SEJONG, 1 June 2020 – South Korea’s economic policies to deal with the post-pandemic recovery will be backed by its “Korean-version New Deal” project that will help the nation create new growth engines and jobs once the Covid-19 outbreak wanes, the Yonhap News Agency reported.
The project is one of the key components of the country’s economic policy for the second half of this year as it strives to cushion the economic blow of the pandemic and hasten the economic recovery, according to the Ministry of Economy and Finance.
The project focuses on increasing state investment in artificial intelligence (AI), fifth-generation (5G) telecommunications services and renewable energy to boost growth and jobs.
By 2022, the government will invest 31.3 trillion won (US$25.3 billion or RM109.14 billion) in digital and green technologies.
Under the project, the government will build nationwide 5G networks and train 100,000 professionals in AI. Wireless Internet networks will be built in remote areas.
The project will promote the renewable energy industry and increase energy self-sufficiency. Efforts will be made for public facilities to use green technology.
Also, the project is aimed at establishing social safety nets for all people and creating 550,000 jobs, the ministry said in a statement.
Bang Ki-seon, a deputy finance minister, told reporters the project will help South Korea “make a fresh leap forward in the post-Covid-19 era”.
The project is expected to create jobs for the nation’s transition to a digital economy, Bang said.
The ministry said it expects the nation’s economy to grow 0.1% this year, a sharp downgrade from a 2.4% expansion it forecast last December. That was a more upbeat assessment than that of the Bank of Korea (BoK), which projected Asia’s fourth-largest economy to contract 0.2% this year.
Read more: Bank of Korea expects economy to contract this year due to virus fallout
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