Finance chief says will develop policy initiatives for 'great economic leap'
Finance Minister Koo Yun-cheol speaks during a meeting of economy-related ministers at the Government Complex Seoul, Wednesday. Yonhap
Finance Minister Koo Yun-cheol on Wednesday pledged efforts to concretely develop a set of ambitious policy initiatives that will support the government's push for what it calls a "great economic leap."
Under its new economic plan for 2026, the government will work to make the year the beginning of a rebound in the country's potential growth rate while also addressing various challenges facing the country, such as economic polarization.
"The government will make 2026 the inaugural year of a great leap forward for the economy, in which all citizens grow together," Koo said while presiding over a meeting of economy-related ministers, adding that the government will concretely develop policy tasks one by one.
As part of the initiative, the government will first significantly expand a cooperative financing program under which large corporations and financial institutions contribute funds to support their partner small and medium-sized companies.
The program will be scaled up to 1.7 trillion won ($1.15 billion) from the current 1 trillion won, according to the minister.
Participating companies include major conglomerates, such as Hyundai Motor and steel giant POSCO, the finance ministry said.
To encourage participation, the government plans to introduce incentives, including corporate tax deductions of up to 10 percent of contributed amounts, Koo said.
The government will also expand its shared-growth evaluation system to cover all 331 public institutions and introduce a new assessment framework to measure cooperation levels in the defense industry.
In addition, Koo said the government will move swiftly to enact legislation to establish a strategic export finance fund aimed at strengthening support for key export industries.