7th Ministerial Meeting on the Economy
Deputy Prime Minister Yoo Il Ho presided over the 7th Ministerial Meeting on the Economy on April 19, and discussed ways to support venture startups, attract qualified foreign work force and remove unfair business practices. Deputy Prime Minister Yoo talked about the country’s current economic situation at the beginning of the meeting.
The following is a summary of Deputy Prime Minister Yoo’s keynote address:
Current Economic Situation
The economy shows signs of improvement as the first quarter growth will likely be higher than the outlook, and the employment data turned out to be better than expected. The IMF, the Bank of Korea and other major economic research institutes revised up the 2017 growth outlook, reflecting their positive views about the Korean economy.
Uncertainties have been eased as to the restructuring of Daewoo Shipbuilding and Marine Engineering (DSME), as creditors have reached an agreement. However, there are worries over North’s nuclear threats and uncertainties as to trade issues linger. The government will keep its level of alertness and be prepared for any possible risks.
Support Venture Startups
The government will provide venture startups with a total of 10.1 trillion won for the next three years according to the three stages of the business cycle: establishment, growth and retrial.
- Establishment stage support will include increased guarantees and loans available to future venture startups with promising technologies
- Growth stage support will be available to those with less than 7 years of business operation, and will include 100 billion won worth of loan programs
- Growth stage support will also include programs which promote R&D and business restructuring
- Retrial stage support will include both financial and procedural help to prop up business closure and encourage starting again
Attract Qualified Foreign Work Force
The government will help medium-sized enterprises hire qualified foreign work force.
- Revise the country’s work visa system according to wages and professions to favor high quality work force
- Encourage foreign students in Korea to work for Korean companies: Expand the government scholarship program to cover more science and engineering majors, and make them eligible for study and work visas that are currently available only to those with Korean government invitation
- Expand family visa eligibility to parents and spouses’ parents in addition to children and spouses for highly qualified worker force
Remove Unfair Business Practices
The government will work to remove unfair business practices between small- and medium-sized enterprises (SMEs) and large enterprises: We will watch unfair contracts and payment suspensions, as well as large corporations’ illegal use of technology developed by SMEs. The government will also require franchisers to provide future franchisees with business information in detail, including estimated costs and profits.
Please refer to the attached pdf