3rd Ministerial Meeting on the Economy
Deputy Prime Minister Kim Dong-yeon presided over the 3rd Ministerial Meeting on the Economy, held on August 9. The meeting discussed the restructuring of fiscal spending for the 2018 budget proposal, ways to correct unfair business practices between large distributors and SME suppliers, and how the government will work for the new administration’s economic policies.
The following is a summary of Deputy Prime Minister Kim’s keynote address:
Restructure fiscal spending for the 2018 budget proposal
The government will carry out a strong restructuring of fiscal spending to finance extra funds needed, which include the financing of the new administration’s economic policies.
- A total of 11 trillion won worth of spending restructuring to be carried out, an increase from 9 trillion won originally planned
- The 2018 budget to contain increased fiscal spending on welfare and job creation, along with cuts in other projects
- Inessential projects, underperforming projects and delayed projects to be under strong restructuring
- Restructuring to be also focused on enhancing the quality of services the recipients of the project receive
- Spending restructuring in the first year of the administration expected to serve well for the successful implementation of the economic policies during the rest of the term
Correct unfair business practices between large distributors and SME suppliers
The government will seek to correct unfair business practices by
- More tightly regulating unfair practices done by large distributors
- Founding a regulatory basis for strengthening the protection of supplier rights
- Promoting cooperation among businesses in the wholesale industry
The government will continue to work on getting rid of technology theft and ensuring supplier protection.
Work for the new administration’s economic policies
We will focus on sustainable growth and risk management.
- Seek a balance between wage-led growth and innovation-led growth through regulatory reforms and by implementing the supplementary budget as planned
- Measures to address the household debt problems to be prepared in August, which will cover plans to ease the debt growth rate and support potential delinquents
Please refer to the attached pdf