21st Meeting of Central Economic Response Headquarters
6th Ministerial Meeting on the Korean New Deal
Government to Recalibrate its Demand Boosting Measures amid Signs of Resurgent Virus
Deputy Prime Minister Hong Nam-ki presided over the 21st Meeting of the Central Economic Response Headquarters, which is also the 6th Ministerial Meeting on the Korean New Deal, held on November 26. Plans to adjust the latest government measures to boost consumption are main topics of discussion as there have recently been signs of a resurgent virus. Other topics of discussion are ways to develop high-tech SMEs for them to help achieve local economic growth and plans to use ICT technologies to accelerate the transformation into an ‘untact’ economy. DPM Hong talked about strengthened social distancing and the current economic situation at the beginning of his keynote address.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
Social distancing raised to Level 2
Social distancing has been raised to Level 2 in the Seoul Metropolitan Area and some other regions since November 24. It is disappointing because the economy has just begun to show signs of recovery. Consumer confidence and business confidence for November improved to 97.9 and 85, respectively, and despite the pandemic, exports improved 11.1 percent for the November 1-20 period and KOSPI hit a record high on November 24. Contact-free consumption becomes more and more common via online and delivery.
We cannot let this recovery momentum go. We will adjust our demand-boosting policies to maintain the recovery momentum, as well as to effectively respond to a resurgent virus.
Recalibrate consumption-boosting measures amid signs of resurgent virus
The government will reorganize measures into two: Those requiring fast implementation and those requiring adjustment.
Measures to be fast implemented
- Fiscal spending: Make the least of budget spending transferred to next year, a total of more than four trillion won to be spent this year as a result
- Export shipping: Add five cargo ships to export shipping and offer shipping capabilities of 350 TEU per shipper for small exporters
Measures to be adjusted
- Put a limit on the use of government coupons and allow them to be used for food delivery
- Hold Christmas Market, the country’s sales event, online
- Start working on next year’s job creation projects to make available as early as possible the 1.03 million jobs planned to be created next year
Topics of discussion
1) Recalibrate consumption-boosting measures amid signs of resurgent virus
2) Ways to grow high-tech SMEs for them to help achieve local economic growth
The government will reorganize key local industries according to the Korean New Deal classification of digital, green and high value-added industries. There will be a total of 48 sectors as a result, and the government will offer each sector the support it needs, which includes investment, R&D financing, loans and guarantees, market development including overseas markets, and job training.
As many as 100 local enterprises will be selected for R&D and commercialization support, and as future leaders of the local economies.
The government will make regulation-free zones a foothold in the local New Deal and specify the types of regulation-free zones, if they are Digital New Deal or Green New Deal, for the new zones added. A green startup town will be set up next year, as well as innovative SME towns.
3) Plans to use ICT technologies to accelerate the transformation into an ‘untact’ economy
- ICT technologies to add convenience to everyday life: Digital ID, bills delivered via mobile, Doctor Answer 2.0 (an upgrade of Doctor Answer, an AI-based healthcare solution), and digital leisure platforms equipped with XR and 5G technologies
- Help with ‘untact’ businesses: Provide ICT R&D support and AI vouchers to help with core technology development, work on Korean standards to promote an ‘untact’ industries, and provide ICT enterprises with a support package of loan guarantees and overseas marketing
- Pursue safety and inclusiveness: Work to ensure the safety of ‘untact’ products and services, and increase the number of information protection support centers to help ICT companies with their information protection
- Enhance citizens’ digital capability: Make courses available at 1,000 centers to help bridge the digital divide
