Start preparing for the third subsidy payment… World Bank economic outlook amid corona spread

(Sejong = Yonhap News) Park Yong-joo, Kim Nam-kwon, reporter Seong Seo-ho = The government will begin the preparation process for the payment of support for the third spread of the new coronavirus infection (Corona 19) from next week.

The World Bank (WB) has its first economic outlook this year.

According to the economy on the 2nd, the government will begin the process of paying support funds for the third spread of Corona 19 from the first week of the new year.

From the 11th of the second week after the announcement during next week, various subsidies will be provided to the underprivileged, such as small business owners, specially employed (special high school) and freelancers.

At the dawn of the 6th, the World Bank announces its first global economic outlook for this year.

Initially, forecasting agencies predicted that this year’s global economy will break out of the Corona 19 situation and bring about a strong rebound, but the situation is getting worse, with the recent spread of the mutant virus around the world has strengthened the blockade.

Major developed countries are trying to speed up vaccination, but the spread of Corona 19 is so fast that the possibility of a delay in the economic rebound is gradually increasing.

The International Monetary Fund (IMF) predicted the global economic growth rate of 5.2% this year in October last year.

On the 6th, the Ministry of Strategy and Finance announced the amendment to the follow-up enforcement decree of the 2020 tax law.

This enforcement decree is to stipulate the details entrusted to the enforcement decree by the revised tax law passed by the National Assembly in December last year.

For example, the various baselines of the financial investment income tax introduced from 2023 and the details of the integrated investment tax credit that will be implemented from this year will be disclosed through this decree.

The Bank of Korea unveils its preliminary balance of payments for November.

Earlier in October, the current account surplus of $11.6 billion, exceeding $10 billion for two consecutive months.

The trend of surplus continued for six consecutive months from May ($2.29 billion) to October. In particular, the size of the surplus in October is not only the largest since September 2017 ($12.34 billion) on a monthly basis, but is also the third largest since January 1980.

The BOK predicted that last year’s annual current account surplus of $65 billion will be able to pass.

A BOK official said, “If the current account surplus in October is maintained until November, last year’s target will be achieved.”

Discussions with the financial authorities on how to reduce settlement dividends for banks are expected to close as early as next week.

As economic uncertainty remains large in the aftermath of the Corona 19 crisis, the financial authorities believe that the banking sector should reduce dividends and expand its ability to absorb losses.

The financial authorities and the banking sector plan to discuss the final draft calculated based on the stress test (financial soundness evaluation) that evaluates whether the impact of each Corona 19 scenario can be withstood.

Financial Supervisory Commissioner Yoon Seok-heon predicted that the dividend payout ratio (dividend/current net income) of banks will be adjusted at a level of 15-25%, which is lower than last year at a press conference.

Looking at the dividend payout ratio of financial holdings last year, Woori Finance 27%, KB Finance[105560] The distribution was 26%, Hana Financial 26%, and Shinhan Financial 25%.

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2021/01/02 09:00 sent