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S. Korea to set up 20 tln won fund for New Deal projects

All News 10:44 September 03, 2020

SEJONG, Sept. 3 (Yonhap) -- South Korea will set up a fund worth 20 trillion won (US$16.8 billion) over the next five years to promote the Korean New Deal projects that will create millions of jobs and revive the virus-ravaged economy, Finance Minister Hong Nam-ki said Thursday.

The fund will consist of 3 trillion won in government investment, 4 trillion won in investment from state-run financial institutions and 13 trillion won from private financial firms and the public, Hong told a meeting chaired by President Moon Jae-in.

The fund is expected to help channel excess liquidity into the real economy, Hong said.

To help people invest their money in the fund, the government will offer tax benefits, Hong said.

In July, South Korea said it will invest 160 trillion won by 2025 under the bold stimulus package that will create 1.9 million jobs and kick-start the coronavirus-hit economy.

Unlike conventional infrastructure projects, the deal features 28 projects that will transform the nation's fossil fuel-reliant economy into an eco-friendly one and increase state investment in artificial intelligence and fifth-generation (5G) telecommunication services.

The projects are aimed at laying the groundwork for economic growth in the long term while cushioning the economic blow from the pandemic and hastening a recovery.

Finance Minister Hong Nam-ki, who doubles as the deputy prime minister for economic affairs, speaks during a press conference at the government complex in Sejong, central South Korea, on Aug. 27, 2020, to unveil the government's proposal for a record 555.8 trillion-won (US$469.8 billion) budget for 2021 to kick-start a post-pandemic economic recovery, create more jobs, and expand social infrastructure and welfare schemes. (Yonhap)


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