Back To Top

Govt's major economic measures unveiled in economy management plan

The following are key measures from the government's economy management plan to be carried out by newly inaugurated Finance Minister Choi Kyung-hwan. The plan mostly focuses on boosting domestic demand, stabilizing people's livelihoods and reforming the country's economic structure.

Expansionary macroeconomic policy

   - Injects 40.7 trillion won in fiscal and financial support to boost economic recovery

   - Strengthens fiscal support by 11.7 trillion won during the second half

   - Expands policy financing support for small- and medium-sized companies through state-run banks by 10 trillion won

   - Draws up a budget for 2015 as expansionary as possible to support economic recovery

   - Improves regulations on foreign currency transactions (July)


Household income

   - Plans to introduce tax schemes aimed at encouraging companies to spend a certain ratio of their profits on employment and investment

   - Plans to encourage companies to hike salaries of their workers through tax incentives

   - Plans to draw up measures aimed at encouraging companies to pay out dividends to investors (August)

   - Expands income deductions on check cards and cash receipts

   - Extends tax deductions on credit card spending by two years


Corporate investment

   - Pursues large-scale infrastructure construction led by private investors

   - Raises lending through the foreign currency stabilization fund to businesses to $15 billion from US$10 billion

   - Improves systems to make business inheritance easier for small companies


Housing market and household debt

   - Adjusts the loan-to-value ceiling to a uniform rate of 70 percent

   - Adjusts the debt-to-income ceiling to a uniform rate of 60 percent


Livelihood

   - Stabilizes prices to help people in their daily lives and strengthens the distribution structure for widely consumed goods

   - Draws up measures to stimulate competition in communications sector and lower the burden from communication fees (November)


Extra measures

   - Provides support for companies to turn irregular workers into regular employees by picking up salary increases

   - Pushes for strong reform of the debt-ridden public sector

   - Nurtures tourism, medical and other promising service sector businesses

(Yonhap)

MOST POPULAR
LATEST NEWS
leadersclub
subscribe
지나쌤