5th Meeting of Central Economic Response Headquarters
19th Ministerial Meeting on the Economy
Government Plans Nationwide Sales Event in First Half
Deputy Prime Minister Hong Nam-ki presided over the 5th Meeting of the Central Economic Response Headquarters, that is the 19th Ministerial Meeting on the Economy, held on May 28. Economic policies for the second half were main topics of discussion, as well as plans to hold a nationwide sales event in the first half and extra support for industries hit hardest by the pandemic.
DPM Hong talked about recent confidence data at the beginning of the meeting.
The following is a summary of DPM Hong’s keynote address.
Confidence data improving in May
- Consumer confidence rose after falling for four months in a row
- Non-manufacturing BSI improved, manufacturing BSI not picking up
- Economic sentiment rose slightly
I hope the improvement, weak though, will lead to economic recovery.
Second-half economic policies and 3rd supplementary budget proposal
The government will soon announce the second-half economic policies and 3rd supplementary budget proposal. The second-half policies will contain the following measures.
- Measures to boost domestic demand, including investment promoting measures
- Korea New Deal and other plans to prepare for a post COVID-19 economy
- Plans to boost exports, including support for the country’s infection control tools, the K infection control, to go overseas
With regard to exports, we will announce in July measures to help exports recover, which will include support to boost overseas orders and plans to promote reshoring
Topics of discussion
1) Organize a nationwide sales event to start in the first half
- A nationwide sales event, as big as the Korea Sale Festa held in autumn, to be held from June 26 to July 12
- Discount events to take place in turn across the country, starting from downtown, Seoul
- Government to work on the most strict disease prevention
- Promote dining out, as well as the event to be included in tourist programs
2) Provide extra support for industries hit hardest by the pandemic
The industries to receive extra supports are auto part suppliers, medium-sized shipbuilders, textile makers, exhibition businesses and sports service providers.
- Auto parts suppliers: 500 billion won worth of guarantees to be made available, which will be raised by car manufacturers, the government and local governments
- Medium-sized shipbuilders: Government to order this year around 30 eco-friendly vessels to replace old public sector vessels and coast guard combat ship
- Textile and clothing makers: Spend 90 percent of the public sector apparel procurement budget in the first half, such as budgets for police uniforms and firefighter uniforms, loans and guarantees taken out from government agencies, such as Korea SMEs and Startups Agency and Korea Technology Finance Corporation, to be expanded, and new guarantees to be provided through a special venture and startup guarantee program
- Exhibition businesses: Give 600,000 won per booth for the exhibition suspended due to social distancing, and promote the use of local exhibition facilities for the nationwide sales event scheduled to start on June 26
- Sports service providers: Provide extra loans worth 20 billion won, give a 30,000 won fitness center membership fee support to 400,000 individuals, provide infection control support when international competition events are held, and help create remote coaching markets
Please refer to the attached pdf
