Ministry of Economy and Finance

On October 16, Deputy Prime Minister Choi Sang-mok convened the Ministerial Meeting on Economic Affairs at the Government Complex-Seoul to discuss the following agenda items: ① The current status of employment for September 2024, ② Progress of the “Semiconductor Ecosystem Support Package” and future plans, ③ The 4th Framework for Radio Wave Promotion, and ④ Measures to strengthen the protection and relief for startup innovative technologies.     The following are key messages of DPM Choi’s remarks.   Although domestic constraints such as inflation and financial burdens are gradually easing, the overall sentiment in the economy remains challenging. Under these circumstances, the government will accelerate the implementation of the domestic recovery measures in areas such as corporate investment, construction investment, and private consumption, which were devised earlier this month. In particular, visits will be made to the frontlines of the economy to listen to voices on the ground, and based on such opinions, policy tasks aimed at improving domestic demand and people’s livelihoods will continue to be refined. Following a recent meeting with the heads of the six major economic organizations (September 9), ministers and vice ministers of relevant ministries are set to pay a visit to the corporate investment site.   [The current status of employment for September 2024]   According to the current status of employment for September, announced today, key employment indicators, such as the employment rate and labor force participation rate, continued to perform well, reaching record highs. However, as the rapid employment growth experienced after COVID-19 has started to slow, the number of workers in the construction industry has declined, and vulnerable groups, including the youth, continue to face challenges.   Going forward, the government will closely monitor the employment situation in various sectors and execute proactive measures to address difficulties in the most affected areas:    - Attract new talent by improving the treatment of skilled workers in the construction industry, where employment is declining, and expand employment education programs for young people.  - Make an effort to finalize a plan for cooperative measures in the delivery industry this month to reduce the management burden on small business owners and the self-employed.   - Establish the “Second Social Mobility Improvement Plan” next month, aimed at shoring up economic participation among vulnerable groups, such as youth, women, and middle-aged individuals. [Progress of the “Semiconductor Ecosystem Support Package” and future plans] [Measures to strengthen the protection and relief for startup innovative technologies]   Strengthened endeavors will be made to firmly support the semiconductor industry by providing 8.8 trillion won in funding through next year to achieve global leadership:   - With the low-interest loans for the semiconductor industry (since July 1) having provided 824.8 billion won in support so far, the government plans to lower interest rates further and supply a total of 4.3 trillion won. - Exempt the preliminary feasibility study for roads and water supply in the Yongin Semiconductor Industrial Complex and promote the sharing of 2.4 trillion won in costs by the government and public sectors.  - Promptly finalize specific power supply plans and reflect them in the Basic Plan for Power Supply by the end of this year. - Actively participate in parliamentary discussions for the enactment of the Special Act on Semiconductors and continue its efforts to enhance the competitiveness of the semiconductor ecosystem.   In addition, the government will commit to protect startups from unjust technology theft.    - Expand the scope of technology protection to include the negotiation stage before a transaction contract is signed, and significantly enhance sanctions against technology theft.   [The 4th Framework for Radio Wave Promotion]   The government will significantly increase the utilization of radio waves, whose importance is growing as key resource for digital innovation:    - Improve public convenience, such as enhancing the accuracy of weather forecasts, and foster future industries like autonomous vehicles, by strategically using radio wave resources. Please refer to the attached files. 

Statistics Korea released report on the 'Economically active population survey' on October 16, 2024. The economically active population marked 29.464 million persons in September, which grew 105 thousand persons or 0.4% year-on-year. Please refer to the attached PDF.

On October 10, during the ASEAN Summit in Vientiane, Laos, Korea and Laos signed[1] a Framework Arrangement (F/A)[2] for the Economic Development Cooperation Fund (EDCF)[3] in the presence of the leaders of both countries.   The EDCF provides concessional loans to developing nations under long-term, low-interest terms to support their economic and industrial development.   With the signing of the F/A, the EDCF loan support for the government of Laos will amount to $500 million from 2024 to 2027, maintaining the same funding level as the previous agreement from 2020 to 2023.   Laos, this year’s ASEAN Summit chair and one of Korea’s key Official Development Assistance (ODA) partners, has a strong demand for development and is a country of significant interest for Korean businesses.   This renewed agreement is expected to enhance partnership in high-value infrastructure projects, such as water resources and transportation, and further accelerate bilateral infrastructure collaboration, especially following the ASEAN Summit.   The signing of the EDCF F/A is set to include the approval of second phase of the “Comprehensive Management of the Mekong Riverbanks in Champasak Province” in October. This project is anticipated to make a significant contribution to improving the quality of life for local residents and promoting regional economic development by addressing Laos’ chronic flood and erosion issues along the Mekong River.   The Ministry of Economy and Finance has committed to fully supporting Laos’ goal of graduating from the Least Developed Country (LDC) status by 2026. In addition, the ministry will work towards expanding the participation of Korean companies in development projects in Laos, facilitating their entry into global markets. [1] Signatories: Cho Tae-yul, Minister of Foreign Affairs of Korea, and Santiphab Phomevihane, Minister of Finance of Laos. [2] Framework Arrangement: An intergovernmental agreement that pre-sets the loan period and the funding ceiling, serving as a comprehensive replacement for individual agreements within the specified period and limits. [3] The EDCF is a fund provided by the Korean government to developing countries on long-term, low-interest terms to support their economic and industrial development (concessional loans). Please refer to the attached files.