Ministerial Meeting on the Economy
Deputy Prime Minister Kim Dong-yeon presided over his first Ministerial Meeting on the Economy on June 13, and discussed the current economic situation and the policy tasks of the new administration.
The following is a summary of Deputy Prime Minister Kim’s keynote address:
Current Economic Situation
Major economic indicators have been improving recently in the Korean economy. However, economic sentiment and the job market condition have been sluggish due to weak domestic demand, high unemployment among young adults and widening inequality.
Supplementary budget on jobs
The government has drawn up an 11.2 trillion won supplementary budget plan to help create jobs, which will be funded through tax revenue without issuing bonds. The relevant ministries and agencies should closely cooperate for a prompt passage of the budget at the National Assembly, and should work to produce solid results in job creation.
Agricultural, livestock & fishery product prices
Agricultural, livestock and fishery product prices have increased due to a recent drought and unusually hot temperatures, adding burden on the working class. The outbreak of avian influenza (AI) in Jeju Island and Gunsan has led to price instability and created hardship for farming families. The government will work to prevent the spread of AI and provide support to farmers.
- Help to balance supply and demand of agricultural, livestock and fishery products
- Ban distribution of live poultry products
There is a high likelihood of an additional rate hike at the Fed’s meeting on Thursday, June 15. The government will closely monitor internal and external market developments, and be prepared to take appropriate measures.
For the working class and vulnerable individuals, Fed’s rate hike poses increasing burden on household debt. The relevant ministries and agencies should work on drawing up the government’s comprehensive household debt management plan, which will be announced by August this year.
Housing market overheating
The housing market has shown signs of overheating recently in certain areas including Seoul, and the government has been closely monitoring the situation. The government will launch a task force to prevent illegal and fraudulent activities in the housing market by investigating all areas where overheating occurs and penalizing unlawful activities.
The government will promptly draw up measures to root out speculative activities and stabilize the housing market:
- Provide tailored measures to cool the overheated housing areas
- Support housing transactions to ensure that individuals in actual need of housing are not negatively affected
- Use all policy measures to ensure market stability
Please refer to the attached PDF file