[Asia Economy Reporter Lee Ji-eun] President Moon Jae-in emphasized that "we must continue to lead the global semiconductor supply chain" and pledged to provide multifaceted support. He also instructed relevant ministries to prepare tailored measures to support strategic industries such as semiconductors, electric vehicles, batteries, shipbuilding, and shipping, to ease excessive regulations, and to offer investment tax incentives.
On the 15th, President Moon presided over an expanded economic ministers' meeting at the Blue House, stating, "To overcome the waves of rapid change and seize opportunities, businesses and the government must unite as one."
In addition to Blue House and government officials, economic leaders such as Lee Jung-bae, President of Samsung Electronics; Lee Seok-hee, CEO of SK Hynix; Gong Young-woon, President of Hyundai Motor Company; Choi Woong-sun, CEO of Infac; Ga Sam-hyun, CEO of Korea Shipbuilding & Offshore Engineering; Jung Jin-taek, President of Samsung Heavy Industries; Bae Jae-hoon, CEO of HMM; and Hwang Ho-sun, President of Korea Ocean Business Corporation, attended the meeting.
President Moon said, "Competition among countries to capture the recovering global market from the COVID-19 shock is intensifying daily," adding, "There are movements to reorganize global supply chains centered on each country, as well as transitions to a digital low-carbon economy."
He continued, "The industry where the reorganization of global supply chains is most evident is semiconductors," and added, "Since the semiconductor industry is a core national strategic industry that determines the present and future of our economy, we must continue to lead the global semiconductor supply chain."
President Moon stated, "We will strongly support the leap to become a comprehensive semiconductor powerhouse by using the current global semiconductor supercycle as a new opportunity," and said, "We will establish multifaceted support plans to maintain our world No. 1 position and widen the gap."
Regarding the automobile industry, he emphasized, "In line with the era of eco-friendly vehicles, not only complete vehicles but also about 1,000 parts suppliers must have the highest competitiveness," and noted that with the expansion of the electric vehicle market, demand for secondary batteries is increasing, saying, "Batteries are like our second semiconductors."
President Moon said, "We will establish comprehensive support measures to secure leadership in the global battery market," and added, "Regarding the recent shortage of automotive semiconductors, the government is cooperating with companies to do its best to secure supply. We will increase localization rates through an alliance between the semiconductor and automobile industries."
Regarding the shipbuilding and shipping industries, he said, "We must use the increase in cargo volume due to the global economic recovery as a definite opportunity for a leap forward," and stated, "In addition to the 'Korean-style shipowner business,' which leases ships owned by the Korea Ocean Business Corporation at low charter rates, we will accelerate efforts to rebuild the shipping industry."
President Moon said, "Through cooperation between the government and industry, our manufacturing sector will open a new era of leap forward, leading inclusive recovery and pioneering economic transition," and urged, "Please work hard on tailored measures for each major industry while maintaining close communication with the industry, centered on relevant ministries."
He continued, "Please ease excessive regulations that hinder innovation and improve tax incentives for investment more effectively," and raised his voice, saying, "I will also continue to visit corporate investment sites."
Regarding the recent employment recovery, he evaluated it as "very hopeful." President Moon said, "Since the beginning of this year, recovery centered on orders and investment has been faster than initially expected, and the first quarter GDP is expected to have already recovered to or nearly to pre-COVID-19 crisis levels," adding, "The number of employed persons in March turned to an increase after 13 months, and especially the significant increase in youth employment numbers and employment rates is very hopeful."
He added, "We will not be satisfied with the indicators but will make faster and stronger efforts so that the public can quickly feel the economic recovery results," and said, "We will execute supplementary budget projects swiftly and carry out various consumption incentives and 110 trillion won projects to improve domestic demand without delay."
President Moon emphasized, "If necessary, we will take additional measures for (domestic demand activation) at any time," and said, "As soon as quarantine stabilizes, we will also prepare bold consumption activation plans."
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