In a meeting of economy-related ministers in Seoul on Wednesday, Finance Minister Hyun Oh-seok unveiled a guideline for crafting the government's three-year economic innovation plan.
The three main principles of the plan that will serve as a cornerstone for the country's sustainable growth are rooting out bad practices, nurturing a dynamic and innovative economy and boosting domestic demand.
"The emphasis on the three aspects is designed to lay the foundation for another leap forward, resolve chronic problems of our economic structure and prepare for future changes."
The immediate focus of the government will be on tightening lax management at debt-ridden public organizations, ending abusive business practices of large companies and institutionalizing fair competition.
The guidelines include plans to promote an innovative economy by fostering environmentally-friendly industries, expanding mergers and acquisitions among startups and other companies in new growth areas, and helping them find new partners and markets.
The government also plans to boost domestic demand by supporting small and medium-sized businesses and rewriting regulations to promote education, health, tourism, and other service industries.
The three-year plan differs from previous economic development plans in that it focuses on structural reforms instead of seeking immediate growth.
Under the plan, the government expects the nation's growth potential to grow to around four percent, the annual per-capita income level to reach 40-thousand U.S. dollars and the overall employment rate to hike to 70 percent.
The finance minister said that the government will work closely with the private sector to effectively carry out the targeted reforms.
Hwang Ji-hye, Arirang News.