembly to promptly pass the third supplementary budget bill. He said, "The government and economic team will do their best and devote all efforts to achieve a fast and strong economic recovery and establish an economic foundation to lead the post-COVID-19 era," adding, "The first step is the third supplementary budget bill to be submitted to the National Assembly this Thursday. I take this opportunity to request the newly inaugurated 21st National Assembly to promptly review and approve the supplementary budget bill."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
