20th Meeting of Central Economic Response Headquarters
5th Ministerial Meeting on the Korean New Deal
Government to Promote ‘Untact’ Economy
Deputy Prime Minister Hong Nam-ki presided over the 20th Meeting of the Central Economic Response Headquarters, which is also the 5th Ministerial Meeting on the Korean New Deal, held on November 19. Plans to promote an ‘untact’ economy are main topics of discussion. Deputy Prime Minister Hong also discussed plans to allow no-destination international flights to help virus-hit international tourism and briefly talked about focuses for the 2021 economic policies. DPM Hong reiterated at the beginning of his keynote address the importance of successfully controlling the virus for the economy to continue to recover.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
Do utmost to control the virus
The government strengthened social distancing today to Level 1.5[1] as positive cases rose to over 300 recently. Although the stricter rules are limitedly enforced in the Seoul metropolitan area, we are concerned the recently building-up recovery momentum might slow. We will do our utmost to successfully control the disease until the new vaccine is available.
Promote an ‘untact’ economy
An ‘untact’ economy has played a large part in this time of pandemic, and is likely to grow into one of major future growth engines. We will do the following to promote an ‘untact’ economy.
Invest around 1.6 trillion won next year in the eight promising ‘untact’ industries[2]
- Improve the current certificate system for financial transactions
- Allow insurance to be provided on AI-based platform
- Develop 18 smart hospital models
- Launch a pilot project of digital care services, in which 120,000 physically vulnerable will be provided with the care service
- Accelerate transformation into an intelligent government, such as by providing 100 percent digital services for more than 300 types of citizen complaints
- Work to enact a new law on fair online transactions
Promote global ventures in ‘untact’ businesses
- Find as many as 1,000 ‘untact’ startups by 2025 to provide R&D and financial support: Launch 9 trillion won worth of ‘untact’ startup funds for loans, guarantees and investment
- Provide SMEs with ‘untact’ service vouchers worth 640 billion won next year
- Raise 200 billion won worth of global venture capital funds to help ‘untact’ businesses attract foreign capital
- Work for the number of global ‘untact’ ventures[3] to reach 100 by 2025, from 10 as of now
Topics of discussion
1) Plans to promote an ‘untact’ economy
2) Plans to promote global ventures in ‘untact’ businesses
3) Plans to allow no-destination international flights
The government will allow no-destination international flights to help virus-hit international tourism, including duty free retailers. The plans are as follows.
- Temporarily allow international flights with no destination for one year
- Passengers to be in a complete virus control environment and exempted from testing and quarantines obligations after landing
- Allow the same amount of duty free shopping as ordinary flights[4]
- Work to complete the plans by the end of November for airliners to start the service
4) Focuses for the 2021 economic policies
- Help the economy turn around
- Relentlessly pursue the Korean New Deal
- Work to upgrade the economy through the Korean New Deal
The 2021 economic policies will be announced in mid-December
Surging won
With regard to the surging won, we understand concerns of businesses and other economic players. The government is watching the market very closely and will act appropriately to stabilize the market if necessary.
