28th Ministerial Meeting on Boosting the Economy
1st Ministerial Meeting on the Economy of 2020
Government to Work to Successfully Carry out 2020 Policies
Deputy Prime Minister Hong Nam-ki presided over the 28th Ministerial Meeting on Boosting the Economy held on January 8, that is, the 1st Ministerial Meeting on the Economy of 2020. Ways to successfully carry out the 2020 economic policies were main topics of discussion, as well as how the government will respond to the US-Iran conflicts. DPM Hong talked about the goals of 2020 economic policies at the beginning of the meeting.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
Goals of 2020 policies
We have to take advantage of the opportunities the year 2020 would bring, as well as evade potential risks. Global economies and trade are expected to recover, but the US-China trade tensions remain unresolved, there are concerns over Brexit and the recent conflicts in the Middle East have added uncertainties. The government will work hard not to miss opportunities and keep the economy from potential risks.
It is most important for the economy to gain momentum this year and the government will help the economy develop growth potential by successfully implementing the 2020 policies. The government will continue to pursue the economy being inclusive and dynamic. The 2020 policy goals we will work to achieve are as follows.
1) Promote investment and consumption: Work for 100 trillion won worth of investment to be made across the private sector and the public sector, help attract more than 20 million foreign visitors, and promote ventures
2) Work on post-semiconductor growth engines: Expand investment in data, network and AI, promote a system-on-a-chip, biohealth and future cars, increase industrial productivity, and foster innovation in industries
3) Pursue structural innovation: Continue with the innovation of the labor market and the public sector, preparation for demographic changes and better social security
4) Work on deregulation: Select 10 most-regulated industries, then list up the regulations businesses feel most disturbing and carry out a zero-based review on those regulations, and develop a model to help reach a compromise between new businesses and conventional ones
How to respond to potential risks from the US-Iran conflicts
The government will be prepared for potential risks arising from the US-Iran conflicts, which involve financial markets and oil supplies, as well as trade, overseas construction and international shipping. We will run a 24-hour monitoring of the markets closely associated with the Korean economy, making our contingency plans ready.
Ways to carry out 2020 policies
1) Spend 62.0 percent of the 2020 budget in the first half, with 37.0 percent of the employment budget spent over the first quarter
2) Draw up action plans to carry out the 2020 policies as soon as possible
3) Announce measures in the first half to achieve the seven major policy goals: Improve the job market for those in their 40s, develop services, promote biohealth industries, carry out regulatory reforms in the 10 most regulated areas, support single-person households, prepare for demographic changes (2nd round measures) and encourage structural innovation in the five sectors, including the labor market
4) Revise rules and decrees if the passage of the bill, critical to boost the economy, is suspended in the legislative body: For example, the private data protection bill, hydrogen economy bill and new renewable energy bill
Please refer to the attached pdf