Doors Wide Open

 

Deputy Prime Minister and Minister of Strategy and Finance Choi Kyung-hwan unveiled his third policy package for the stimulation of domestic consumption on August 12. “The common goal of the policy measures is joint growth of the service sectors and domestic demand, while reducing the dependence on the manufacturing industry and exports,” he said.

His first policy package was announced in late July for housing market deregulation, and the second one for boosting the household income through tax reform came out on August 6. The most recent one revolves around the growth of seven service industry segments: healthcare, medical, tourism, education, finance, transport logistics, and software.

President Park Geun-hye deliberated on and fixed 135 specific measures that day at the 6th Trade and Investment Promotion Meeting. The policy tasks constitute one pillar of her three-year plan for economic reform. The Ministry of Strategy and Finance is expecting that the new policy package will lead to the creation of approximately 180,000 jobs and an investment of 15 trillion won (US$14.5 billion).

Most of the 135 action items are characterized by frugality and scheduled to be underway by means of the attraction of private companies and local finance instead of a central government budget. This is to allow for fiscal sustainability. “The government budget will rarely be used with investment attracted mostly through deregulation,” the ministry explained.

One of the focuses of the policy lies in inbound Chinese tourists, reaching about four million in number, and Chinese investment funds. The government is going to support the construction of four integrated resorts in Yeongjongdo and Jeju Island by relaxing regulations, and resume the construction of an international theme park in the Songsan Green City located in Hwaseong, Gyeonggi Province. In total, 11.6 trillion won of new investment is expected from the development of the tourist complexes.

At the same time, the government and Seoul City came up with a master plan for the development of the Han River region and its vicinity by the first half of next year in order to shore up tourism infrastructure. Luxury cruise ships will be put into operation as on the Seine and Thames rivers, while the river ecosystem will recover and cafeteria streets are made along it.

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