New Economic Policies

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The government has unveiled new economic policies. The salient point is increasing income first to overcome low growth. The government has also upgraded the nation's projected economic growth rate for this year.

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The government has upgraded the country's economic growth rate for this year to 3 percent. This is 0.4 percentage points higher than the 2.6 percent outlook announced last December. The government said that it will shift the paradigm of economic policies from achieving the growth rate target to increasing household income first in order to boost the economy. To this end, the government has decided to focus its policies on job creation first and foremost. The policies seek to provide larger unemployment subsidies and expand job training to eliminate anxiety over unemployment. They also aim to improve the quality and quantity of jobs by providing tax benefits and raising the minimum wage to 10,000 won per hour.

[Soundbite] Kim Dong-yeon(Minister of Strategy & Finance) : "We will view households not as the objects of distribution, but as contributors of growth and a new growth engine that can boost domestic demand."

The new policies are designed to increase people's incomes by reducing the most essential living costs, such as housing, education and transportation costs. Every year, the government will supply 170,000 public housing apartments. This will be done by re-developing public facilities that are more than 30 years old. The government will also purchase and lease out the apartments of those who have no choice but to sell them to repay their debt. Education costs will be reduced by providing free high school education and subsidies to low-income families. To alleviate the burden of transportation costs, public transit cards offering 30-percent discounts will be introduced. The government has also decided to introduce a so-called "cheques vacation" system to provide vacation allowances to employees in a joint effort with businesses. The government hopes that higher incomes and more leisure time will encourage consumers to spend more.