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News Briefing

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Government announces plans for economic policy directions and New Growth Strategy 4.0
Deputy Prime Minister Choo Kyung-ho presided over the Emergency Ministerial Meeting on Economic Affairs on December 14 to discuss four major agendas of the 2023 economic policy directions and plans for the New Growth Strategy 4.0, and made opening remarks as follows. 2023 economic policy directions The Korean economy is facing highly challenging conditions at home and abroad, and situations are likely to deteriorate in the first half of 2023. Koreas real economy, especially exports, has recently started to slow down due to a decline in global economic growth and the semiconductor markets slowdown. Although upward pressure on prices has been reduced after reaching its peak, it is expected to remain high for the time being, and an increase in employment is also forecast to sharply decelerate due to the base effect. Being mindful of the challenging economic situations, the government will devise the 2023 economic policies in four directions with an aim to ensure that Korea could overcome crises and leap forward again. 1) Manage the macroeconomy in a stable manner by preemptively and proactively responding to changes in economic conditions and risks 2) Support the fast recovery of peoples livelihoods by reducing prices and living costs, creating jobs and strengthening and expanding social safety nets 3) Boost the economy that puts private sectors at its core by addressing imminent challenges regarding export and investment through drastic incentives and regulatory reforms and by actively identifying sectors with new growth potentials 4) Accelerate structural reforms in public organizations, labor, education, finance, and services and reinforce preparations for the future by bracing for population crisis, climate crisis and supply chain realignment New Growth Strategy 4.0 The government will prepare and implement systematic and comprehensive growth strategies to help Korea leap forward again. To that end, the government will establish the New Growth Strategy 4.0 that aims to promote future-oriented industries by upgrading the past growth strategies that focused on the agriculture (Growth Strategy 1.0), manufacturing (Growth Strategy 2.0) and IT (Growth Strategy 3.0) industries. The followings are measures the government will take to achieve its goal. - Identify and implement key projects in promising future-oriented areas including future cutting-edge technologies, digital transformation, and super-gap technologies of national strategic industries - Improve support systems regarding RD, finance, global cooperation, human resource development and regulatory reform in a bid to help effectively carry out the key projects

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