[Economic Outlook] Third Round of Support Payments Begins... Announcement of Tax Law Enforcement Decree Amendment

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is announcing customized damage support measures in response to the third wave of COVID-19, including emergency disaster relief funds, at the briefing room of the Government Seoul Office in Jongno-gu, Seoul, on the 29th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Bo-kyung] The government will begin preparations next week to distribute support funds for damages caused by the third wave of the novel coronavirus infection (COVID-19). The World Bank (WB) will release its economic outlook for this year for the first time.

According to the economic ministries on the 3rd, the government will start the payment procedures for support funds related to the third wave of COVID-19 damages from the first week of the new year. Starting from the 11th, various support funds will be provided to vulnerable employment groups such as small business owners, special employment workers (teukgo), and freelancers.

In the early hours of the 6th, the World Bank will announce its first global economic outlook of the year.

Initially, forecasting agencies expected the global economy to achieve a strong rebound as it emerged from the COVID-19 situation this year, but the recent worldwide spread of variant viruses and strengthened lockdowns have created a worsening atmosphere.

Major advanced countries are striving to accelerate vaccination rates, but the rapid spread of COVID-19 is increasingly likely to delay the timing of economic recovery.

The International Monetary Fund (IMF) projected in October last year that the global economic growth rate for this year would be 5.2%.

The Ministry of Economy and Finance will announce the 2020 tax law follow-up enforcement decree amendment on the 6th. This enforcement decree is intended to specify detailed matters delegated by the revised tax law passed by the National Assembly in December last year.

For example, various benchmarks for the financial investment income tax system introduced from 2023 and detailed contents of the integrated investment tax credit implemented from this year will be disclosed through this enforcement decree.

The Bank of Korea will release the preliminary balance of payments data for November on the 8th. Previously, the current account surplus for October was $11.66 billion, exceeding $10 billion for two consecutive months.

The surplus trend continued for six consecutive months from May ($2.29 billion) through October. In particular, the surplus in October was the largest on a monthly basis since September 2017 ($12.34 billion) and ranks as the third largest ever since January 1980.

The Bank of Korea expects that the annual current account surplus forecast of $65 billion for last year will be comfortably exceeded. A Bank of Korea official said, "If the current account surplus size of October is maintained through November, last year's target can be achieved."