청 "Korean New Deal, 'Complete Plan' Impossible... Remaining Process Led by Private Companies"

Lee Ho-seung, Senior Secretary for Economic Affairs at the Blue House Photo by Yonhap News

[Asia Economy Reporter Son Sun-hee] The Blue House stated on the 19th regarding the 'Korean New Deal,' which involves an investment of 160 trillion won by 2025, that "it is neither possible nor appropriate to draft such a large strategy and plan in a completely finalized form," likening it to a construction process by saying, "If necessary, the design must be changed during construction."

Lee Ho-seung, the Blue House Chief Economic Secretary, held a briefing at the press center in the afternoon and said, "The current era is marked by extreme uncertainty beyond measure." This remark appears to be in response to criticism that the comprehensive plan for the 'Korean New Deal' announced by the government on the 14th was somewhat vague and incomplete.

Lee said, "The government's role is to proactively invest finances and reform regulations through institutional improvements," adding, "Ultimately, the (Korean New Deal-related detailed) projects must be completed through private investment." He further stated, "Although a fairly large promotion plan has been announced, a significant portion of the remaining process must inevitably proceed with more tasks led by regions, the private sector, and companies."

He emphasized the inevitability of the Korean New Deal by saying, "The elements of the Korean New Deal, represented by digital and green, are not only pursued by Korea but all countries worldwide are competing to overcome the COVID-19 crisis and prepare for the future," and added, "If the changes of the 'Digital·Green New Deal' dual pillars are unavoidable, wouldn't the answer be to move faster than others to bring competitiveness, productivity, and market demand?"

In particular, he stressed, "Our country must respond sensitively to environmental changes due to its open economic structure," and "We must adopt a strategy to move earlier and respond more sensitively than larger countries."

Regarding criticism from some quarters that it is inappropriate for the Korean New Deal plan, which will involve tens of trillions of won in fiscal investment, to extend until 2025 when the Moon Jae-in administration ends in 2022, he dismissed it by saying, "If the direction is right, it is appropriate to present a 10-year plan, not just five years, so that it continues not only to the next government but also the one after that," and added, "A country with a single five-year presidential term should not operate the nation thinking only about the remaining two years."

Lee reiterated, "The issue is direction," emphasizing, "Without consideration of major trends such as data, 5G, and eco-friendly low carbon, no country in the world will survive going forward."

However, he said, "All structural transformations cannot proceed without losses," and added, "Even if there are some negatives (-), structural transformation is done for a greater positive (+)." He continued, "In the process of technological change, some jobs or companies will decline in rank and lose their positions, but in that process, we must gain two or three positives more efficiently," and said, "It is very important whether the public accepts the situation."

To this end, he added, "It is important to establish a public shareholder-type investment plan as much as possible or to share interests jointly through coexistence, and for the state to set regulations so that private profits do not grow excessively."

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