Deputy Prime Minister Choi Sang-mok held the Ministerial Meeting on Economic Affairs at the Government Complex-Seoul on May 13 to discuss ① plans to Enhance Collaboration in Budgeting, ② current status of venture investment and response measures, ③ strategies to enhance competitiveness of regional scale-up supporting services, and ④ measures to revitalize fishing villages and coastal areas.
The following are key messages of DPM Choi’s remarks.
Over the past two years, the government’s economic team has exerted unprecedented efforts to overcome global crises and improve the fundamental of the Korean economy. However, there is still a long way to go to achieve “growth that people can feel”, and many tasks to be resolved still remain ahead of the economic team, such as addressing issues linked to people’s livelihoods, building a robust middle class, enhancing economic dynamism, and creating high-quality jobs.
The government’s determination to combat these challenges is stronger and firmer than ever. Moving forward, the government is committed to be attentive to people’s lives with deep concern, take good care of their livelihoods, and lay the groundwork for the Korean economy to leap forward, thereby opening the door to a new future for the nation.
To this end, the government policies will reflect the voices of the field and the people; formulate and execute polices by finding problems and solutions in the field, and continuously refine and improve them until the policy effects are felt on the ground. Furthermore, as issues become more complex, it will break down barriers between ministries to expand policy space and capacity, ensuring that the government becomes an “one team finding solutions for the Korean economy”.
[Current Status of Venture Investment and Measure to Provide “Wings of Growth”]
Despite uncertainties such as interest rate fluctuations, venture investments in the first quarter this year are fortunately showing signs of recovery. In order to maintain this positive trend without being swayed by external factors, the government will establish a new venture fund worth 2.8 trillion won this year, while preparing the “Comprehensive Plan for Venture Investment” that covers from fund formation, investment, to exit strategies, in the second half of the year.
[Strategies to Enhance Competitiveness of Regional Scale-up Supporting Services]
Before developing the Comprehensive Plan for Venture Investment, strengthened endeavors will be made to boost the competitiveness of local scale-up supporting services, aiming to facilitate the growth of the startup ecosystem in non-metropolitan areas; support the local investment and nurturing specialist firms to create funds by reducing the burden of securing private sector investors and self-investment funds; expand the size of investment recovery utilizing fund-of-funds to encourage nurturing specialist firms to invest in more venture enterprises.
[Plans to Enhance Collaboration in Budgeting]
Next year’s government budget will be arranged from the perspective of the people rather than individual ministries, with a significant enhancement of collaboration among ministries. Particularly focusing on key areas where concentrated investments are needed, such as addressing low birth rates, supporting youth, and nurturing talents for advanced and strategic industries, the government will shore up coordination among ministries to increase the efficiency of fiscal management and address complex and longstanding economic, social issues from the perspective of the demand side.
[Measures to Revitalize Fishing Villages and Coastal Areas]
Last but not least, as part of efforts to invigorate fishing villages and coastal areas, investment incentives will be raised by establishing opportunity zones utilizing idle national and public lands in fishing villages. Also, the productivity and safety of fisheries will be improved through regulatory reforms and digital transition, creating a fishing community where people find joy in working.
* Demonstrating its strong determination to actively address the challenges facing the Korean economy, the government will convert the “Emergency Ministerial Meeting on Economic Affairs” to the “Ministerial Meeting on Economic Affairs” from today onwards. However, in the event of crisis, the “Emergency Ministerial Meeting on Economic Affairs” will be convened as needed, and the “Ministerial Meeting on People’s Livelihoods” will be held to check the progress of livelihood policies, so that the meeting bodies are operated flexibly in accordance with agendas and economic situations. This will enable the government to respond promptly to changes in domestic and global conditions and timely devise policies that are perceptibly effective.
Please refer to the attached files.
