39^th Meeting of Central Economic Response Headquarters

Government to Attend to

Transition to Post-COVID Economy in H2

Deputy Prime Minister Hong Nam-ki presided over the 39^th Meeting of the Central Economic Response Headquarters held on June 24, and discussed the frameworks of the 2^nd half economic policies, scheduled to be announced early next week.  DPM Hong also talked in his keynote speech about the ways to help small businesses adopt the mandatory 52-hour workweek as it is to expand to businesses with 5-49 employees from July 1, as well as about the plans to develop the shipping industry.

The following is a summary of Deputy Prime Minister Hong’s keynote address.

Frameworks of the 2^nd half economic policies

As the 2^nd half will mark a transition to ‘back to normal’ after the pandemic, including economic recovery, as well as a bridge to a post-corona world represented by high-tech and clean energies, our economic policies for the 2^nd half will contain measures to successfully respond to those challenges, for example measures to accelerate Korean New Deal projects and carbon neutrality.  The government has focused on the following three for its 2^nd half polices.

1) Help the economy accelerate recovery and prepare for post-COVID restructuring, such as by promoting future growth engines

2) Pursue inclusive recovery:  Promote job growth and work to avoid a K-shaped recovery

3) Plan a second extra budget to support the 2^nd half policies

Help adopt the 52-hour workweek as it expands to businesses with less than 50 employees

The 52-hour workweek, first introduced in March 2018, on the verge of expanding to businesses with 5-49 employees from July 1, the government will do the following to help adopt the workhours.

- Help adapt to the new rule before enforcing it

- Provide 4,400 businesses with individual consulting services this year and help them find solutions through the flexible workweek program which allows up to 60-hours a week

- Promote ‘new hiring while retaining current employment’:  Provide a monthly support of up to 1.2 million won per employee, applicable to a total of 80 new jobs and 40 existing jobs for up to two years, and prioritize root industries and businesses located outside the Seoul metropolitan area when assigning foreign labor force

Develop the shipping industry

Following the short-term measures announced last month to address shipping container shortage, the government has decided to work on mid- to long-term plans to upgrade the country’s shipping industry to be more environment-friendly and digital, and finally to be well prepared for future global environmental standards and smart logistics.