[2021 Budget] 'Korean New Deal' Supports 21.3 Trillion Won... Creates 360,000 Jobs

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is reading the announcement at the detailed pre-briefing on the '2021 Budget Proposal' held at the Government Complex Sejong on the 27th of last month.

[Asia Economy Reporter Kwangho Lee] The government has set 10 major representative tasks to fully promote the 'Korean New Deal' and will support the budget with 21.3 trillion won in next year's budget plan. Through this, it plans to create 360,000 jobs. Previously, the government announced a plan to invest 160 trillion won (114.1 trillion won in national funds) by 2025 to create 1.9 million jobs.

On the 1st, the government announced the '2021 Budget Plan' and presented the investment direction for the Korean New Deal for the great transformation of the Republic of Korea.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, explained, "Next year will be the first year to fully launch the Korean New Deal, a new national development strategy to lead the global economy after the COVID-19 pandemic," adding, "The budget for the full-scale promotion of the Korean New Deal has been reflected, and investments supporting innovative growth such as DNA (Data-Network-AI) and BIG3 (future cars, bio-health, system semiconductors) industries have also been significantly increased."

The government will invest 7.9 trillion won, 8 trillion won, and 5.4 trillion won respectively in the three sectors of Digital New Deal, Green New Deal, and Safety Net. By 2025, it plans to invest 44.8 trillion won, 42.7 trillion won, and 26.6 trillion won respectively.

The Digital New Deal will support 5.4 trillion won to strengthen the DNA ecosystem, including building a data dam, 5G and AI-based intelligent government, and establishing the K-Cyber quarantine system. Specifically, ▲ 100 billion won for building digital education infrastructure and expanding content to create a blended online and offline learning environment for elementary, middle, high schools, universities, and vocational training institutions ▲ 500 billion won for fostering non-face-to-face industries centered on areas closely related to citizens' lives such as medical care, care, work, and business ▲ 1.9 trillion won for digital management systems of core infrastructure, digital innovation of urban and industrial complexes, and building smart logistics systems, i.e., digitalization of social overhead capital (SOC).

The Green New Deal will invest 2.4 trillion won in green transformation of urban, spatial, and living infrastructure such as zero-energy public facilities, restoration of green ecosystems, and establishment of smart water management systems. Notable projects include 519 green smart schools for elementary, middle, and high schools, green remodeling of 82,000 rental housing units, and 50 child-safe green forests. Additionally, 4.3 trillion won will be used for the spread of low-carbon distributed energy such as building intelligent smart grids, supporting renewable energy expansion, and expanding green mobility, and 1.3 trillion won will be used to build a green industry innovation ecosystem including low-carbon and green industrial complexes, research and development (R&D), and green finance support.

The government will also expand the safety net. It will support 4.7 trillion won for employment and social safety nets such as the establishment of the National Employment Support System, abolition of the support obligation criteria for livelihood benefits, and strengthening health insurance coverage. Furthermore, 700 billion won will be invested in human capital, including nurturing digital and green talents, reforming the vocational training system to adapt to the future, and enhancing digital accessibility for vulnerable groups in rural and fishing villages.

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