Preparing: Post COVID-19 Era

All About Korea’s Response to COVID-19

Key Sectors inKorea’s Response to COVID-19

3.1. Korean New Deal

The Korean New Deal is a package program launched by the Korean govern- ment to achieve its vision of transforming Korea into a first-mover economy from a fast-follower economy, into a low-carbon economy from a carbon-intensive economy, and into a more inclusive society. It is a two-fold program consisting of the Digital New Deal and the Green New Deal, and the govern-ment will be injecting KRW 160 trillion (USD 137.5 billion) into jump-starting economic growth based on a stronger safety net.

Firstly, a total of 12 projects aimed at strengthening Korea’s competitive edge in digital performance will be rolled out under the Digital New Deal.

Drawing on Korea’s strength as an ICT powerhouse and its world-class e-government infrastructure and services, the Korean government will seek to create an ecosystem for data, networks, and AI technologies; promote non-contact industries; and digitalize SOC to speed up Korea’s transition to a digital economy.

Secondly, the Green New Deal will be carried out in eight projects for con-verting Korea into a carbon-neutral economy, with its carbon emissions at a near net zero level, and for building a low-carbon and eco-friendly economic structure. Through the Green New Deal, the Korean government will focus its investments on promoting green infrastructure, new renewable energies, and green industries to strengthen Korea’s response to climate change and achieve an eco-friendly economy. The final goal is to make Korea into an advanced green country that strikes a balance between its people, the environment, and economic growth while faithfully fulfilling its duties as a member of the international community.

Lastly, the Korean government will be implementing eight projects on re-inforcing the social safety net in order to alleviate job insecurity; bridge the income gap; and help people adapt to the uncertainties caused by

All About Korea’s Response to COVID-19

reconfigurations in the economic structure. In preparation for uncertainties arising from economic restructuring, these projects will help eliminate the blind spots in the employment and social safety nets and boost the resilience of all economic players by providing stronger employment and social safety nets as well as expanding investment in human capital and in training pro-fessionals for a digital and green economy.

Through the Korean New Deal, the Korean government will invest KRW 67.7 trillion (USD 58.2 billion) to create around 887,000 jobs by 2022. By 2025, the total amount of investment will reach KRW 160 trillion (USD 137.5 billion) and 1.9 million jobs will be created.

3.2. Innovating Industrial and Economic Structures

In preparation for the post-COVID-19 era, the Korean government will innovate the industrial and economic structures by improving relevant regulations and systems and actively utilizing digital technologies such as big data. In order to strengthen Korea’s competitiveness and increase the use of smart and eco-friendly technologies in the core industries, the Korean government is planning to conduct R&D projects aimed at building smart factories, smart industrial complexes, smart ports, and smart cities — all of which is enabled by ICT technologies, big data, and AI — and has been carrying out relevant measures in phases.

In addition, the Korean government will utilize the newly-built R&D big data platform that connects regional smart farm data centers to existing government agency database to systematically collect research data on the agri-food industry and use it for smart farms. Moreover, for the home appliance sector, plans are underway to encourage the use of big data platforms for IoT home appliances to strengthen national competitiveness and, while doing so, solidify the social safety net. This means that society

Key Sectors inKorea’s Response to COVID-19

Hydrogen car charging station in Mapo-gu, Seoul³⁴⁴

should be geared toward inclusiveness and seek to leave no one behind.

In Sum, the Korean government plans to lay the foundation for global and local industrial convergence. The Korean government also announced the 2050 Long-Term Low Greenhouse Gas Emissions Development Strategies³⁵⁵to proactively address climate change issues and successfully make the transition to a low-carbon society.

34　Safeguarding Economic Resilience (June 11), Ministry of Economy and Finance 35　Long-Term Low Greenhouse Gas Emissions Development Strategies

All About Korea’s Response to COVID-19

3.3. Building the Foundation for an Inclusive Country

The Korean government’s economic policies described above, including the Korean New Deal, demonstrate its commitment to implementing growth-oriented economic policies while promoting social policies for reinforcing the employment and social safety net. This is also the goal and direction of the Korean government’s national development strategies for building an “innovative and inclusive country.“ The COVID-19 crisis has made clear that this indeed has to be our direction. We will pave the way for building an inclusive country by adopting a national employment support system, launching a Community Youth Safety-Net team, and reducing the burden of childcare so that those who are in the blind spots of the employment safety net can also receive support.

For more information

Part Organization Division Email Contact

General Information

Ministry of Economy and

Finance

Development Finance Division

daunjeong@

korea.kr +82-44-215-8791

Key Sectors inKorea’s Response to COVID-19

The Korean government’s efforts to protect its people from COVID-19 have not been confined to inside Korea. Around 30 million Koreans go overseas every year and there are Koreans in every part of the world. The Korean government has exerted steadfast efforts to repatriate Koreans stranded