Novel coronavirus pneumonia has been announced by the South Korean government recently. The “New Deal” will support AI development and 5g network construction with funds to create employment opportunities and promote economic growth.
The term “New Deal” originated from the “Roosevelt New Deal”, which helped the United States recover from the Great Depression of the 1930s. The common ground between South Korea’s “New Deal” and the former lies in state intervention in the economy. This time, South Korea’s “New Deal” has added new era content. South Korea’s “New Deal” includes investing funds to support the development of AI and new sites for robot testing. It aims to help enterprises focus on digital reform and enable public funds to support the construction of national 5g network.
“The plan focuses on digital projects and large-scale innovation projects that have a significant synergy with private investment. The ‘New Deal’ will have a positive chain reaction to the overall economy of South Korea and will continue to be promoted in the next two to three years,” Hong Nanji, Vice Premier and Minister of economy and Finance of South Korea, said in an interview with local newspaper media
The “New Deal” statement said that the funds for these projects will come from the third emergency budget currently being drafted and the annual budget up to 2022. South Korean President moon Jae in the past said he would spend 10 trillion won (8 billion 220 million dollars) to create 500 thousand jobs.
This is not the first time the South Korean government has supported the economy after the economic crisis. Many consortia and family enterprise groups in South Korea, such as Samsung, LG and SK groups, were established with government funds after the Korean War.
Meanwhile, novel coronavirus pneumonia reports show that the Korean economy has experienced another month of rising unemployment since the financial crisis in 2008, with young people and part-time workers being the most affected by the new crown pneumonia epidemic.
So far, novel coronavirus pneumonia has been committed to invest 19 trillion and 300 billion won (US $15 billion 860 million) to alleviate the impact of the new crown pneumonia epidemic on our economy.