160 Trillion Won Invested in Korean New Deal Over 5 Years... Creation of 1,901,000 Jobs

The Korean New Deal Comprehensive Plan is a 'National Transformation Innovation Project'
58.2 trillion won invested in Digital New Deal... 903,000 jobs created
73.4 trillion won invested in Green New Deal... 659,000 jobs created

On the 14th, citizens are watching President Moon Jae-in's 'Korean New Deal National Report Conference' in the waiting room of Seoul Station. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kwangho Lee] The government is strongly promoting the Korean New Deal, which centers on the 'Digital New Deal' and 'Green New Deal' pillars based on the foundation of an employment safety net to overcome the novel coronavirus infection (COVID-19). The plan is to invest a total of 160 trillion won, including 114.1 trillion won in national funds, by 2025 and create 1,901,000 jobs.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced this comprehensive plan at the 'Korean New Deal National Report Conference' presided over by President Moon Jae-in at the Blue House on the 14th.

The Korean New Deal is a project aimed at achieving a great transformation of Korea by combining the government's role as a catalyst, the leading role of companies, and the energy of the people to quickly overcome the COVID-19 economic crisis, create a large number of jobs, and leap forward as a leading country. It can be seen as sharing the same direction as the Moon Jae-in administration's existing concept of an 'Innovative Inclusive Nation.'

The government decided to divide the investment into three stages: this year as the 'Great Transformation Initiation Period,' 2021 to 2022 as the 'Foundation Laying Period,' and 2023 to 2025 as the 'Great Transformation Implementation Period.'

In particular, through close cooperation among the ruling party, government, and private sector, ten representative tasks were carefully selected, including the data dam, intelligent (AI) government, smart medical infrastructure, green smart schools, digital twins, digitalization of national safety social overhead capital (SOC), smart green industrial complexes, green remodeling, green energy, and eco-friendly future mobility.

◆ Accelerating the Transition to a Digital Economy... Fostering a Digital Nation and Promising Non-Face-to-Face Industries = First, to accelerate the transition to a digital economy, a total project cost of 58.2 trillion won (44.8 trillion won in national funds) will be invested in the Digital New Deal by 2025. The goal is to create 903,000 jobs through this.

Specifically, ▲ 38.5 trillion won (31.9 trillion won in national funds) will be invested in the data, network, and artificial intelligence (D.N.A) ecosystem, creating 567,000 jobs ▲ 1.3 trillion won (800 billion won in national funds) will be invested in the digital transformation of educational infrastructure such as elementary, middle, high schools, universities, and vocational training institutions, creating 9,000 jobs ▲ 2.5 trillion won (2.1 trillion won in national funds) will be invested in fostering non-face-to-face industries such as medical care, work, and business, creating 134,000 jobs ▲ 15.8 trillion won (10 trillion won in national funds) will be invested in the digitalization of SOC such as cities, industrial complexes, and logistics, creating 193,000 jobs.

◆ Emphasizing Climate Change Response and Transition to a Low-Carbon Society... Green Transition of Infrastructure and Energy = In addition, a total project cost of 73.4 trillion won (42.7 trillion won in national funds) will be invested in the Green New Deal to strengthen climate change response and realize an eco-friendly economy. It is expected to create 903,000 jobs.

Specifically, ▲ 30.1 trillion won (12.1 trillion won in national funds) will be invested in the green transition of urban, spatial, and living infrastructure to realize a future society where humans and nature coexist, creating 387,000 jobs ▲ 35.8 trillion won (24.3 trillion won in national funds) will be invested in the spread of low-carbon and distributed energy, creating 209,000 jobs ▲ 7.6 trillion won (6.3 trillion won in national funds) will be invested in building an innovative green industry ecosystem, creating 63,000 jobs.

◆ Building a Solid and Dense Employment and Social Safety Net... Expanding Investment in People = The government will build a solid and dense employment and social safety net to protect vulnerable groups from employment shocks in times of crisis and eliminate blind spots. In particular, to support innovation and proactively respond to future labor market and structural changes, investment in people will be expanded, including future-oriented workforce development and bridging the digital divide.

To this end, 28.4 trillion won (26.6 trillion won in national funds) will be invested, aiming to create 339,000 jobs.

Of this, 24 trillion won (22.6 trillion won in national funds) will be invested in the employment and social safety net to create 159,000 jobs, and 4.4 trillion won (4 trillion won in national funds) will be invested in people, creating 180,000 jobs.

To ensure strong execution, the government plans to establish a Korean New Deal strategy meeting chaired by VIPs, build a discussion structure for ruling party and government cooperation, and operate a general practical execution and support organization under the Ministry of Economy and Finance.

Deputy Prime Minister Hong said, "The future changes in our economy and society pursued by the Korean New Deal are a 'smart country' leading global megatrends, a 'green leading country' that harmonizes people, environment, and growth while fulfilling international responsibilities, and a 'more protected and warmer country' that safeguards the lives and jobs of the people and helps them rise again from failure and despair."

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