[2024 Economic Policy] Economic Organizations: "Great Support for Economic Vitality and Future Growth Engines"

"Balanced Reflection of Structural Reform Tasks for Future Preparedness"
"Will Contribute to Reducing the Burden on the Livelihood Economy"
"Calls for Smooth Progress of Regulatory Innovation and More"

Economic organizations unanimously welcomed the government's announcement of the '2024 Economic Policy Direction' on the 4th, stating that it will "boost vitality in our economy."

On the same day, the government unveiled plans to inject approximately 150 trillion won in policy financing over three years into key advanced industries identified as ‘High5+’ including semiconductors, secondary batteries, bio, future mobility, and hydrogen. Additionally, it will supply 355 trillion won in trade finance and support achieving $700 billion in exports.

Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Economy and Finance, is delivering opening remarks at the joint briefing on the 2024 Economic Policy Direction held on the 4th at the Government Seoul Office in Jongno-gu, Seoul. The briefing was attended by Park Sang-woo, Minister of Land, Infrastructure and Transport; Kim Ju-hyun, Chairman of the Financial Services Commission; Oh Young-joo, Minister of SMEs and Startups; and Jeong Byeong-geuk, 1st Vice Minister of Culture, Sports and Tourism. Photo by Jo Yong-jun jun21@

The Korea Chamber of Commerce and Industry (KCCI) issued a statement evaluating that "it reflects a balanced approach to structural reform tasks for future readiness while building a dynamic economy in the long term."

In particular, it emphasized that "large-scale trade finance supply, extension of investment tax credits, fostering advanced industries and supporting supply chain diversification, and incentive policies for carbon neutrality implementation are essential not only for economic recovery but also for sustainable growth," adding, "For the government's economic policy direction to yield tangible results, it is necessary to fully listen to the voices from the business field during the concrete implementation process. We hope that legislative and institutional improvements will be pursued with a sense of urgency."

The Korea Economic Organization Association (KEOA) also stated, "The 2024 economic policy direction will enhance our economic vitality and help reduce the burden on the livelihood economy caused by high inflation and high interest rates."

KEOA expressed expectations that "tax incentives such as the extension of temporary investment tax credits and regulatory easing measures like improvements in site regulations will greatly aid in improving the corporate investment environment." It further urged, "As our economy is expected to continue its low-growth trend, we hope the government will steadily advance tasks such as regulatory innovation, labor reform, and tax system improvements to resolve structural issues and enable another leap forward. We request a stronger push for labor reform, which is the most urgent task for advancing labor-management relations."

The Korea International Trade Association (KITA) also expressed its welcome. KITA forecasted that "the supply of 355 trillion won in trade finance for export companies and the extension of tax support for small and medium export companies will significantly contribute to boosting exports for companies struggling to secure funds amid prolonged high interest rates."

Furthermore, it stated, "Measures to improve the business environment such as strengthening investment incentives, eliminating killer regulations, and modernizing the labor market will contribute to enhancing the competitiveness and foundation of export industries," adding, "KITA will continue to listen closely to voices from the field and make every effort to expand exports throughout this year."

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