MEASURES TO BOOST CONSUMER SPENDING

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The government has raised this year's economic growth outlook to 4%, up one percentage point in 6 months. The forecast is based on expectations that exports will top a record 600 billion dollars this year. The government has also laid out measures to boost consumer spending which remains sluggish, including cashback incentives on credit card spending.

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A national cashback program will apply to all citizens regardless of their income level. The initiative aimed at boosting consumer spending will reimburse a portion of your credit card spending in cash. People who use credit or check cards 3% more than what they spent in the second quarter will receive back 10% of that additional credit card spending the following month. For instance, if a person whose credit card bill was one million won in the second quarter, uses 1.53 million in August, additional card spending past the 3% level amounts to 500-thousand won. This person will then receive back 10% of that amount or 50-thousand won as an incentive. The monthly rebate limit is 100-thousand won per person for a maximum total of 300-thousand won over a three month period.

[Soundbite] Lee Eog-weon(Vice Finance Minister) : "Income hasn't sharply grown but consumers have greatly tightened their purse strings and there is ample room left for spending."

The government will also provide more discount coupons to facilitate spending. The coupon program will be reinforced in agriculture, fisheries and physical training while incorporating new areas such as cinema, professional sports, and rail and bus transport. Coupons prepared last and this year will be doled out in phases once the country's first dose vaccination rate, currently at about 30%, reaches 50%.

[Soundbite] Moon Jae-in(President) : "Bold measures are necessary to support middle and working class families boost their household spending."

The government will also name vaccines, semiconductors and batteries as technologies of strategic importance. Tax deductions will be offered, as much as 50% for research and development and 20% for facility investment in these areas. Support measures for other key industries such as marine transport and shipbuilding will also be announced in the coming months. The government will also speed up the date of scrapping the existing rule of excluding people with economically capable parents or children from receiving state subsidies when their own conditions qualify for assistance. These folks will also be eligible to receive monetary support for heating and air conditioning bills. The implementation will be pushed up by 3 months to October. The government will also revise the current 50% state support provided for enormous levels of medical expenses difficult to be managed by individuals. From now on, the unilateral rate will change and more aid will be given to lower income people.