Presiding Over Economic Ministers' Meeting at Seoul Government Complex
"Domestic and International Uncertainties Greater Than Ever"
1.8% Growth Rate... Full Effort to Restore Livelihood Economy
Choi Sang-mok, Acting President and Deputy Prime Minister as well as Minister of Strategy and Finance, announced that amid growing concerns due to increased domestic and international uncertainties, a 18 trillion won economic reinforcement package will be implemented to restore the livelihood economy. He also indicated that in the first quarter, the government will review the new U.S. administration’s policy developments and the livelihood economic situation, and consider additional economic reinforcement measures if necessary.
Acting President Choi made these remarks while presiding over the Economic Ministers’ Meeting at the Government Seoul Office. The meeting was attended by 19 government officials, including Acting President Choi, Lee Ju-ho, Deputy Prime Minister for Social Affairs and Minister of Education, Yoo Sang-im, Minister of Science and ICT, Cho Tae-yeol, Minister of Foreign Affairs, Song Mi-ryeong, Minister of Agriculture, Food and Rural Affairs, Ahn Deok-geun, Minister of Trade, Industry and Energy, and Kim Moon-soo, Minister of Employment and Labor.
In his opening remarks, Acting President Choi said, "“This year, our economy will face unprecedented domestic and international uncertainties as the new U.S. administration takes office and domestic political situations intertwine. The growth rate is expected to drop to around 1.8%, exacerbating livelihood difficulties and raising concerns about external creditworthiness.” He added, “The government has prepared this year’s economic policy direction with the goal of managing the economy as stably as possible.”
Acting President Choi explained, “Above all, we will devote all efforts to restoring the livelihood economy. We will mobilize all public resources to implement an 18 trillion won economic reinforcement package and promote an unprecedentedly large and rapid ‘Livelihood Quick Support’ project.” He continued, “Benefits such as senior citizen jobs and youth employment incentives will be made tangible to every citizen from the very beginning of the new year.”
He also stated, "We will actively support the recovery of domestic demand, including consumption, construction, and regional economies,” adding, “In particular, we will do our best to restore consumer sentiment through expanded income deductions for additional consumption in the first half of the year and reductions in automobile acquisition tax.” Furthermore, he emphasized, "We will strengthen tailored support for vulnerable groups,” and “especially by expanding the support targets for the New Start Fund and enhancing tax support for the Yellow Umbrella Mutual Aid, we will reduce the burden on small business owners and broaden their sales base.”
He also pledged, “We will manage external creditworthiness as stably as possible,” and announced, “We will proceed smoothly with inclusion in the World Government Bond Index (WGBI) and the value-up program, and provide exceptional cash subsidies and tax benefits for foreign investment.” He added, “If volatility in the financial and foreign exchange markets increases, we will stabilize the market through bold and swift measures.”
Acting President Choi mentioned, “In response to uncertainties in the trade environment such as the new U.S. administration, we will establish a systematic response strategy and also seek fundamental measures to strengthen industrial competitiveness.” He emphasized, “We will focus on innovation in key industries and the discovery of promising new industries, and significantly improve investment conditions for small and medium enterprises through temporary investment tax credits and accelerated depreciation benefits.”
Finally, he stated, “Considering the significant domestic and international uncertainties, we will reassess overall economic conditions, including the policy developments of the new U.S. administration and the livelihood economic situation, during the first quarter,” and “If necessary, we will consider additional economic reinforcement measures.”
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