eseoulpost
DomesticEconomy
S. Korea will strengthen income-led growth policy after making changes: finance minister
min  |  min
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
승인 2019.03.01  
트위터 페이스북 미투데이 요즘 네이버 구글 msn
   
 

 South Korea will strengthen its current income-led growth policy after making some revisions to deal with shortcomings, with the goal of benefiting the country going forward, the country's top economic policymaker has said.

 In an interview with Yonhap News Agency in Seoul on Friday, Finance Minister Hong Nam-ki said every effort is being made to speed up the process of getting the Moon Jae-in administration's main economic policy to bear fruit.

 The stance comes as income inequality among South Korean households hit a record high in the fourth quarter of 2018, prompting calls for greater support to lower income earners and a review of current policies centered on such goals as raising the minimum wage, which some critics argue is exacerbating the situation.

 Hong said that policymakers may have focused too much on adjusting the country's minimum wage.

 He said that once related laws are passed by the middle of next month, the country will be able to set the minimum wage for next year based on the new rules, hinting that Seoul may reflect claims by small time businesses that argue a spike in wages is causing more of them to close their doors and make it harder to hire workers.

 

Next year the minimum wage should be determined around July.

 The state-set minimum wage rose 10.9 percent to 8,350 won (US$7.51) per hour this year from 7,530 won last year and rose some 30 percent from 6,470 won in 2017, when President Moon came into office. He has vowed to increase the country's minimum hourly pay rate to 10,000 won by 2020, though he has hinted at a possible delay amid worsening economic conditions.

 Hong added that while the wage increase may have been pushed forward at a slightly faster pace, and policymakers failed to predict some of the fallout, the goal itself should not be altered.

 "Measures to provide more to workers and increase the social security net has been a consistent policy of all past administrations, and this should continue into the future," the top official emphasized.

 The finance minister then said the government is committed to creating more jobs with its fiscal resources and will expand the Earned Income Tax Credit system and basic pensions for the elderly, as well as monetary assistance for young people.

 He said that every effort will be made to create 150,000 new jobs for the whole of 2019, although making it clear that creating good-paying jobs can only be handled by the private sector.

 "With the private sector moving to increase more positions, government increasing spending to make jobs and concerted efforts to help the underprivileged conditions will turn around in the second half of this year," he said.

Cars and containers awaiting shipment at the port of Pyeongtaek (Yonhap)

 On the all important export front, Hong said it may be hard for a turnaround to take place for February, and that there will likely be fluctuations in the first half as a whole, with things likely to get better in the second half.

 "The drop in semiconductor prices are taking place at a faster pace than anticipated, while a drop in crude prices impact the economy," he said.

 Chips and refined petroleum products are key parts of the country's outbound shipments.

 Exports for Asia's fourth-largest economy moved up 8.3 percent in terms of volume but dropped 13.1 percent in value. This trend has impacted other Asian countries, including Japan, Taiwan and Singapore.

 The policymaker said that Seoul plans to announce a plan to breathe new life into exports on March 4 with an emphasis on providing more trade-related financial support to businesses.

 Hong then said that the government is contemplating a lower securities transaction tax that can bolster the local stock market and vitalize the financial market.

 "The government is comprehensively looking at the impact such a course will have on the financial and fiscal sectors," the top official said.

 He, however, made clear that nothing has been decided on the scope and timing for such a move. Hong added that while there are rumors circulating that Seoul may scrap the tax altogether, these speculation are not based on facts.

 The tax first introduced in 1963 levies dues on all stock transactions regardless of whether such a move generated profit. It was scrapped in 1971 but reinstated in 1978, with the tax rate standing at 0.3 percent, including the special tax for rural development.

 In 2018, the government collected a record high 6.2 trillion won in securities taxes, up 1.7 trillion won more than the year before.

 Policymakers have taken flak for holding onto the tax or not making adjustments that better reflect the times and ease the cost for investors that can breathe new life into the securities market.

 On the issue of the transfer income tax for stocks, Hong said that the rate for levying dues will not be altered, but those subject to paying the taxes will be gradually expanded till 2021.

 At present only people owning more than 1.5 billion won worth of securities is subject to the rule, but this will be lowered to 1 billion won in April 2020 and 300 million won in April 2021.

 He added that at present, the government is not looking at revising the stock transfer tax plan, adding that a task force assigned to look into all related matters will release its findings in the middle of 2020. (Yonhap News)

 

