"Reflecting Government Commitment to Economic Stability and Future Investment
Appropriate Measures for Managing External Credibility"
Economic organizations expressed expectations that the '2025 Economic Policy Direction' announced by the government on the 2nd would help stabilize the livelihood economy and boost economic vitality during a time of increasing domestic and international uncertainties.
Kim Jae-hoon, Director General of the Economic Policy Bureau at the Ministry of Economy and Finance (third from the left), is explaining the main points of the 2025 Economic Policy Direction at the Government Complex Sejong on the morning of the 27th. Photo by Yonhap News
The Korea Chamber of Commerce and Industry, in a comment issued under the name of Kang Seok-gu, Head of the Research Headquarters, emphasized, "In a situation where the economic cycle is declining, the timely and sufficient role of fiscal policy to support vulnerable groups and stabilize livelihoods is important," adding, "It is an appropriate measure to identify not only institutional innovation but also strengthening communication with the international community as urgent issues for managing external credibility."
Furthermore, it stated, "The determination not to neglect proactive investment for the future despite difficulties through the Dynamic Economy Roadmap is a noteworthy point," and added, "We must continue to establish a foundation for nurturing new industries such as artificial intelligence (AI), bio, and quantum, as well as strengthening the competitiveness of core industries."
The Korea Economic Organization Federation, in a commentary by Lee Sang-ho, Head of the Economic and Industrial Headquarters, said, "The 2025 Economic Policy Direction reflects the government's will to maintain economic stability and strengthen external trust amid increasing management uncertainties such as strengthened protectionism and political turmoil."
The federation added, "Measures to stabilize the financial and foreign exchange markets, advance the capital market, and promote foreign investment are expected to help maintain our economy's external credibility," and said, "We hope that the enactment of the Semiconductor Special Act, infrastructure support, and the rapid establishment of a trade response system for core industries such as automobiles, secondary batteries, and shipbuilding will enable companies to carry out exports and investments without disruption."
The Korea Employers Federation (KEF) stated, "It is evaluated that this will help stabilize the livelihood economy, which has been struggling due to recent sluggish domestic demand and political instability, and enhance economic vitality."
It added, "In particular, measures such as raising the tax credit rate for semiconductor company facility investments and the temporary introduction of investment tax credits for small and medium-sized enterprises are expected to serve as a catalyst for expanding investment across industries."
The Korea International Trade Association, in a comment by Jeong Hee-cheol, Head of the Trade Promotion Headquarters, expressed expectations that "the expansion of policy finance supply for export and investment support, strengthened stable management of financial and foreign exchange markets, and proactive and systematic responses to changes in the external trade environment will have a positive impact on improving the export slowdown trend."
It also urged, "In a situation where global economic uncertainties are higher than ever, such as the inauguration of the new U.S. administration, we hope the government will thoroughly implement economic policies," and requested, "We ask the National Assembly to actively cooperate based on the principle and trust that there is no distinction between ruling and opposition parties when it comes to economic issues."
The Korea Federation of SMEs evaluated, "This year's economic policy direction concretized plans to supply facility investment funds of 55 trillion won, the largest ever," and said, "It is a desirable measure reflecting the government's accurate recognition of the indispensable role of companies as key players driving the overcoming of the economic crisis."
The federation added, "To enhance the effectiveness of the largest-ever trade finance of 360 trillion won and the export support budget of 2.9 trillion won allocated for strategic export support, flexible and prompt execution based on competitiveness and growth prospects should promote more companies' challenges and innovations."
Earlier that day, the government announced the blueprint for the new year's economic policy, '2025 Economic Policy Direction,' focusing on livelihood recovery and external credibility management. It set improving the unprecedented prolonged domestic demand slump and restoring foreign investment sentiment, which had shrunk since the emergency martial law situation, as the top priorities for this year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
