Koo made these remarks while presiding over a meeting of the Emergency Economic Headquarters and the Economic and Industrial Competitiveness Enhancement Ministerial Meeting at the Government Seoul Building. He noted that as the Middle East conflict persists, major institutions are revising their growth forecasts for South Korea upward.
The Bank of Korea recently adjusted its GDP growth forecast for this year to 2.6%, an increase of 0.6 percentage points from the previous estimate of 2.0% made in February. The Korea Development Institute (KDI) also raised its growth forecast to 2.5%, up by 0.6 percentage points from its prior projection.
However, the impact of the Middle East conflict has begun to manifest, with declines in industrial production, retail sales, and investment reported last month. According to the National Data Agency's "April Industrial Activity Trends" report, overall industrial production, retail sales, and facility investment fell by 0.6%, 3.6%, and 3.6%, respectively.
In light of these developments, Koo interpreted the situation as a temporary adjustment phase, given the signs of economic recovery.
He emphasized, "The government will do its utmost to minimize the burden on the public caused by high oil prices while injecting new vitality into the economy. We will also extend the current ban on hoarding urea and urea water until July to stabilize supply and demand."
During the meeting, discussions included the response to the Middle East conflict, strategies for re-establishing and promoting return investments, measures to expand fuel costs for farmers and fishermen, innovations in marine safety culture, and support plans for medium-sized shipbuilders.
Koo announced, "Starting today, we will increase the subsidy limit for fuel tax-exempt oil for agricultural and fisheries vehicles, following adjustments made for freight and passenger vehicles. The subsidy will rise from 12.9% to 16.4%, increasing by 36 to 42 won per liter compared to the base price."
He also stated, "We will flexibly assess the similarity of products and services produced overseas to domestic production, considering core technologies and supply chains. We will improve support methods to attract large-scale investments, particularly in regional areas."
Regarding innovations in marine safety culture, Koo mentioned that high-risk vessels will be required to disclose their safety investment records, and a 'Safety Rating System for Shipping Companies' will be introduced for tailored management. He expressed a commitment to expanding opportunities for the public to experience marine safety in their daily lives.
As the global shipbuilding industry experiences a boom, discussions also focused on supporting the issuance of refund guarantees (RG) for medium-sized shipbuilders. Koo concluded, "Based on today's discussions, we will swiftly establish measures for the leap forward of K-shipbuilding and the creation of a healthy industrial ecosystem."
* This article has been translated by AI.
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