2^nd Meeting of Central Economic Response Headquarters

16^th Ministerial Meeting on the Economy

 

Government to Work on Korean New Deal

 

 

Deputy Prime Minister Hong Nam-ki presided over the 2^nd Meeting of the Central Economic Response Headquarters, that is the 16^th Ministerial Meeting on the Economy, held on May 7.  Emergency unemployment support for those outside unemployment insurance was a main topic of discussion, as well as plans for Korean New Deal.  Deputy Prime Minister Hong talked about the easing of social distancing, which began on May 6, at the beginning of his keynote address. 

 

The following is a summary of DPM Hong’s keynote address.

 

Easing of social distancing

 

As there have been no confirmed cases of domestic COVID-19 infection over the last three days, the government has eased its ‘social distancing’ measures to ‘everyday life quarantine’ since May 6.  I thank frontline healthcare workers and the Korean people for the slowdown of the disease.  Every day activities has resumed, individuals required to maintain good personal hygiene. 

 

We believe it is a critical time to help boost the economy and restore confidence.  We will focus on promoting demand as we draw up second-half economic policies, 3^rd supplementary budget proposal, Korean New Deal and preparations for a post-COVID-19 economy.

 

Topics of discussion

 

Emergency unemployment support for those outside unemployment insurance (1.5 trillion won)

 

- Platform workers, freelancers, self-employed and furlough employees to receive the support if they earn 50 million won or less a year, or 100 percent or less of the AMI, and there is a 25 percent or more of income reduction (a 25 percent or more of revenue reduction to the total annual revenue amounting to 150 million won or less)[1]

- Monthly payment of 500,000 won given to around 930,000 workers for three months

- Source of finance:  940 billion won to be financed with government reserves and the rest to be financed with a 3^rd supplementary budget

 

Korean New Deal

 

- Focus on transformation into a digital economy, accelerated by the COVID-19 pandemic, along with job creation and innovation in a digital economy

- Work on a large-scale project to promote a digital economy, seeking synergy with private sector investment and an improvement in industrial productivity and overall competitiveness

- Work on 10 goals to speed up transformation into a digital economy, which include building big data systems, 5G networks, AI and other infrastructure for a digital economy, promoting remote businesses and improving the existing SOC with digital technology

 

Please refer to the attached pdf