SEOUL – South Korea on Wednesday announced planning to invest 220 trillion won (about 190 billion U.S. dollars) by 2025 for digital and green transformation as well as inclusive growth.
South Korean President Moon Jae-in said in a strategic meeting for the so-called South Korean version of the New Deal initiative that the total investment in the initiative by 2025 will be raised to 220 trillion won from the previous 160 trillion won (140 billion U.S. dollars).
Through the investment, Moon said the country will lead the hyper-connected era by integrating new-generational networks and artificial intelligence into all industries and people’s daily lives while promoting low-carbon economic transformation.
In addition to the digital and green projects, the investment will be made in the expanded social safety nets for the inclusive growth during the COVID-19 pandemic era that widened income gaps between haves and have-nots.
The Ministry of Economy and Finance said in a statement that the original version of the initiative, unveiled a year earlier, has accelerated remote work and education, promoted low carbon and eco-friendly manufacturing, and led the transformation into a green and digital economy.
The ministry noted that the upgraded version was required due to internal factors, including the broadened income gap, the faster transition to a digital and green economy, rising concerns among the younger generation about job, income and housing, as well as external factors such as the demand for carbon neutrality.
Under the upgraded version, the government planned to increase investment in human resources development and social security programs, while expanding original products for a digital and green economy. The government expected the initiative to create a total of 2.5 million jobs by 2025.