Korea to prioritize export, investment, consumption for recovery in H2

South Korea’s First Vice Minister of Economy and Finance Bang Ki-sun announces at an emergency economic vice-ministerial meeting held at the Seoul Government Complex on July 28. [Photo by Yonhap]

The South Korean government will come up with all-round policy measures, including tax and financial support, to achieve economic recovery in the second half of the year, the First Vice Minister of Economy and Finance Bang Ki-sun said on Friday.

“Manufacturing production, a barometer of the economy, turned positive in June for the first time in five quarters, which is a significant indicator for potential recovery,” Bang said, in a meeting in Seoul. “The government will focus on facilitating exports, investments, and domestic consumption, the core drivers of the economy, to achieve a fast and robust rebound in the second half.”

He also added that the government will make utmost efforts to manage the supply and price of agricultural and livestock products. To support swift recovery from any damage caused by heavy rainfall, Bang noted that the government will enable advance payments for agricultural disaster insurance, up to 50 percent of estimated insurance money, and provide compensation for damage from natural disasters by mid-August by fully utilizing government resources.

Regarding the measures for agricultural and livestock products, the government will apply quota tariffs to 3 million tons of chicken by August and expand the supply of alternative vegetables and grocery items.

The supply management guidelines will be updated on an annual basis, with the supply adjustment committee meetings becoming regular on a quarterly basis, for more organized responses to uncertainties surrounding agricultural and livestock products.

As part of measures to facilitate exports, the government will highlight on-site support.

“With the operation of support services for exporters every month and frequent visits to various export locations, such as industrial complexes, port-hinterland areas, and economic free zones, the government will make efforts to address difficulties closely,” Bang said.

The government also plans to establish collaborative networks in promising industries for service exports, such as fintech and edu-tech, starting from August.