< 저작권자 © eseoulpost 무단전재 및 재배포금지 >
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
트위터 페이스북 미투데이 요즘 네이버 구글 msn 뒤로가기 위로가기
이 기사에 대한 댓글 이야기 (0)
자동등록방지용 코드를 입력하세요!   
확인
- 200자까지 쓰실 수 있습니다. (현재 0 byte / 최대 400byte)
- 욕설등 인신공격성 글은 삭제 합니다. [운영원칙]
이 기사에 대한 댓글 이야기 (0)
Most Read
1
SEDD, US Consulate-General discuss Intellectual Property rights
2
UAE Embassy in Korea hosts reception on Monday featuring World EXPO 2020 when preparations hit top gear
3
City Center Almaza in Cairo
4
Mohammed bin Rashid, Mohamed bin Zayed discuss national issues
5
Chinese FM Wang Yi calls for joint efforts for regional peace, stability
6
UAE has adopted technologies of Fourth Industrial Revolution: Badr Al Olama
7
Dubai Islamic Economy Development Centre expands network of strategic partners in GCC region
8
Senior N.K. official warns Pyongyang could resume war of words against U.S.
9
Prosecution raids Cheong Wa Dae office over probe into ex-vice mayor
10
LG Chem, GM to set up EV battery JV in U.S.
Photo News Green Biz
Environmentally Distinctive House initiative launched
Environmentally Distinctive House ...
min
Masdar to bring solar power to 'off-grid' communities around the world
Masdar to bring solar power to 'of...
min
ADNOC ranked amongst five lowest GHG emitters in oil and gas industry
ADNOC ranked amongst five lowest G...
min
World Green Economy Summit 2018 concludes
World Green Economy Summit 2018 co...
min
Restoration of nature requires actions of many :Al Zeyoudi
Restoration of nature requires act...
min
Photo News Sports
Mohamed bin Zayed receives Khabib Nurmagomedov, congratulates him on winning UFC in Abu Dhabi
Mohamed bin Zayed receives Khabib ...
min
Heated start for President’s Jiu-Jitsu Cup Championship
Heated start for President’s Jiu-J...
min
Four Emirati golfers participating in Asia-Pacific Amateur Championship
Four Emirati golfers participating...
min
Taiwan shuts out Japan to clinch U-12 Baseball World Cup title
Taiwan shuts out Japan to clinch U...
min
Mohammed bin Rashid receives trophy from Queen Elizabeth II on historic Royal Ascot win
Mohammed bin Rashid receives troph...
min
(U20 World Cup) S. Korea's Lee Kang-in wins Golden Ball as tournament MVP
(U20 World Cup) S. Korea's Lee Kan...
min
Taiwan recurve women's team win gold at Archery World Cup
Taiwan recurve women's team win go...
min
Dodgers' Ryu Hyun-jin wins 7th game of '19, has scoreless streak snapped at 32 innings
Dodgers' Ryu Hyun-jin wins 7th gam...
min
Photo News World
Mohamed bin Zayed receives Khabib Nurmagomedov, congratulates him on winning UFC in Abu Dhabi
Mohamed bin Zayed receives Khabib ...
min
Heated start for President’s Jiu-Jitsu Cup Championship
Heated start for President’s Jiu-J...
min
Four Emirati golfers participating in Asia-Pacific Amateur Championship
Four Emirati golfers participating...
min
Taiwan shuts out Japan to clinch U-12 Baseball World Cup title
Taiwan shuts out Japan to clinch U...
min
Mohammed bin Rashid receives trophy from Queen Elizabeth II on historic Royal Ascot win
Mohammed bin Rashid receives troph...
min
(U20 World Cup) S. Korea's Lee Kang-in wins Golden Ball as tournament MVP
(U20 World Cup) S. Korea's Lee Kan...
min
Taiwan recurve women's team win gold at Archery World Cup
Taiwan recurve women's team win go...
min
Dodgers' Ryu Hyun-jin wins 7th game of '19, has scoreless streak snapped at 32 innings
Dodgers' Ryu Hyun-jin wins 7th gam...
min
Photo News Opinion
S. Korea issues cold wave alert for Seoul, central regions
S. Korea issues cold wave alert fo...
min
Moon vows unswayed push for peace, innovation, fairness in remaining presidency
Moon vows unswayed push for peace,...
min
S. Korea to strive to attain higher economic growth in 2020
S. Korea to strive to attain highe...
min
Moon to meet party leaders amid political stalemate
Moon to meet party leaders amid po...
min
S. Korea announces first female two-star general
S. Korea announces first female tw...
min
S. Korea deports 2 N. Korean criminals to home country
S. Korea deports 2 N. Korean crimi...
min
3 bodies found at crash scene of chopper near Dokdo islets
3 bodies found at crash scene of c...
min
Rescuers find crashed chopper, body of presumed victim near Dokdo
Rescuers find crashed chopper, bod...
min
Newspaper AboutNews ReportAdvertiseComplaintsPrivacy PolicyJuvenile protectionRejection of E-mail Collection
Gangnam-gu, Teheran 52 street in Tehran Bldg, 616(Yeoksam-dong)  |  Main Phone: 02) 563-0604  |  Fax: 02) 538-5665
Chairman : jeong-woo Lee  |  Advisor : byung-il Min  |  Publisher: jae-mo Kah  |  Editors: il-hong Kim
Registration Number 1928 Seoul ah  |  eseoulpost.com / eseoulpost.net / Global Korea.,Ltd
Copyright © 2011 eseoulpost. All rights reserved. mail to jaemokah@daum.com , kih10kr@empas.com/ www.globalkorea.info
arabafrica.net / UAE Interract / Emirtes News Agency(WAM)/ http://wam.org.ae / www.uaeinteract.com