Hong Nam-ki: "All OECD Member Countries Praised Korea... Encouraging News"

Hong Nam-ki, Deputy Prime Minister for Economy, Shares Reflections on OECD Korea Economic Report on Personal SNS
"We Will Spare No Effort for the Recovery and Rebound of Our Economy," Emphasizes

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Regarding the OECD's Korea Economic Report, which forecasted that South Korea's economic growth rate this year would be the most resilient among OECD member countries, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, emphasized that it is an "objective evaluation of our economy."

On the 11th, Deputy Prime Minister Hong stated through his social network service (SNS), "This announcement is yet another encouraging piece of news from the international community amid signs of economic recovery and rebound emerging across various sectors of our economy." Earlier, the OECD revised South Korea's economic growth forecast for this year upward from -1.2% to -0.8% in the '2020 Korea Economic Report' released that day. The OECD also evaluated that the economic shock was limited thanks to swift and effective policy responses.

The -0.8% growth rate reflects the results of the second quarter's gross domestic product (GDP) and, although it is negative growth, it is the most resilient figure among member countries. It is significantly better than the growth rates of Australia (-5.0%), Japan (-6.0%), and Sweden (-6.7%).

The OECD Economic Report is published every two years and provides a comprehensive analysis and evaluation of member countries' economic trends and policies, including policy recommendations. Although originally scheduled for publication in May, it was postponed to this month to reflect the impact of COVID-19. Regarding the report, Deputy Prime Minister Hong explained, "The OECD typically prepares country-specific economic review reports every two years, which are known for their depth and richness. The entire report is created through mutual reviews among member countries and in-depth discussions with the evaluated country, not just unilateral assessments by the Secretariat. It contains various policy recommendations beyond a simple diagnosis of the economic situation."

In this report, the OECD evaluated South Korea's quarantine measures and a series of crisis response actions as more successful than those of any other country. Deputy Prime Minister Hong also said, "The report repeatedly mentions the swift quarantine, policy responses, and the outstanding performance of our economy as a result. According to the staff involved, this was unanimous praise from all member countries during the report's preparation process," emphasizing this point.

Highlighting key points, he explained, "The report highly evaluates the Korean government's quarantine and crisis response after COVID-19, as well as the 'Korean New Deal.' It particularly notes that these achievements were made without any lockdown measures, minimizing economic damage." He added, "It diagnosed that active macroeconomic policies, such as expanding fiscal spending based on sound fiscal capacity, were appropriate for crisis response and contributed to cushioning the economic shock."

He also self-assessed that the report's future policy recommendations align with the current government's policy direction. He said, "The main recommendations in the report, such as expanding investment in the digital sector to improve productivity, increasing support for renewable energy and eco-friendly technologies with high fiscal multipliers, introducing universal employment insurance and sickness benefits, and abolishing the support obligation criteria, align with the three pillars of the 'Korean New Deal': Digital New Deal, Green New Deal, and strengthening the safety net. The report also suggests various policies such as employment stability for key jobs in preparation for an aging society, improving job quality for the elderly, improving long working hour culture, regulatory innovation, and enhancing SME productivity. Most of these are tasks the government has focused on in its transition to an 'innovative inclusive nation,'" he explained.

Deputy Prime Minister Hong added, "As the saying goes, 'To see the forest properly, you must step out of the forest,' this OECD report is an objective evaluation of our economy from a balanced perspective, making it even more meaningful. Going forward, while never losing vigilance about the current difficulties and seriousness of our economy, we will spare no effort to overcome the ongoing economic crisis and achieve recovery and rebound of our economy," he concluded.

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