S. Korea to expand investment in New Deal initiative, eyes more job creation

All News 12:00 July 14, 2021

SEOUL, July 14 (Yonhap) -- South Korea said Wednesday it plans to expand its investment in its signature New Deal policy projects in a bid to create more jobs and better prepare for the post-pandemic era.

Under the "New Deal 2.0" initiative, the government will invest 220 trillion won (US$191 billion) in pushing for digital and green energy projects and promoting inclusive economic growth by 2025, up from its earlier investment plan of 160 trillion won.

It is an upgraded version of the New Deal 1.0 drive unveiled last year that centers on laying the groundwork for economic growth over the long haul amid the COVID-19 pandemic.

The country said the key policy initiative, if implemented, will help create around 2.5 million jobs by 2025 from its earlier target of 1.9 million jobs.

This computerized image shows South Korea's goal of going carbon neutral by 2050. (Yonhap)

For the New Deal 2.0 drive, the government focused on policy measures to narrow a social divide caused by the pandemic and support young people's efforts to find jobs.

The initiative consists of four pillars -- the Digital New Deal, the Green New Deal, the Human New Deal and balanced regional development.

The country plans to invest around 49 trillion won in digital projects by 2025 in a bid to nurture new growth of engines in the digital economy.

Of the planned investment, the government will newly spend 2.6 trillion won on fostering new industries promoting hyper connectivity, including metaverse technology, cloud computing and blockchain technology.

For the Green New Deal, the government plans to spend some 61 trillion won to bolster green industries and eco-friendly projects.

South Korea announced last year that it aims to go carbon neutral by 2050 in an effort to transform the country's fossil-fuel reliant economy into an eco-friendly one.

The Human New Deal is aimed at promoting inclusive growth as an economic recovery has remained uneven across sectors, aggravating income gaps between haves and have-nots.

The government plans to invest around 50 trillion won to strengthen the job and social safety nets and nurture talented people in key sectors, including non-memory chips and next-generation vehicles.