7th Ministerial Meeting on Boosting the Economy
5th Ministerial Meeting on the Economy of 2019
Government to Help Exports Pick up
Deputy Prime Minister, Hong Nam-ki, presided over the 7th Ministerial Meeting on Boosting the Economy held on January 30, that is, the 5th Ministerial Meeting on the Economy of this year. The meeting discussed the current economic situation, including export situation, and talked about the framework of the ICT industry development measures on which the Ministry of Economy and Finance has been working.
The following is a summary of DPM Hong’s keynote address.
Current economic situation and plans to boost exports
Consumption grew 2.8 percent in 2018, hitting the seven year high and exceeding the 2.7 percent of the year’s GDP growth. As consumer confidence has also been rising for two months, it is important for the government to maintain this momentum and work for the spreading of its effect on the economy. However, business sentiment has yet to pick up as the BSI in manufacturing continued to fall in January, and exports are projected to decline for the second consecutive month in January due to weak semiconductors and sluggish Chinese markets.
As uncertainties are increasing amid slowing global economies and ongoing US-China trade conflicts, the government will announce framework measures to boost exports in February, followed by measures in detail by industry, such as those to promote overseas construction, contents exports and fresh food exports.
Framework for ICT industry development measures
The government will work on plans to develop the ICT industry, aiming by 2022 to increase jobs created in the industry by more than 10 percent, exports by more than 20 percent and small but strong enterprises by more than 30 percent. The measures will include 700 billion won worth of ICT R&D voucher programs to be provided for 2020-2024 and the launch of 1.2 trillion won worth of ICT venture investment funds. The measures will also cover plans to create an ecosystem for the ICT industry to develop further, such as plans to promote SW and HW industries, improve regulations and help create new markets, and effectively implement regulatory sandboxes.
- SW industries: Select 200 promising enterprises (50 fast growing ones, and 150 with high growth potential) and provide support designed differently to their needs
- HW industries: Promote technologies for future ICT devices, such as advanced semiconductors and next generation displays
- Improve regulations and help create new markets: Promote the launch of new services equipped with 5G mobile technologies, and work to create demand in the public sector
- Use regulatory sandboxes to promote industrial convergence between ICT and other industries
Please refer to the attached pdf
