ANNOUNCEMENT 14 Jun 2020
July 14th, 2020 - The South Korean government announced a government-led commercial support programme which would see $133bn of state funding invested for five years.
NUMBER OF INTERVENTIONS
South Korean Ministry of Economy and Finance, July 14th, 2020. 'Government Announces Overview of Korean New Deal'
Ibid., September 3rd, 2020. (국민참여형 뉴딜펀드 조성 및 뉴딜금융 지원방안 발표)
On July 14th, 2020, the South Korean government released an overview of a plan dubbed by the administration the 'Korean New Deal' (hereafter referred to as such).
This plan would build on various large government financial stimuli already issued over the course of 2020 to tackle the fallout of the COVID-19 pandemic in Korea (see related acts), with the deal promising a total government commitment of over USD 133bn (KRW 160tn) to be injected into the economy by the end of 2025.
The main directions for investment are twofold: a 'Digital New Deal', aimed at growing the economy through further digitising various industries, and the 'Green New Deal', aimed at doing the same as the former, but through bolstering the growth of the green technology industry within the country. It therefore qualifies as sector-dependent government support, however, the precise nature of the support is stated only through the budgets provided for 'investment' in the relevant sectors.
The precise structure of the deal is subject to change and will certainly be clarified and adapted by future announcements from the Finance Ministry and others given the charge of achieving its aims, which, according to President Moon Jae-In, are rather ambitious, with it being 'the blueprint for South Korea's next hundred years', according to a statement given at the press conference on July 14th.
Due to the fact that the exact implementation paths of the New Deal are not yet precisely defined, this intervention is considered by the GTA to be horizontal in scope.