GOVT ANNOUNCES ECONOMIC PLAN FOR 2020

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The Korean government has unveiled the blueprint of its economic policies for next year. The government set the nation's economic growth target at 2.4 percent and vowed to revive the economy no matter what.

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The Korean government's primary economic goal for 2020 is to boost investment. The government plans to inject a combined amount of 100 trillion won in the private and public sectors. It will also lift regulations and simplify administrative procedures to have private businesses invest up to 25 trillion won. To this end, the government devised new policies to provide financial support amounting to 4.5 trillion won and partially deduct invested amounts from taxes paid by businesses.

[Soundbite] PRES. MOON JAE-IN : "We will invest 100 trillion won in promoting tourism, domestic consumption, the data economy, new industries and the materials sector to make our economy more dynamic."

To boost consumption, the government is considering opening duty free shops in the arrival sections of major airports nationwide, and providing refunds on value added tax to consumers on designated days during the Korea Sale Festa period. Some of the 2020 policies are designed to attract foreign visitors by providing tax deductions to users of domestic lodging facilities and permitting visa-free entry to more tourists. In the first half of 2020, owners of aged vehicles that are more than ten years old will receive 70 percent cuts on the special excise tax for replacing their cars with non-diesel ones. To bolster innovative growth engines, the government will focus on nurturing next-generation industries such as 5G technologies and system semiconductors. It is also considering overhauling regulations in ten heavily regulated sectors including bio-health.

[Soundbite] LEE EOK-WON(MINISTRY OF ECONOMY AND FINANCE) : "The 2019 policies sought to cushion the downward economic pressure, but next year we will strive to build momentum for an economic rebound to boost the economy in a more proactive way."

Policies aimed at helping job seekers and small entrepreneurs will also continue in 2020. In the first quarter of next year, the government will unveil its policies on creating jobs for people in their 40s, who are struggling to find employment, as well as measures to support one-person households.