[2021 Economic Policy] Hong Nam-gi "Expecting 3.2% Economic Growth Next Year... COVID-19, Quarantine Is the Vaccine" (Update)

Deputy Prime Minister Hong Nam-ki Announces 2021 Economic Policy Directions

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki forecasted an economic growth of 3.2% next year through the government's bold investment and consumption stimulation policies. Regarding the recent third wave of the novel coronavirus (COVID-19) pandemic, he emphasized that until 'complete control' is achieved, quarantine measures are the best vaccine and called for nationwide cooperation.

On the 17th, Deputy Prime Minister Hong made these remarks during the announcement of the '2021 Economic Policy Direction' at the Government Complex Seoul in Gwanghwamun, Seoul. He said, "It is regrettable and I feel sorry that after the third and fourth quarters, both economic sentiment and real economic flows were recovering, but we are facing difficulties again due to the recent sharp increase in confirmed cases." He added, "Although the global economy next year carries various uncertainties, we expect an overall improvement in the global economy and trade." He continued, "Considering domestic and external conditions, real economic flows, and policy effects comprehensively, our economy is expected to improve by 3.2% next year," emphasizing, "To achieve this goal, we must fully overcome the crisis quickly and strengthen the momentum for economic recovery."

He presented the government's economic policy goals for next year as ▲ rapid and strong economic recovery and restoration ▲ a major transition to a leading economy. Regarding economic recovery, he mentioned ▲ active economic management ▲ rebound and vitality enhancement ▲ support for improving people’s livelihoods, and for the economic transition, he cited ▲ securing next-generation growth engines ▲ preparing for the future ▲ strengthening inclusiveness and fairness. Deputy Prime Minister Hong explained, "Overall, we aim to restore the economy to pre-COVID crisis levels in the first half of next year, and furthermore, we have a strong sense of urgency to break the cycle of repeated potential growth rate slowdown after economic crises this time."

To fully initiate the transition to a leading economy triggered by the COVID-19 crisis, he pointed out ▲ securing next-generation growth engines ▲ preparing for the future to achieve stable and sustainable growth ▲ strengthening inclusiveness and fairness in our economic society. Deputy Prime Minister Hong stated, "We plan to focus support on four major areas: digital innovation, activation of venture startups, leap to a manufacturing powerhouse, and innovation in the service industry." He emphasized, "In the first year next year, we will raise 4 trillion won for the policy-type New Deal Fund and supply 17.5 trillion won plus α in policy finance." He also added, "We will manage the big three new industries?future cars, bio, and system semiconductors?like the materials, parts, and equipment sector, and foster them as representatives of innovative growth." He stressed the carbon neutrality goal for sustainable growth, saying, "To achieve the future goal of carbon neutrality by 2050, spanning a generation, we will ensure that the 'eco-friendly and low-carbon' principle is maximally embodied across the economy and society, including infrastructure, energy, and industry." He explained, "To accelerate the Green New Deal, we will invest a total of 13.2 trillion won in areas such as green infrastructure, green energy, and green industries."

He continued, "During the COVID-19 crisis, vulnerable groups have been hit harder and faced greater difficulties, highlighting the importance of strong protection, that is, strengthening inclusiveness." He added, "Especially since next year is the first year of implementing the ‘National Employment Support System’ and the ‘Roadmap to Eliminate Blind Spots in Employment Insurance,’ we will steadily prepare foundational tasks such as improving income tracking systems and smoothly implement new systems."

Deputy Prime Minister Hong also called for quarantine measures and nationwide cooperation to prevent the spread of COVID-19. He said, "The government will quickly calm the spread of COVID-19 and, based on this, will surely achieve recovery, rebound, and leap forward of our economy." He asserted, "Until COVID-19 is completely controlled by vaccines, quarantine is the vaccine itself and the fundamental premise for recovery in the economy." He added, "I earnestly ask the public to strictly comply with quarantine guidelines and to unite their strength in line with economic recovery and rebound."

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