'Speed Battle' Government to Inject 340 Trillion Won into Fiscal, Public, and Private Sectors in First Half of Year

Vice Minister Choi Sang-dae Urges "Prompt Execution" at Vice Ministers' Meeting on Fiscal Execution
Record-High Fiscal Execution Targets for First Half of the Year
Over 590,000 Direct Job Positions to Be Hired Early in January

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kim Hyewon] The government has decided to inject a total of 340 trillion won across fiscal, public investment, and private sectors in the first half of this year to proactively respond to downside risks in the economy. It plans to execute 303 trillion won in fiscal spending combining central, local, and local education finances, and encourage public institutions and private projects to spend 34.8 trillion won and 2.2 trillion won respectively.

Choi Sang-dae, the 2nd Vice Minister of the Ministry of Economy and Finance, held a 'Fiscal Execution Vice Ministers Meeting' at the Korea Chamber of Commerce and Industry on the 11th, stating, "As the global economic slowdown is expected to intensify, we are putting all efforts into rapid execution from the beginning of the year to mitigate economic volatility and support struggling livelihoods." Vice Minister Choi requested each ministry to execute fiscal spending as quickly and intensively as possible within the first quarter.

The government set the fastest execution targets for each fiscal category in the first half at an all-time high level. The total 303 trillion won includes 156 trillion won (execution rate 65%) in central government finances, 131 trillion won (60.5%) in local government finances, and 16 trillion won (65%) in local education finances.

Public institutions will focus on executing 34.8 trillion won, which is 55% of their investment plan of 63.3 trillion won, in the first half. Additionally, for 61 private projects totaling 4.4 trillion won, including the metropolitan area express railroad (GTX) Line A (Samsung~Unjeong) and the Pocheon-Hwado highway, which are scheduled to start construction or are under construction this year, the government plans to induce execution of 51% within the first half.

Livelihood stabilization projects amount to about 11.2 trillion won annually, with approximately 4 trillion won, or 35.6% of the total, planned for execution in the first quarter. Among the Lunar New Year livelihood stabilization measures announced on the 4th, 7 billion won in holiday funds for small and medium enterprises and small business owners began accepting applications from the 2nd and will start disbursement from the 16th. The timing for increasing the winter energy voucher support amount for 1.176 million vulnerable households will be advanced as much as possible to apply from the 18th.

Considering the difficult employment conditions, more than 70% of the 14.9 trillion won budget for job projects will be executed in the first half. In particular, emphasis will be placed on the solid operation of youth job experience support and the Youth Startup Academy, as well as early recruitment for direct job projects for more than 590,000 people in January.

Vice Minister Choi emphasized, "Rapid execution requires collaboration as one team not only among fiscal authorities and project ministries but also frontline execution agencies such as local governments."