Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance and Bank of Korea Governor Lee Ju-yeol are having a conversation at the Macroeconomic Finance Conference held at the Seoul Bank Center on the 18th. [사진=기획재정부 제공]
Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance said on the 18th, “We will review the extension of maturity and deferment of interest repayment for all financial sectors scheduled to end next month.”
Deputy Prime Minister Hong said at the Macroeconomic Finance Conference held at the Seoul Bank Center on the same day, “Based on an accurate diagnosis of the global economy and the Korean economy, it is important to △minimize the risk of damages and breakthroughs △to recover the economy and capture the factors of opportunity.
The meeting was attended by Deputy Prime Minister Hong, President Lee Ju-yeol of the Bank of Korea, Chairman of the Financial Services Commission Eun Seong-soo, and Director of Financial Supervisory Service Yoon Seok-heon. The heads of macroeconomic and financial authorities gathered a year after discussing financial support measures to respond to the new coronavirus infection (Corona 19) crisis last year.
Deputy Prime Minister Hong said, “The corona situation in Korea has exceeded the wave of the 3rd spread, but as we have not yet reached a definite complaint, we need to maintain an expanding fiscal and financial policy stance,” he said. “We will discuss the amplitude of this direction.” Said.
He added, “The government plans to execute the finances as early as possible, and to provide sufficient policy financing in the amount of 495 trillion won along with the formation of an additional budget (additional budget) to support the victims.” This year’s policy financing is an increase of 16 trillion won compared to the previous year.
It will also be decided whether or not to extend the temporary measures with the imminent application deadline on this day. Deputy Prime Minister Hong confirmed the policy that “the measures that have fulfilled their roles, such as the recently ended BOK’s financial stability special loan system, will be normalized, but will continue to support the extension of desperate financial support for overcoming the damage and recovering the economy.”
Financial support, such as the secondary financial support program for small business owners and special loans for collective restricted industries, will be implemented without any problems.
He emphasized, “One of the prerequisites of the proposition that the Korean economy must recover and rebound this year is to respond preemptively so that risk factors that will burden the economy do not emerge.”
Deputy Prime Minister Hong said, “It is important to manage the liquidity problems accumulated in the process of responding to the crisis and the potential risk factors such as real estate market, household debt, price stabilization, and financial volatility increase not to be realized.”
He said, “In particular, measures to induce liquidity in the market to flow into productive sectors such as the Korean version of the New Deal and new growth engines, rather than non-productive sectors such as real estate, and strengthened management measures for household debt,” he said. The government plans to prepare and announce a plan to advance household debt management in the first quarter of this year.
Deputy Prime Minister Hong said, “We can never neglect our economy beyond just overcoming the pre-crisis level, but also to increase its potential growth capabilities.” Improvements, etc. are also an immediate task.”
He also added, “In addition to the discovery of future foods such as promoting the Korean version of the New Deal and fostering BIG3 and ventures, deep consideration and policy prescriptions are required for preemptive responses to structural changes in the economy and society that will change in the post-corona era.”