On May 29, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol presided over the Emergency Economic Headquarters Meetings and the Ministerial Meeting on Strengthening Economic and Industrial Competitiveness at the Government Complex-Seoul.
DPM Koo noted that despite the prolonged conflict in the Middle East, major institutions have revised upward their growth forecasts for the Korean economy this year. Although industrial production in April underwent a temporary adjustment due in part to base effects following strong growth in previous months, the improvement trend is expected to resume as both consumption and business sentiment rose significantly in May and exports continue to show solid growth.
He added that the government will make every effort to minimize the burden on people’s livelihoods arising from high oil prices while injecting new vitality into all sectors of the economy. Effective immediately, the ceiling on oil price-linked subsidies for tax-exempt fuel used in agriculture, forestry, and fisheries will be raised from 12.9 percent to 16.4 percent above the benchmark price, increasing support by KRW 36-42 per liter. The notice prohibiting the hoarding of urea and urea solution, which is currently in effect to ensure stable supply and demand, will also be extended through July. He further emphasized that the government will move forward expeditiously with economic structural reforms and measures to promote corporate investment in order to restore potential growth.
During the meeting, participants discussed the government’s response to developments related to the conflict in the Middle East; measures to redefine and promote reshoring; expanded fuel cost support for farmers and fishers; initiatives to strengthen the culture of maritime safety; and support measures for refund guarantees (RGs) for mid-sized shipbuilders.
First, in response to changes in the global investment environment, the government will ease the eligibility requirements for recognizing the reshoring in high-tech strategic industries in regional areas. The requirement for similarity between overseas operations and reshored domestic operations will be applied more flexibly, taking into account factors such as core technologies and supply chains. In addition, in the case of high-tech industries and supply chain sectors, investments in key manufacturing facilities, or “mother factories,” in Korea will qualify as reshoring even if overseas production bases are maintained or expanded.
To ensure the safe use of maritime services by the public, the government will pursue measures to establish maritime safety as an integral part of everyday life. A safety investment disclosure system will be introduced, requiring passenger ferry operators and shipping companies operating high-risk vessels, such as crude oil and chemical tankers, to disclose their investments in vessel and crew safety, thereby strengthening corporate accountability. A shipping company safety rating system will also be introduced to enable tailored safety management for individual operators.
Please refer to the attached files.
