[2023 Economic Outlook] Yoon Drives 'Private, Corporate, and Market-Led Growth'

Yoon Sets Up '120 Major National Tasks' Board and Requests "Complete Mastery"
Focus on Tax Reform, Export Promotion, Deregulation, Labor Market, and National Health Insurance Reform

[Asia Economy Reporter Ki-min Lee] President Yoon Seok-yeol, marking seven months since his inauguration, is hastening the implementation of national tasks centered on 'private sector, corporate, and market-led growth' as core values. Given the global economic recession forecast for 2023, there is a sense of crisis that without swiftly transforming the structure of our economy, the future cannot be guaranteed.

According to the presidential office and political circles on the 15th, President Yoon recently set up a board containing 120 national tasks in the Yongsan presidential office's working room and ordered cabinet members to "fully familiarize themselves with the national tasks." This is to be prepared to explain at any time when requested by the National Assembly and to ensure prompt implementation after the passage of bills.

Among these, the government's most focused economic issues recently are ▲tax reform ▲export revitalization ▲deregulation ▲labor market and National Health Insurance reform. To prevent a vicious cycle caused by declining exports and expanding trade deficits leading to contraction in corporate activities and worsening employment, the Corporate Tax Act is being amended to reduce the top corporate tax rate from 25% to 22%, while deferring the introduction of the financial investment income tax starting next year and promoting taxation on virtual assets.

To foster the semiconductor industry, a key export item, legislative efforts are underway including the Semiconductor Special Act (proposed by Assemblywoman Yang Hyang-ja) to increase the tax credit rate for semiconductor facility investment companies by up to 30%, and the National Strategic Technology Systematization Act (proposed by Assemblyman Kim Young-sik) to develop about ten national strategic technologies such as semiconductors, displays, space and aviation, artificial intelligence, quantum technology, and next-generation nuclear power. Additionally, a Government Organization Act amendment to efficiently reorganize government agencies and 30 bills to streamline the proliferation of various committees criticized as 'tax waste' are also being promoted.

The presidential office is continuing consultations with the National Assembly to process these tasks timely while directly appealing to the public to create reform momentum. In addition to export-related national tasks, efforts will be actively ignited to promote the three major reform tasks?labor, education, and pensions?that affect the national economy and people's livelihoods in the mid to long term.

In his remarks at the Cabinet meeting the day before, President Yoon mentioned plans to flexibilize the 52-hour workweek system on a monthly, quarterly, and annual basis and to resolve the dual structure, emphasizing the urgency of reforming the National Health Insurance for stable fund management. Especially, at the national task review meeting broadcast live from the Yongsan presidential office that afternoon, President Yoon plans to directly appeal to the public on the necessity of realizing mid- to long-term plans related to the nation's finances and economy, including economic and livelihood issues, the vision and strategy for the local era, and pension, labor, and education reforms.

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