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Korean New Deal: National Strategy for a Great Transformation.

Type of law

This Korean New Deal is a national development strategy, aiming to support the country s recovery from the pandemic crisis and lead the global action against structural changes. The Policy sets up three main objectives: 1. to minimize the economic shock by creating jobs; 2. to support the Korean economy s quick return to its normal growth path by building the necessary infrastructure for a digital and green economy that will restore investments and support job creation; 3. to adapt to the structural changes and to lead the global community in the post COVID-19 era. The Korean New Deal has three main pillars, including: two main policies the Digital New Deal and the Green New Deal and an overarching policy to strengthen the employment and social safety net.
The government aims to transform South Korea into (1) a smart country at the centre of a digital transition based on data, networks, and artificial intelligence infrastructure; (2) a green country that achieves a balance among people, nature and growth through a green transition towards net-zero emissions as a responsible member of the global community; and (3) a safe country that invests in human resources to create a strong employment and social safety net.
The Digital New Deal has the following objectives: Stronger integration of data, network and artificial intelligence throughout the economy; Digitalization of education infrastructure; Fostering the untact industry including supporting online activities of microbusinesses and promoting remote working among SMEs; Digitalization of Social Overhead Capital (SOC) which includes adding digital innovations to urban spaces and building smart logistics and distribution system.
The Green New Deal proposes three main tasks, including investment, promoting clean energy and supporting innovation. The Policy proposes to invest in 25 smart green cities, numerous city forests, 16 national parks and to restore 25 damaged urban areas. By conducting a comprehensive diagnosis on the climate and environmental challenges of a city, customized solutions based on environmental technology and ICT will be introduced in 25 regions by 2022. In addition to terrestrial, marine, and urban ecosystem restoration, the Policy also proposes a management system for clean water supply to secure drinking water safety and strengthen disaster prevention management by using advanced technology such as the Internet of Things (IoT) and artificial intelligence (AI). To promote resource recycling, support will be provided to develop remanufacturing technology (e.g. the disassembling and reassembling of old electric materials and machineries, engines and exhausts of special vehicles, etc.) and technology on collecting and utilizing rare materials. A loan of 1.9 trillion won will be introduced for the green sector including investment to prevent the environmental pollution of businesses; and a joint fund made up by the public and the private sectors will be set up for 215 billion won to foster green businesses.
The strengthening of safety nets will include expanding employment insurance, increasing benefits for a larger section of the population and ensuring livelihoods and employment stability for those not covered by employment insurance. For example, a Job Search Promotion Subsidy, job-training programs and internship opportunities for the vulnerable including low-income workers, will be expanded. Furthermore, policies to enhance the accessibility to digital infrastructure for rural residents and vulnerable people will also be implemented. An ultrahigh-speed internet network will be built in 1,200 rural villages including island and other remote areas. In addition to the replacement of 18,000 old Wi-Fi equipment, 41,000 high-performance Wi-Fi equipment will be installed in public places such as community centers.
Date of text
Publication reference
The Ministry of Economy and Finance (MOEF).
Source language


Legislation Amendment