[종합] Namki Hong “Supply 500 trillion won in policy finance this year…Support for areas affected by Corona 19”

On the 20th, Deputy Prime Minister of Economic Affairs and Ministry of Strategy and Finance Hong Nam-ki said, “We will expand policy financing in 2021 by about 16 trillion won compared to the previous year’s plan, and supply it at a scale of about 500 trillion won, and the new coronavirus infection (Corona 19) damage field, the Korean version of the New Deal, and the industry. We plan to focus on support in three major areas, including those for enhancing competitiveness.”

On this day, Deputy Prime Minister Hong presided over the Emergency Economic Central Countermeasure Headquarters (Economic Central Headquarters) meeting at the government building in Seoul and suggested ‘2021 policy and finance liquidity supply and management plan’ and’foreign currency liquidity management system and supply system improvement plan’. .

He said, “The reason that this Corona 19 crisis has not transitioned to the financial and foreign exchange crisis as in the past is that in addition to the supply of sufficient liquidity through mitigating monetary policies, 175 trillion won + alpha (α) scale of public welfare and financial stability packages, etc. This is largely due to the strengthening of the soundness of the external sector, which has been improved through lessons from the past crisis.” However, the recent concerns about the real-financial gap and the weakness of the foreign exchange sector of non-banking sectors can emerge as unexpected risks. “We need to put emphasis on creating waterways for investment in the area and strengthening risk management.”

Financial support will be expanded to about 302 trillion won for small businesses and small and medium-sized enterprises vulnerable to Corona 19 damage by sector. In addition, for the full-scale promotion of the Korean version of the New Deal, the company will provide a fund of ‘17.5 trillion won + α’to New Deal projects such as special on-landing (Korea Development Bank) and K-New Deal global promotion (Export-Import Bank of Korea). In addition, KRW 57.3 trillion in support of innovative growth such as’BIG3 (system semiconductor, biohealth, future car)’, KRW 2.72 trillion KRW to enhance competitiveness in materials, parts and equipment industries, and KRW 23 trillion to accelerate industrial structure innovation. It plans to supply a total of 101.6 trillion won.

Regarding the soundness of the external sector, measures were taken centering on the non-banking sector, which has been a blind spot for soundness policies in the foreign exchange sector. First, financial companies set their own risk management standards to induce strengthening of foreign currency risk response capabilities, introduce’three monitoring indicators’ such as foreign currency asset-liability gap indicators for non-banking sectors, and expand the subject of stress testing. It plans to improve the effectiveness of foreign currency liquidity monitoring.

In addition, it plans to supplement the deficiencies of the existing foreign currency soundness system, such as improving the foreign currency liquidity ratio regulation that reflects the characteristics of non-banking sectors, and to provide multi-layered support so that the foreign currency liquidity supply system can be included from the center of the banking sector to securities and insurance companies.

At the meeting on the day,’Measures for stabilizing the livelihood of New Years and stabilizing livestock products’ were also discussed.

Deputy Prime Minister Hong said, “Recently, the third spread of Corona 19 has gradually calmed down, but we are concerned that difficulties in the local economy, employment, and inflation will increase due to the recent avian influenza (AI) and a record cold wave.” As the state is approaching, the government has devised a’safety measure for livestock livelihoods’ and a’measure for stabilizing supply and demand for livestock products’ following customized damage support measures to promote the stability of the people’s livelihood and local economy and preserve the warmth of the holiday amid the Corona 19 crisis.”

Specifically, it operates 620 screening clinics nationwide and 74 hospitals dedicated to infectious diseases at all times, and additionally pays 25.5 billion won for facility and equipment support to private medical institutions that operate screening clinics before the holidays. In addition, in response to the recent record cold wave, an additional 30,000 won of briquette coupons will be provided to low-income families (472,000 won → 500,000 won), and heating equipment will be distributed to 653 residential facilities of the vulnerable nationwide.

In particular, to prevent temporary financial difficulties from leading to business deterioration, we will also promote 384 trillion won of holiday fund loans and 54 trillion won of loans and maturity extensions to small businesses and small and medium-sized enterprises.

Regarding the supply and demand of holy goods, the supply of 16 key holy goods, such as apples and pears, will be expanded 1.3 to 1.8 times higher than usual, and urgent quota tariffs will be applied temporarily so that a total of 50,000 tons of eggs can be imported without duty.

In addition, various incentives such as cashback and monthly purchase limit increase for each local government to sell local love gift certificates more than KRW 4.5 trillion in the fourth quarter to keep the warmth of the local economy as much as possible in traditional markets and alley shopping areas. The sales of KRW 1 trillion will be promoted by expanding the discount rate (5 → 10%) before and after installation. In addition, the first’New Year’s Eve Traditional Market Online Shopping Event’ will be held in collaboration with 100 traditional markets, 3 online shopping platforms, and 9 traditional market online shopping malls.

Deputy Prime Minister Hong said, “We will do our best to provide a support for economic recovery in addition to the steps for the public welfare measures to be announced in the discussion section.”