Actions, not words, matter in implementing 2020 economic plans
The government will provide up to 40 trillion won ($34 billion) in financial aid for 1,000 "innovative" companies over the next three years. It will also promote dialogue between existing and future businesses to help address their conflicting interests while carrying out large-scale regulatory reform in major industrial sectors. These were the core points of a joint administrative briefing made by four economy-related ministries to President Moon Jae-in, Monday.
Moon's economic team seems to have decided to focus on innovation-driven growth to upgrade the country's economic growth pattern amid the dwindling working-age population caused by a low birthrate and rapid demographic aging. One of the most salient points in this year's economic report was a system to exempt the providers and recipients of financial support from taking responsibility even if the loans or debt guarantees turn sour ― provided there are no grave legal problems involved. Both lenders and borrowers have often shied away from using the financial support system for fear of penalties in the case of failure, losing the right investment timing and burying innovative ideas or products.
The "mechanism for grand social compromise" is equally noteworthy. Most innovative industries pushed by the government to hasten the era of the Fourth Industrial Revolution will inevitably clash with traditional sectors. As seen in the struggles of "Tada," a ride-hailing service, such conflicts will hinder the expansion of a new services market based on technological innovation. To resolve disputes between interest groups, however, promoting social dialogue for compromise alone will not suffice unless all involved parties are ready to meet each other halfway.
In an opening speech, President Moon told his economic team to maintain the momentum for growth despite the concerns over the new coronavirus outbreak. Reinvigorating the economy by minimizing the fallout from COVID-19 (2019-nCoV) may be more urgent than exchanging armchair arguments. China's economic growth in the first quarter is likely to plummet, and Korea will be unlikely to get out of its economic slump anytime soon. The government, while making sure to maintain the dynamics for innovation-based growth, should make strenuous efforts to ensure momentum for recovery.
The government will provide up to 40 trillion won ($34 billion) in financial aid for 1,000 "innovative" companies over the next three years. It will also promote dialogue between existing and future businesses to help address their conflicting interests while carrying out large-scale regulatory reform in major industrial sectors. These were the core points of a joint administrative briefing made by four economy-related ministries to President Moon Jae-in, Monday.
Moon's economic team seems to have decided to focus on innovation-driven growth to upgrade the country's economic growth pattern amid the dwindling working-age population caused by a low birthrate and rapid demographic aging. One of the most salient points in this year's economic report was a system to exempt the providers and recipients of financial support from taking responsibility even if the loans or debt guarantees turn sour ― provided there are no grave legal problems involved. Both lenders and borrowers have often shied away from using the financial support system for fear of penalties in the case of failure, losing the right investment timing and burying innovative ideas or products.
The "mechanism for grand social compromise" is equally noteworthy. Most innovative industries pushed by the government to hasten the era of the Fourth Industrial Revolution will inevitably clash with traditional sectors. As seen in the struggles of "Tada," a ride-hailing service, such conflicts will hinder the expansion of a new services market based on technological innovation. To resolve disputes between interest groups, however, promoting social dialogue for compromise alone will not suffice unless all involved parties are ready to meet each other halfway.
In an opening speech, President Moon told his economic team to maintain the momentum for growth despite the concerns over the new coronavirus outbreak. Reinvigorating the economy by minimizing the fallout from COVID-19 (2019-nCoV) may be more urgent than exchanging armchair arguments. China's economic growth in the first quarter is likely to plummet, and Korea will be unlikely to get out of its economic slump anytime soon. The government, while making sure to maintain the dynamics for innovation-based growth, should make strenuous efforts to ensure momentum for recovery.
![[ANALYSIS] Tesla, BYD's price cuts unnerve LGES, Samsung, SK](https://img.koreatimes.co.kr/upload/thumbnailV2/b1cf8ba68d474cb69352bfe7ea9d14f0.jpg/dims/resize/178/optimize)
![[INTERVIEW] How ATEEZ achieved worldwide success](https://img.koreatimes.co.kr/upload/thumbnailV2/c7723b56dde94eb4b260950d368fe8fb.jpg/dims/resize/178/optimize)
