Ministry of Economy and Finance (MOEF) is planning to vitalize South Korean economy by increasing private and public investments. It is planning to create more than 100 cases of regulatory sandbox to release new products quicker and invest $2.31 billion (2.6 trillion KRW) into four new industries such as FinTech.
MOEF announced its ‘plans for promoting major tasks in 2019’ on the 6th.
MOEF believed that although there have been changes to South Korean economy by establishing ‘people-centered economy’, there has been consistent difficulties with public welfare such as employment and distribution. In 2019, it is going to focus its political capabilities into creating visual results while supplementing few policies that are different from expectations of markets.
It is planning to increase economic vitality by increasing public and private investments.
It is going to look for large-scale corporate investment projects that are being delayed due to administration procedure and help with early start of these projects. It is going to push for early start on corporate investment project that is worth $7.36 billion (8.3 trillion KRW) and look for new corporate investment projects every quarter by establishing a ‘task force for investment project’.
It is planning to increase amount of major public investments to $47 billion (53 trillion KRW) with SOC (Social Overhead Capital) and energy fields at the center. This amount will be $8.42 billion (9.5 trillion KRW) more than that from last year. South Korean Government is going to receive less allocation from financial organizations to improve their investment capabilities.
MOEF is going to strengthen its support for creating jobs after considering employment crisis such as rapid increase in number of households with no jobs. According to ‘5-year roadmap for employment policies’, it is going to create 29,000 jobs and 66,000 jobs within public sectors this year as part of first and second step respectively.
It is planning to create more than 100 cases of application of sandbox, which exempts regulations, to help businesses with creating new products and services faster.
It is going to prepare plans for financial and taxation support and systematic improvement by investing $2.31 billion (2.6 trillion KRW) into four new industries (Smart Factory, future vehicle, FinTech, bio-health) which is $1.33 billion (1.5 trillion KRW) more than that from last year. For four important industries (automobile, shipbuilding, display, petrochemistry), it is going to resolve short-term difficulties and prepare ways to strengthen competitive edge in these industries.
It is going to test cooperative profit sharing system on 50 companies within this year from mutual cooperation perspective and legalize this system during the second half of this year. If major corporations donate to intra-company labor welfare fund of small and medium companies, they will receive 10% of tax deduction benefit of their contribution.
“We are going to quickly promote major tasks by utilizing every political method that is available to improve our economic vitality and to implement an innovative country.” said a representative for MOEF. “Our economic teams will become one to strengthen communication with markets and companies to improve policies and degree of feeling.”
Staff Reporter Yoo, Seonil | ysi@etnews.com