Moon introduces Korean version of 'New Deal'

[智雲]

President Moon Jae-in speaks during an event at Cheong Wa Dae, Tuesday, to introduce his Korean New Deal initiative for economic growth. Yonhap

By Do Je-hae

Information technology and low-carbon initiatives will be key factors to transform Korea into a global pacemaker in the post-coronavirus world, President Moon Jae-in said Tuesday.

The President announced a package of measures dubbed the "Korean New Deal" designed to create jobs and spur growth to revive an economy that is struggling from the impact of the COVID-19 pandemic. To accomplish this, the government will spend 160 trillion won ($130 billion) with the aim of providing 1.9 million jobs by 2025

Moon underscored that his administration will use the COVID-19 crisis as an opportunity to upgrade the nation's economy by promoting digital industries, pledging to make utmost efforts to help the country better adapt to socio-economic changes.

"No one should be left behind in the face of a crisis. Everyone needs to be able to coexist," he said in a keynote speech while announcing the plans at Cheong Wa Dae, participated in by government officials, business leaders, labor representatives and private citizens.

He noted Korea has overcome many hardships, such as the foreign exchange crisis in the late 1990s and the global financial crisis in the 2000s, but these exacerbated the polarization of wealth and increased job insecurity.

"We will use the COVID-19 crisis as an opportunity to strengthen the social safety net and reduce inequality. The role of the government has become bigger and the responsibility has become heavier. We will expand fiscal spending and make bold investments for the future. The government will take the lead in creating new jobs," Moon said.

"We will concentrate our national capabilities on resolving inequality and expanding the safety net. Using the Korean New Deal as a national development strategy, I will do my best to fulfill the role and responsibilities of the government, changing our economy, our society and people's lives. We will select a large-scale national project as a representative project and invest in it heavily."

Through the implementation of the Korean New Deal, Moon said Korea will re-establish its standing in the international community as a "leading economy."

"I hope the Korean New Deal will be a new opportunity for people who need jobs," Moon said. "The comprehensive plan for the Korean New Deal that we are announcing today is the beginning of a great transformation of Korea. It is the starting point for a country that leads the world."

He explained that the government has selected 10 signature projects for the "Digital New Deal" and "Green New Deal," two pillars of his Korean New Deal roadmap, including eco-friendly mobility, a smart healthcare infrastructure, green energy, and the digitization of social infrastructure.

Finance Minister Hong Nam-ki also gave a briefing on the specifics of the Korean New Deal initiative.

"Through innovative green projects, we will become a country that leads discussions in the international community on environmental problems such as climate change," Hong said. "During the COVID-19 pandemic, we have witnessed employment shocks, income gaps and blind spots in the welfare system. We will strengthen the social safety net and foster core personnel in new industries."

He said the government will expand the number of people eligible for employment insurance gradually from 13.67 million last year to 21 million by 2025. It will also train 100,000 key personnel in software and artificial intelligence and 20,000 more in green convergence technology to respond to changes in the employment structure.

"The future generations should not remember 2020 only as the year when COVID-19 became a global pandemic. I hope that future generations will remember it as the first year of the successful overcoming of COVID-19 and the first year of the bold journey of the Korean New Deal."