10h Meeting of Central Economic Response Headquarters
28th Ministerial Meeting on the Economy
Government to Boost Domestic Consumption
Deputy Prime Minister Hong Nam-ki presided over the 10th Meeting of the Central Economic Response Headquarters, that is the 28th Ministerial Meeting on the Economy, held on July 10. Deputy Prime Minister Hong talked about government’s firm pledges to continue boosting domestic consumption amid weak global demand, and frameworks for housing markets stability.
The following is a summary of DPM Hong’s keynote address.
Continue to boost domestic consumption
The government has implemented measures in relays to boost consumption at home as exports struggle amid falling global demand.
- First runner: Emergency relief payments delivered to citizens’ credit card accounts (or debit card accounts) in the second quarter
- Second runner: The nationwide sales event scheduled to end this Sunday (July 12), which has seen so far a large increase in sales from the previous year
- Third runner: Spending through the 3r supplementary budget, including coupons to be used in hotels, restaurants, tour packages and five other areas in the consumer sector, as well as gift certificates used at local markets
The coupons are expected to stimulate 1 trillion won worth of consumption, and the gift certificates worth 4 trillion won will be issued additionally.
Frameworks for housing market stability
The government will work to stabilize housing markets according to the following frameworks.
- Reduce the burden on low-income households: Increase support for first-time home buyers, apply relaxed income requirements to non-speculative working class buyers, increase rent loans for young adults
- Increase housing supply for non-speculative buyers
- Make multiple home owners subject to higher property taxes, and multiple home owners in ‘speculation watch’ zones subject to higher capital gains taxes, as well as short-term home ownership
- Revise rules on rental property businesses
Topics of discussion
1) Plans to help stabilize housing markets
2) Plans for the Korean New Deal: Actions plans for the Korean New Deal will be announced on July 13 at a presidential meeting.
