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Korea Government Releases

21st Ministerial Meeting on the Economy

Ministry of Strategy and Finance 2016.12.15
Deputy Prime Minister Yoo Il Ho presided over the 21st Ministerial Meeting on the Economy on December 14, and discussed the current economic situation and next year’s fiscal spending plans, ways to help resolve the issue of unpaid wages, the implementation of overseas employment services for young adults and plans to strengthen air cargo logistics services provided at the Incheon international airport.

The following is a summary of Deputy Prime Minister Yoo’s keynote address:

Current Economic Situation

The economy has fared well since the December 9 impeachment decision, as the government’s emergency system has been successfully working. As a result, S&P and Moody’s released their reports saying that the Korean economy is strong enough to appropriately function given its institutional ability. The financial markets, including the FX markets and the KOSPI, have been stable.

However, the government will stay vigilant as the domestic economy and employment continue to slow down, and Fed’s rate hike is likely. We will work to maintain the economy stable and to ensure that low-income groups are not affected.

Stimulate the Economy through Expanded Fiscal Spending

We will work to implement more than 96.6 percent of the budget, a spending target this year, and will make sure that next year’s budget will be properly prepared to be spent from the first day of 2017. The government will aggressively explore projects aimed at helping working classes, of which the budgets are frontloaded.

Help Resolve the Issue of Unpaid Wages

The government will make local authorities form taskforces and accurately assess unpaid wages, and will work for the payment of unpaid wages, as well as for the prevention of such practices. The joint contractor-subcontractor payment guarantee system in which wage payments to subcontractor employees are guaranteed by both subcontractors and contractors will be expanded to the steel, construction and IT sectors, in addition to the shipbuilding sector. The expansion is expected to help resolve the issue of unpaid wages, thus leading to increased stability in the lives of working class families.

Overseas Employment Programs for Young Adults

We will reinforce overseas job match services for young adults and provide information in greater detail. The government job match services have been successful as the number of young adults finding jobs overseas through the K-Move center continues to increase from 1,679 in 2014 to 3,295 as of November 2016. We will encourage those working overseas to share information online and will provide opportunities to access most useful information by arranging job fairs and providing exemplary cases.

Strengthen Air Cargo Logistics Services Provided at the Incheon International Airport

The government will develop the Incheon international airport into Northeast Asia’s air cargo logistics hub: We will develop facilities to provide specialized services to e-commerce shipping businesses, which is expected to attract shippers eager to use innovative services. We will also streamline air cargo transfer procedures for fresh food shipments, which have been significantly increasing, and will reduce time spent from 4 hours to 2.5 hours. On top of that, airlines are promoted to provide all round services covering customs clearance, air delivery and local delivery to the buyer’s door, and this will help e-commerce SMEs save logistics costs.

* Please refer to the attached pdf.
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