[President Yoon's National Tasks] Leading Nuclear Power, COVID Recovery, Industrial Competitiveness... Yoon: "A Country Where We Prosper Together"

Official Abandonment of the 탈원전 Policy
Emergency Support Plan for Small Business Owners Launched
Proactive Response to Global Supply Chain Crisis

Yoon Suk-yeol, the president-elect of the 20th Republic of Korea, is speaking at the plenary meeting held on the morning of the 3rd at the Presidential Transition Committee in Samcheong-dong, Jongno-gu, Seoul. Photo by Transition Committee Press Corps

[Asia Economy reporters Mun Jiwon and Geum Boryeong] The Presidential Transition Committee (PTC) has officially abandoned the nuclear phase-out policy pursued by the Moon Jae-in administration and set a goal to leap forward as a nuclear power leader. It also plans to significantly reform regulations across industries and strengthen financial and tax support to aid innovative growth. Energy security, supply chain reinforcement, and securing a semiconductor super-gap, which were pledges made by President-elect Yoon Seok-yeol during his candidacy, have also been included in the national agenda.

According to the economic national agenda announced by the PTC on the 3rd, the committee aims to reorganize the economic system centered on the 'private sector' to maximize the creativity and freedom of companies and citizens. The PTC emphasized, "We will shift the economic focus to companies and citizens, aiming for an economic system where growth and welfare circulate fairly in a virtuous cycle amid private sector creativity, dynamism, and vitality."

Abandoning Nuclear Phase-Out... Regulatory Innovation

First, the PTC decided to promptly resume construction of Shin Hanul Units 3 and 4 and increase the share of nuclear power by continuing to utilize nuclear plants whose operating licenses have expired. The deadline for applying for continued operation will be changed from 2-5 years before the expiration of the plant’s lifespan to 5-10 years prior, minimizing downtime institutionally. Additionally, the PTC set a goal to export 10 nuclear reactors by 2030, strengthening the export industrialization of nuclear power.

Furthermore, the PTC will form a joint 'Regulatory Innovation Promotion Team (tentative name)' consisting of private, public, and research sectors to identify and improve bundled regulations intensively. The intention is to significantly ease regulations that have suppressed private industries and create a free and efficient market economy. To swiftly resolve social conflicts that may arise during this process, the PTC will also establish a 'Regulatory Innovation Strategy Meeting' chaired by the president.

On the morning of the 3rd, Yoon Seok-yeol, the president-elect of the 20th presidential election, received the national agenda prepared by the transition committee from Ahn Cheol-soo, the chairman of the transition committee, at the plenary meeting held at the Presidential Transition Committee in Samcheong-dong, Jongno-gu, Seoul. Photo by Transition Committee Press Corps

Support for COVID-19 Damage Recovery... Accelerating Fiscal Normalization

Regarding COVID-19 loss compensation, which is President-elect Yoon Seok-yeol’s first pledge, the PTC announced plans to implement an 'Emergency Rescue Plan' for small business owners and others. Based on loss data, full compensation will be pursued, while debt restructuring, financial support, and digital transformation assistance will help small businesses recover sales. The next government will also push for an additional supplementary budget of 33 trillion won immediately after inauguration. Meanwhile, to dispel concerns about fiscal soundness due to successive supplementary budgets, the PTC will swiftly institutionalize binding fiscal rules during budget formulation. It plans to conduct strong expenditure restructuring by reorganizing low-performance and habitual subsidy projects and normalizing temporary COVID-19 programs. Additionally, considering the recent unstable domestic and international economic situation, the PTC will strengthen coordination of fiscal, financial, and foreign exchange policies and focus on stabilizing prices for ordinary citizens.

Focus on Strengthening Industrial Competitiveness

To proactively respond to the global supply chain crisis through industrial-trade linked cooperation, the PTC will establish an ‘Industrial Supply Chain Crisis Alert System and Comprehensive Support Framework.’ This is in consideration of the difficulties companies face due to supply chain disruptions caused by prolonged COVID-19 and the Russia-Ukraine conflict. As a key strategy to lead the new trade order in the Indo-Pacific region, the PTC will positively consider participation in the Indo-Pacific Economic Framework (IPEF) and pursue accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Efforts will also be made to establish energy security against global resource supply uncertainties. The scope of resource security will be expanded to include hydrogen and critical minerals, and supply stability will be enhanced through stockpiling expansion, diversification of import countries, and resource recycling. Increasing the independence and expertise of power market, pricing, and regulatory governance to create a power market based on market principles is also a goal. This is expected to foster a transparent and rational power market and pricing system.

To support industrial competitiveness, the plan includes innovating core industries such as manufacturing and establishing a foundation for job creation. Special focus will be placed on integrating digital technologies. The construction of an industrial data platform and the expansion of digital alliances by industry are expected to create new business models and increase industrial added value. Measures such as providing bold incentives for semiconductor facility investments and expediting permits will also be implemented to build a growth foundation for national advanced strategic industries like semiconductors and batteries, aiming to secure a future strategic industry super-gap.

'Sustainability' through Pension Reform

The government will promote a pension reform based on social dialogue for coexistence to ensure the sustainability of the National Pension Service and a stable old-age income security system. Detailed plans include conducting the 5th National Pension Financial Calculation based on the National Pension Act and preparing reform proposals based on long-term fiscal projections. The 'Public Pension Reform Committee' will provide a foundation for social consensus. The new government predicts that a stable system operation will be possible through an appropriate burden-appropriate benefit framework for the National Pension. Alongside this, the current basic pension of 300,000 won will be gradually increased to 400,000 won to alleviate elderly poverty.