President Moon Tightens Grip on 'Economic Recovery'... To Chair 5th Emergency Economic Meeting Next Week
[Asia Economy Reporter Son Sun-hee] President Moon Jae-in will preside over the 5th Emergency Economic Meeting at the Blue House next week and launch an all-out effort for 'economic recovery,' including unveiling drastic employment measures. Given that the ruling party won a landslide victory in the April 15 general election partly due to evaluations of the COVID-19 response, the priority is to manage the anticipated economic impact.
The 5th Emergency Economic Meeting, expected to be held early next week, is taking place about two weeks after the previous one, which was postponed due to the election schedule. In particular, the upcoming employment measures are expected to discuss not only direct support for the unemployed but also assistance for crisis-hit industries such as aviation and tourism, which have been severely affected by the COVID-19 pandemic.
President Moon stated directly at the senior secretaries and aides meeting held on the 13th, "We will address employment issues as an agenda." He also said, "The most important focus should be on ensuring that companies maintain employment even if it is difficult," adding, "The government, labor, and companies must work together to find a way to save both businesses and jobs."
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Accordingly, support for companies is expected to focus on 'employment retention,' such as expanding the list of specially supported employment sectors and providing incentives to companies that maintain employment. Additionally, the rapid execution of the 100 trillion won corporate rescue emergency funds decided at the 2nd Emergency Economic Meeting is likely to be ordered. These corporate rescue emergency funds will support not only small and medium-sized enterprises but also large corporations responsible for key industries. This measure aims to prevent companies from going bankrupt due to temporary liquidity crises caused by the COVID-19 situation. Since corporate difficulties inevitably lead to layoffs and workforce reductions, there is a significant concern that an employment crisis could materialize. President Moon urged, "We must not repeat the experience of losing many jobs during the International Monetary Fund (IMF) foreign exchange crisis."
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