South Korea's finance chief said Monday that the government will lift the country's growth to point-one percent this year by implementing its economic stimulus measures.
This follows as the Bank of Korea revised this year's domestic growth rate to negative point-two percent last weekdue to the impact of COVID-19.
"We do not rule out the possibility of negative growth this year, but we propose growth of point-one percent, due to the effects of the supplementary budget and other strong measures."
At a briefing on Monday to unveil the economic policy direction for the second half of the year, the finance ministry said the government will inject more than 62-billion U.S. dollars into the digital economy and the so-called 'green economy' for the next five years.
The investment plan aims to create over 550-thousand new jobs.
"With the transition to non-contact and a digital economy due to COVID-19, first, we would strengthen the ecosystem for data, networks and AI. Second, we will build a digital safety net. Third, we will foster the non-contact industry."
In addition, the government will inject over 4-billion dollars to protect job markets, including those which have been marginalized when it comes to job safety.
Furthermore, from July, consumption tax deduction rates will be reduced by up to 30-percent from the current 70-percent for buying cars, with more tax benefits for expensive cars.
It will also expand tax benefits for facility investment, while simplifying investment tax deduction rules.
Yoon Jung-min, Arirang News.