3-year Plan for Economic Innovation Directed Towards Reform, Growth and Balance.The government unveiled tasks to usher in an ear of the "People's Happiness", focusing on reforming the public sector, promoting a creative economy and boosting domestic demand.

Global economy	Domestic economic problems	Strategies to address problems
- Global economy in “Great Transition”   - Fast changing trade environment	Inefficiency in the public sector and unfair practices in the private sector	Fair and efficient economy
	The economy losing growth momentum	Growth through innovation
	Imbalances between sectors, leading to structural vulnerability	Balance between exports and domestic consumption

Framework of the Three-Year Plan for Economic Innovation (3 strategies and 9 focuses)

Goal	Achieve the era of “People’s Happiness and prepare for unification”
Three strategies	Fair and efficient economy	Growth through innovation	Balance between exports and domestic consumption
Nine focuses	1) Reform the public sector on the basis of efficiency 2) Reform the private sector on the basis of fair practices 3) Strengthen social safety nets	4) Promote a creative economy 5) Invest in the future 6) Develop overseas markets	7) Boost investment 8) Stimulate domestic consumption 9) Increase female and youth employment

1) Fair and Efficient Economy

Reforms targeting the public sector will be based on the principle of efficiency, and public institutions will be the main target of reform. Public enterprises will reduce their debt, end careless management practices and improve productivity.

Private sector reform will be focused on correcting unfair business practices, and the primary focus will be to put a stop to unfair trade practices between large enterprises and medium- and small-sized enterprises (SMEs), to solve conflicts in the labor market by promoting a culture of mutual understanding between management and labor, and to increase consumer protections in the financial industry. On top of that, the government will strengthen the social safety net in order to support those left behind due to the reforms that will be carried out.

2) Growth through Innovation

The government will lift regulations and encourage entrepreneurs to start new companies in order to promote the creative economy. The whole cycle of business startup, growth and sales, followed by the starting of new businesses, will be supported with programs specifically designed for each stage.

There will be increased investment in the future: investment in R&D, convergence between ICT and other industries, and future issues including climate change.

The Three-Year Plan also prioritizes overseas market development by promoting FTAs, overseas construction and plant construction, and content exports.

3) Balance between Exports and Domestic Consumption

Easing household debt burdens and the high cost of rental housing is the government’s top priority, since they impose constraints on consumption.

The government will lift regulations and promote the service sector, which will lead to more investment

The government will continue to support training and work&study programs in order to increase youth employment, and will work on reemployment after maternity and childcare leaves to promote female employment.

1) Macro-economy

• Reach 70 percent employment
• Four percent growth potential
• Increase per capita income beyond US$30,000 and into US$40,000

2) Real Economy

		2013	2017
Age groups	Youths	Difficult to find jobs they want until they graduate and meet excessive requirements	Opportunities to be increased by implementing work&study programs
	Women	Difficult to go back to work after maternity or childcare leave	Developing one’s career and being a mother at the same time in a family friendly work environment
	Elderly	Low and unstable income	Stable income with basic pension plans, retirement pension plans and private pension plans
Economic participants	Households	Household debt burdens, high housing and education costs	- Household debt burdens to be eased - Number of home transactions to increase while rental home markets stabilize - Education costs to fall by more than 2 trillion won
	Employees	Discrimination against irregular workers in wages and working conditions	Regular and irregular workers to receive compensation they deserve regardless of their status
	Companies	Investment hampered by regulations	Increased investment in the creative economy
Enterprises	Small businesses	Frequent failure due to lack of expertise	Increased competitiveness and profit through training and tax incentives
	Venture startups	Fund raising difficulties	Difficulties to be eased for good business ideas
	SMEs	SMEs want to retain SME status and receive government support	SMEs aggressively grow business and enter global markets

Indices	2013	2017
Youth employment (thousand, accumulated)	100 (as of 2014)	500
Female employment* (thousand, accumulated)	290 (as of 2014)	1,500
Household debt/disposable income (%)	High 160’s	Low 160’s
Education costs (trillion won)	19	Less than 17
Venture startup investment (trillion won)	1.4	3.0

* Women aged between 16 and 64

3) Public Sector Reform

Indices	2013	2017
Public institution debt (%)	239	200
National debt (% to GDP)	36.2	35.6
Subsidies fraud	To be removed through thorough investigation by 2017

4) Investment

Indices	2013	2017
R&D investment (% to GDP)	4.4	5.0
Investment in venture startups (trillion won)	1.4	3.0

5) Exports

Indices	2013	2017
Markets created by FTAs (% to Global GDP)	55	70
Online exports (US$ million)	25	100

6) Service Sector

Indices	2013	2017
Value added ratio	58	Over 60
Foreign investment (US$ billion)	14.5	25.0
Foreign tourists (thousand)	12,170	19,000