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S. Korea aims to underpin economic recovery during Moon's final year in office

All News 16:00 May 07, 2021

SEOUL, May 7 (Yonhap) -- South Korea will implement expansionary fiscal policy to help cement an economic recovery and seek to prepare for the post-pandemic era during the final year of President Moon Jae-in's term, the finance ministry said Friday.

With a single, five-year term, President Moon Jae-in took office in May 2017, with the three key economic policy objectives of prompting income-driven growth, innovative-led growth and the fair economy.

The government will manage its fiscal policy during the remainder of his presidency to prop up an accelerating economic recovery from the pandemic, the Ministry of Economy and Finance said in a report on the assessment of its economic policy over the past four years.

"The government will focus its policy responses on helping the Korean economy grow at the rate of the mid-and high-3 percent range this year," the report said.

The ministry added it plans to step up efforts to revive domestic demand and support job creation in the private sector.

It also noted the country will seamlessly push for the government's signature New Deal initiatives to prepare for the post-pandemic era and strengthen social safety nets.

Asia's fourth-largest economy is on a recovery track on robust exports, after it contracted 1 percent last year due to the fallout of the pandemic.

The International Monetary Fund forecast the Korean economy to grow 3.6 percent this year. The Bank of Korea expected the economic growth rate to reach the mid-3 percent range.

This file photo, taken March 2, 2021, shows ships carrying containers docking at a port in South Korea's southeastern city of Busan. (Yonhap)


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