"'Human New Deal', New Axis of Korean New Deal... Investment Scale Raised to 220 Trillion Won"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] President Moon Jae-in declared ‘Korean New Deal 2.0’ on the first anniversary of the ‘Korean New Deal’ announcement. He proposed the ‘Human New Deal,’ which includes the expansion of employment and social safety nets, as a new pillar of the Korean New Deal and increased the investment scale from the existing 160 trillion won to 220 trillion won. The goal is to overcome COVID-19 and advance as a leading nation based on the Korean New Deal.

On the 14th, President Moon chaired the 4th Korean New Deal Strategy Meeting at the Blue House State Guest House and presented the blueprint for Korean New Deal 2.0, stating, "In addition to the ‘Digital New Deal’ and ‘Green New Deal’ of the Korean New Deal, we will establish the ‘Human New Deal’ as another new pillar." He evaluated, "The Human New Deal is an expansion and development of employment and social safety nets. Accordingly, the Korean New Deal now stands on three pillars: Digital, Green, and Human, evolving into a more comprehensive national project that practices the spirit of regional balance."

The Human New Deal focuses on supporting the youth, closing education and care gaps, and nurturing talents in new growth industries, including 90,000 software professionals. President Moon said, "We will spare no policy support for customized asset formation for young people, housing stability, and alleviation of educational expenses."

While emphasizing digital and green transitions, the plan also addresses inevitable job losses caused by these changes through reemployment support. President Moon stated, "We will maintain a digital super-gap by combining 5G and artificial intelligence in everyday life and all industries, and support new ICT convergence industries such as the metaverse. We will also actively respond to changes in the international order, including the introduction of carbon border taxes." He added, "We will help workers smoothly transition to new jobs through job transition training and reemployment support."

As the Korean New Deal evolves into 2.0, the investment scale will also increase significantly. President Moon explained, "By 2025, the total investment in the Korean New Deal will expand from the existing 160 trillion won to 220 trillion won. We will additionally create a 100 billion won citizen participation New Deal fund to share the achievements of the Korean New Deal with the public."

Meanwhile, new tasks added to Korean New Deal 2.0 include fostering hyper-connected new businesses such as the metaverse (Digital New Deal), establishing a foundation for carbon neutrality (Green New Deal), youth policies and gap reduction (Human New Deal), and early discovery of local government-led projects (Regional Balanced New Deal). By 2025, project budgets will expand from 8.6 trillion won to over 8.7 trillion won for the Digital New Deal, from 10.3 trillion won to 12.3 trillion won for the Green New Deal, and from 4.3 trillion won to 9 trillion won for the Human New Deal, respectively.

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