[와이즈경제=김민정기자] On the 18th, Deputy Prime Minister Hong Nam-gi said, “We will implement financial support such as the second financial support program for small business owners and special loans for collective restricted industries without any problems. We will determine that level.”
Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance said at the Macroeconomic Finance Meeting with the President of the Bank of Korea, the Chairman of the Financial Services Commission, and the Director of the Financial Supervisory Service at 9:30 at the Seoul Bank Center on Thursday.
The meeting was held by the heads of macroeconomic and financial authorities a year after discussing financial support measures for the Corona 19 crisis last year.
Deputy Prime Minister Hong Nam-ki said in Moodval that the Korean economy generally showed reverse growth (△1%) last year due to the corona, and that difficulties such as damage to the vulnerable and sluggish domestic demand and employment are continuing.
Fortunately, the recent accumulation of export/investment recovery momentum has continued, and the consumer sentiment index and leading economic index have improved.
In particular, he mentioned that it was of great help that the Korean economy’s credibility, international financial indicators, and financial volatility, which had been a concern during the past economic crisis, maintained relatively stability over the past year.
As for the global economy, while international organizations such as the IMF and OECD are forecasting an economic recovery/rebound this year, uncertainties are still large, but the recent vaccine supply and a decrease in new cases are positive factors.
At the same time, Deputy Prime Minister Hong emphasized that it is very important for us to “break through damage/crisis+minimize risk (soft landing)+recovery/opportunity factors” based on a strict and accurate diagnosis of the global economy and our economy.
First of all, Deputy Prime Minister Hong said that the domestic corona situation has exceeded the wave of the 3rd spread, but has not yet reached a definite complaint and that the damage continues, so it is necessary to maintain an extended fiscal and financial policy stance so far.
At the same time, the government announced that it plans to provide sufficient amount of policy financing to 495 trillion won (an increase of 16 trillion won compared to the previous year’s plan), along with an additional supplementary arrangement to support the victims as soon as possible.
Next, up to now, financial support measures in the process of responding to crises have demanded sufficient support and orderly maintenance.
The BOK said that measures that have fulfilled their roles, such as the Financial Stability Special Loan System, should be normalized (recently terminated), but continued support, such as extensions, of desperate financial support for overcoming the damage and recovering the economy.
Finally, one of the prerequisites under the proposition that this year’s economic recovery and rebound must be achieved is to respond preemptively so that risk factors that will burden the Korean economy do not emerge.
It was also important to manage potential risk factors such as liquidity problems accumulated during the crisis response process, real estate market, household debt, price stabilization, and expansion of financial volatility.
In particular, Deputy Prime Minister Hong prepared a plan to induce liquidity in the market to flow into productive sectors such as the Korean version of New Deal and new growth engines, rather than into non-productive sectors such as real estate, and strengthened management measures for household debt (advanced measures for household debt management in the first quarter ), etc.
Finally, he said that the Korean economy can never neglect the preparation efforts to increase the potential growth capacity of the Korean economy beyond simply overcoming the pre-crisis level.
He added that deep consideration and policy prescriptions are required not only for discovering future food such as promoting the Korean version of the New Deal and fostering BIG3 and ventures, but also preemptively responding to structural changes in the economy and society in the post-corona era.