Deputy Minister Ki Jae, Last Major Meeting of the Year... "Nights Spent Sleepless Flash Like a Passing Scene" (Comprehensive)

"Next Year, Best Efforts for a Fast and Strong Economic Recovery with 'Neungseobultakpil' Attitude"

Kim Yong-beom, First Vice Minister of Strategy and Finance (second from left), is presiding over the Macroeconomic and Financial Meeting held at the Seoul Federation of Banks Building on the 22nd.

[Asia Economy Reporter Kwangho Lee] Kim Yong-beom, the 1st Vice Minister of the Ministry of Economy and Finance, mentioned this year’s economic growth forecast as being in the -1% range, leading to interpretations that it was effectively a downward revision. This is because it is broader than the recently announced forecast of -1.1%, and considering the ongoing third wave of the novel coronavirus infection (COVID-19), this assessment is seen as plausible.

On the 22nd, Kim Yong-beom, the 1st Vice Minister of the Ministry of Economy and Finance, presided over a macroeconomic and financial meeting at the Bankers Hall in Myeongdong, Seoul, and stated, "It is expected that the growth rate this year will record in the -1% range."

The government had previously presented an economic growth forecast of -1.1% for this year when announcing the 2021 Economic Policy Direction on the 17th. Accordingly, Vice Minister Kim’s remarks are interpreted as a de facto downward revision.

This evaluation is based on the recent judgment that the resurgence of COVID-19 is becoming serious. The previously announced -1.1% forecast by the government was based on the assumption that the third wave of COVID-19 would be controlled to some extent. Therefore, the mention of the "-1% range" appears to reflect the recent COVID-19 spread situation.

However, a Ministry of Economy and Finance official clarified regarding this interpretation, stating that the expression "-1% range" was used to refer to the -1.1% figure.

Vice Minister Kim also referred to the new unemployment claims in the United States and the lockdown measures in the United Kingdom, saying, "The global economy continues to suffer economic damage due to the resurgence of COVID-19," and added, "Given that market liquidity fluctuations may increase around the year-end and New Year due to risk factors, we will remain vigilant and closely monitor related trends."

Regarding the increased global liquidity, Vice Minister Kim said, "It can cause side effects such as abnormal overheating of asset markets and widening polarization," and expressed, "We will strengthen liquidity support for vulnerable groups such as small business owners who are struggling due to the prolonged COVID-19 pandemic."

He continued, "We will manage market liquidity more carefully so that it is used to enhance the inclusiveness and productivity of our economy," and added, "We will raise private investment incentives in future growth engines such as the Korean New Deal and BIG3 (system semiconductors, future cars, bio-health) sectors to ensure that market funds flow into productive sectors and remain there for a long time, and we will review tax support measures for long-term stockholding."

This macroeconomic and financial meeting was the last of the year. Vice Minister Kim reflected, "As we send off the year, we have spent 2020 amid an unprecedented crisis called 'Corona,' and days when we stayed up all night monitoring domestic and international financial indicators and real-time physical indicators as domestic and international financial markets fluctuated flashed before my eyes like a slideshow."

He emphasized, "Although the COVID-19 crisis still continues, with the attitude of 'Neungseo Bultaekpil (能書不擇筆, a great calligrapher does not choose the brush),' we will do our best for a fast and strong economic recovery next year."

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