1st Ministerial Meeting on the Economy in 2017

Deputy Prime Minister Yoo Il Ho presided over the 1st Ministerial Meeting on the Economy of 2017 on January 18, and discussed plans to promote employment and encourage tech startups, along with other issues such as mid- to long-term plans to address rice oversupply, current housing markets and the K-ICT spectrum plan[1].

The following is a summary of Deputy Prime Minister Yoo's keynote address:

Promote Employment

Employment is government's first priority in 2017. To help the job market turn away from possible contraction, the government will spend more than one third (33.5%) of the total job creation budget in the first quarter, and newly hire 17,000 public sector workers in the first quarter and 30,000 over the first half. Every ministry is going to work on developing its own job creation project, and the government will select 20 most effective job creation projects currently being carried out and further work on better managing them.

To help young adults find jobs, the government will strengthen its employment services: We will build a job portal for young adults and at the same time increase job fairs through which 12,000 young adults will find jobs. The government has been evaluating current job programs for young adults, and will announced revised measures in March.

To prepare for future job markets, we will continue to work on reforming the labor market and education, and will announce plans to cope with the Fourth Industrial Revolution in March.

Encourage Tech Startups

The government will promote technology-based startups to create decent jobs as it will

Create 3.5 trillion won worth of venture funds, the largest ever, and make 2.3 trillion won worth of investment in ventures

Provide support to venture startups if their businesses are based on state-owned technologies[2]

Expand the growth-stage venture support, aimed at helping companies that maintain their business for 3 to 7 years after the startup, to 1,000 companies, a large increase from 160 in 2016

Ease requirements to promote ventures participating in public procurement markets

Integrate current startup promotion events (103) by business category and by startup development stage, and provide winners with total support from offices to R&D and commercialization

Deal with Rice Oversupply

The government is reviewing measures to balance rice supply and demand, introduced in 2015. So far rice oversupply has continued, leading to low income for farmers and increased fiscal burden on the government. We will encourage rice farmers to grow other crops, and reduce rice paddies by 8.7 percent (68,000 ha) by 2018. We will also work on developing markets for rice products to increase rice demand. Revised measures to address rice oversupply will be announced in February.

Source: Ministry of Strategy and Finance

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