24th Ministerial Meeting on Boosting the Economy
24th Ministerial Meeting on the Economy of 2019
Government Unveils Framework Measures to Deal with Demographic Changes
Deputy Prime Minister Hong Nam-ki presided over the 24th Ministerial Meeting on Boosting the Economy held on September 18, that is, the 24th Ministerial Meeting on the Economy of this year. Framework measures to deal with demographic changes were unveiled, ways to deal with potential labor shortages being the topic of discussion. Plans to support business restructuring in SMEs were another topic of discussion, and DPM Hong urged on Ministries and local governments fiscal spending as scheduled.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
Framework measures to deal with demographic changes
The government has worked on measures to deal with demographic changes since it formed a taskforce last April. We have focused on the four areas, and they are
- How to overcome labor shortages
- How to reduce the potential impact of declining population
- How to better prepare for ageing population
- How to deal with rising welfare spending
The framework measures propose using the elderly and foreign workers to fill the worker shortage, preparing for falling public service demand, such as declining demand for teachers, as well as shrinking armed forces, creating smart workplaces to help elderly workers, as well as improving retirement pension plans, and strengthening fiscal resources management to make sustainable the country’s elderly welfare system.
How to overcome labor shortages
- Encourage the elderly to continue to work: Increase the corporate support for hiring those over 60 and older from 270,000 won per employee for a quarter to 300,000 won, and adopt a corporate support for retaining employees after retirement
- Work on mid- to long-term measures to encourage the elderly to remain in the job market, taking into consideration the effect on young adult jobs and national pension plans
- Help businesses hire foreign workers, such as by shortening the time required to re-enter the country, introduce a new work visa for talented professionals and build an integrated immigration management system
Business restructuring support for SMEs
Since business restructuring is inevitable to survive the 4th industrial revolution, the government has decided to help SMEs going through it.
- Help with business restructuring, such as by easing regulations and expanding financial support if it is to change into ones in new industries
- Increase financial support for businesses temporarily suffering hardships
- Provide a support package of consulting services and financial help to those retrying after fail
Fiscal spending as scheduled
The central government, as well as local governments, will work hard to spend budgets as scheduled for the effect of the spending to spread as quickly as possible to all sectors of the economy.
- Work for the budgets not to be left unused or transferred to next year
- Urge local governments to try hard to spend budgets as scheduled
Please refer to the attached pdf
