Hong Nam-ki: "We Will Provide Employment Stability Support of 500,000 KRW per Month for 3 Months to 930,000 People" (Update)

Korean New Deal Focuses on 5G, Data, and AI... Detailed Implementation Plan to Be Announced in Early June

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced on the 7th, "If household income is below 100% of the median income, or the applicant's annual income is below 50 million won, or annual sales are below 150 million won with a decrease in income or sales of 25% or more, we plan to provide employment stabilization support funds of 500,000 won per month for three months." The number of beneficiaries is expected to reach about 930,000 people.

At the 2nd Emergency Economic Central Countermeasures Headquarters meeting held at the Government Seoul Office on the same day, Deputy Prime Minister Hong stated, "Employment-vulnerable groups such as workers in special employment types (teukso), freelancers, and small business owners are outside the protection of employment insurance, which exacerbates their damage and suffering."

Regarding the funding for the employment stabilization support fund, he said, "Considering the urgency of the payment, we decided last Monday to spend 940 billion won from the reserve fund out of the total 1.5 trillion won," adding, "The remaining amount will be secured through the 3rd supplementary budget."

The Korean New Deal will focus on creating digital-based jobs emphasizing the acceleration of digitalization and the promotion of non-face-to-face industries.

He emphasized, "It is a concept clearly distinguished from the existing New Deal concept focused on civil engineering projects for economic stimulus." The Korean New Deal centers on three major project areas: ▲ building digital infrastructure such as data, 5G, and artificial intelligence (AI) ▲ intensive fostering of non-face-to-face industries ▲ digitalization of social overhead capital (SOC). Additionally, it will promote the digitalization of aging national infrastructure and digital logistics service systems.

Meanwhile, the Ministry of Economy and Finance plans to prepare detailed projects by the end of May and announce the detailed implementation plan of the Korean New Deal in early June.

This content was produced with the assistance of AI translation services.