Anchor: The South Korean government expects the economy to expand three-point-two percent next year, a turnabout from this year's projected contraction on the back of a rebound in exports. The government has pledged various tax incentives and aid programs to stimulate private spending and investments, as well as to create jobs.
Choi You Sun reports.

Report: At a meeting presided over by President Moon Jae-in on Thursday, the National Economic Advisory Council forecast growth of three-point-two percent next year, up over four percentage points from this year's projected growth of minus one-point-one percent.

The Council predicted growth to be buoyed by a rebound in exports from a six-point-two-percent contraction this year to an eight-point-six-percent expansion in 2021, and a current account surplus of 63 billion dollars.

Expecting private spending to increase three-point-one percent, the Council, however, said recovery in face-to-face consumption will be slow due to the prolonged COVID-19 pandemic.

To encourage more consumption, the government will offer an additional income tax deduction on credit card spending exceeding this year's amount, and a six-month extension on a 30-percent reduction in auto consumption tax through June 2021.

Some 50 billion won will be injected to provide a cash refund on high-efficiency home appliance purchases, and issuance of regional gift certificates will be increased next year.

Some 150-thousand people are expected to find jobs next year, but the pace of recovery will not be sufficient enough to be reflected in the growth rate.

The government will introduce an internship program for 100-thousand young people and create over one million jobs in the public sector.

In a bid to transform the domestic economy into a global leader, state support will be directed toward three key future-oriented sectors: future cars, system semiconductors and biohealth. Tax breaks will also be offered to stimulate private investment.
Choi You Sun, KBS World Radio News.