The Korean New Deal is expected to be President Moon Jae-in’s key policy throughout the final 18 months of his presidency. The ₩160 trillion (A$200 billion) policy aims to drive economic growth and job creation through investment in green and digital sectors as well as by strengthening the employment safety net.
Private investment will contribute ₩60 trillion (A$75 billion), but some analysts think the private sector should provide additional funds to ensure projects are sustainable and efficient.
“We remain cautious, mainly due to the uncertainties around the profitability and sustainability of these projects, which are critical factors to induce private-sector participation,” said Marie Kim, Vice-President and Chief Economist for Citi in Korea.
“Relaxing the government’s heavy regulation is key, and utilising well the efficiency of the private sector is also important for the ultimate success of the plan.”
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