2020 Work Report: Promote Investment
and Support Industrial Innovation
2020 Work Report: Promote investment and support industrial innovation, as well as pursue inclusiveness and work to improve public sector efficiency
The Ministry of Economy and Finance will help boost the economy over 2020 as it promotes investment and industrial innovation. We will continue to seek inclusiveness and work on public sector efficiency.
1. Promote investment to help boost the economy
- Support domestic demand: Work for a total of 100 trillion won worth of projects[1] to start in 2020 and increase tax support[2] to promote consumption
- Promote exports: Announce measures to expand service exports in March and measures to help win overseas infrastructure projects in the first half
- Work to fully control COVID-19 epidemics and strengthen the management of other risks
2. Support industrial innovation
- Work to develop post-semiconductor growth engines, such as data technologies and bio technologies: Announce plans to promote a data economy in March and action plans to develop bio technologies in the first half
- Improve regulations: Work with a taskforce on obsolete regulations to promote the 10 sectors[3], work on the First Step, a model to address conflicts between interest groups when new services are introduced, in which interest groups work together towards a win-win outcome
- Improve the budget, tax and financial systems in a way to promote innovation, and support the development of core technologies
3. Seek inclusiveness
- Work on job creation: Announce job creation measures for those in their 40s in the first quarter and provide fiscal support to help create jobs
- Strengthen social safety nets: Increase basic pension benefits from 250,000 won per month to 300,000 won and add 95,000 social service jobs
- Prepare for demographic challenges: Run taskforces to address low birth and ageing population, rising single-person households and shrinking labor force, and draw up mid- to long-term plans to increase productivity and improve the quality of living
4. Improve public-sector efficiency
- Work to increase government spending efficiency: Work on better budget allocation and spending, close cooperation within the government and fiscal soundness
- Prepare for the global introduction of digital taxes and announce in July plans to impose taxes on income coming from virtual currency transactions
- Support the administration’s innovation-driven growth: Spend about one percent of public sector procurement, about 410 billion won, on innovative products, and draw up by April a SME labor force support program, the SME Sherpa, through which experienced employees with peak wage programs in their companies can be sent to other companies, such as SMEs and startups, and provide their expertise
Please refer to the attached pdf
