4th Ministerial Meeting on Boosting the Economy in 2020
5th Ministerial Meeting on the Economy in 2020
Government Says Too Much Fear Can Hurt the Economy
Deputy Prime Minister Hong Nam-ki presided over the 5th Ministerial Meeting on the Economy held on February 12, that is, the 4th Ministerial Meeting on Boosting the Economy. With regard to the outbreak of novel coronavirus, Deputy Prime Minister Hong asked the Korean people not to be too cautious and go on with everyday activities as the government has been working on the full control of the disease, including infection prevention.
The 2020 plans to promote investment were main topics of discussion, as well as financial support for small businesses affected by the disease outbreak. DPM Hong talked about the January employment statistics, released just before the meeting, at the beginning of his keynote address.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
January job data
Employment has been improving steadily: Jobs increased 568,000 in January from a year ago, the employment rate for those aged 15-64 rose 0.8 percentage points to 66.7 percent, and the unemployment rate fell 0.4 percentage points to 4.1 percent. Employment rates improved in all age groups except the group of those in their 40s.
Manufacturing jobs rose 0.8 percent, going up for the first time in 22 months, backed by strong shipbuilding and with industrial innovation efforts beginning to take shape. A total of 389,000 jobs were created outside the social welfare and public administration sectors, a sign that the private sector is rebounding.
Permanent jobs increased 664,000, taking up 71.6 percent of the nonfarm payroll employment, and young adult employment continued to improve, their unemployment rate falling to the lowest since 2013. The government will work to address the low employment rate among those in their 40s and to help businesses affected by the outbreak of the coronavirus for jobs there not to be lost.
Large manufactures to provide financial support to their parts suppliers affected
I thank the Hyundai Motor Group and Samsung for the decision to provide their suppliers affected by the coronavirus outbreak with financial support worth 1 trillion won and 2.6 trillion won, respectively.
2020 plans to promote investment
We will work to make sure the investment in the 100 trillion won worth of projects unveiled in the 2020 economic policies.
- Private sector investment: Out of the 25 trillion won worth of corporate projects planned to be invested this year, projects worth 10 trillion won have been proceeded as scheduled. New projects worth 5 trillion won will be worked on to be finalized by March
- Private investment in SOC projects: Out of the 15 trillion won worth of SOC projects planned to be financed by the private sector, 62 projects worth 5.2 trillion won have been going on as scheduled to be completed this year. Planning on the large-scale SOC projects worth more than 10 trillion won, including road construction, will be finalized soon.
- Public sector investment: Action plans have been finalized for almost all of the 60 trillion won worth of public sector projects. The government will work for the investment to be made as scheduled.
We will also work on providing financial and tax supports as planned.
Financial support for businesses affected
The government will provide financial support to businesses affected by the coronavirus outbreak.
- Provide business operation loans worth 25 billion won with a lower interest rate, guarantees worth 105.0 billion won with preferable conditions and loan extensions
- Expand the accounts receivable insurance to 2.2 trillion won and pay the insurance within 10 days from the accident
- Promote market diversification through KOTRA’s export assistance program called ‘export voucher’
- Provide 20 billion won worth of small merchant loans with a lower interest rate, guarantees worth 100 billion won with preferable conditions, and loan and guarantee extensions
- Work for local governments to be able to increase their support for small merchant guarantees
- Help small merchants affected recover from the damage, such as by assisting in launching an online business
Please refer to the attached pdf