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Gov't to create New Deal fund to funnel investments into future tech

All News 19:39 July 30, 2020

SEOUL, July 30 (Yonhap) -- South Korea's government is moving to create a special fund to support the New Deal initiative and help funnel investment into cutting-edge 5G technology, autonomous cars and eco-friendly sectors, the country's top economic policymaker said Thursday.

In a message posted on his Facebook account, Finance Minister Hong Nam-ki said there is a need to divert large amounts of liquidity in the market from going into real estate and gold buying to more productive activities.

The senior official said the envisioned fund will be set up to allow people who invest to earn a safe and steady income, adding the money could go into critical infrastructure projects and cutting-edge future technologies that contribute to sustainable growth for Asia's fourth-largest economy.

Such a fund could become a key element of the initiative announced by President Moon Jae-in earlier this month. The chief executive said some 160 trillion won (US$133 billion) will be used up till 2025 to create 1.9 million jobs and help the country recover from the novel coronavirus-led economic crisis. The plans will, moreover, help the country prepare for a new era.

South Korea, like other countries, is focusing on such areas as 5G telecommunication and self-driving mobility technologies that promise to create new industries going forward, as well as putting more resources into expanding environment friendly businesses and activities.

Hong said Seoul will look into ways to attract private-sector support for the fund by slashing administrative red tape and providing solid incentives.

"Cooperation by the private sector is very important if the New Deal is to meet expectations and succeed," he stressed.

Finance Minister Hong Nam-ki speaks at an emergency economic policy meeting in Seoul on July 30, 2020. (Yonhap)


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