The South Korean government has drawn up another supplementary budget and tax breaks aimed at creating as many as 220,000 jobs for young people to address stubbornly high youth unemployment.
The 3.9 trillion won (US$3.67 billion) extra budget, to be submitted to the South Korean National Assembly today, would be the second since South Korean President Moon Jae-in took office last year with a vow to create jobs and increase wages.
This time, the spending would be directed primarily at youth unemployment, which the government sees as a developing crisis, and regional economies hit by corporate restructuring.
Of the total, 2.9 trillion won would be used to support small and mid-size companies that hire full-time employees and to subsidize the wages of new hires.
The remaining 1 trillion won would be earmarked for domestic automakers and shipbuilders and their employees, the South Korean Ministry of Strategy and Finance said in a statement.
Unless the problem is addressed, the country might soon face a “catastrophic job crisis,” South Korean Minister of Strategy and Finance Kim Dong-yeon said during a briefing on Tuesday.
The supplementary budget is to come from surplus tax revenue and would not require issuing new government bonds, Kim said.
The youth unemployment rate was 9.8 percent in February, the highest in eight months.
The legislature approved an 11 trillion won supplementary budget in July last year that was aimed at creating tens of thousands of new jobs.
The new extra budget, combined with tax breaks that were to be proposed yesterday, is expected to create about 180,000 to 220,000 new jobs and lower the youth unemployment rate to less than 8 percent by 2021, the ministry said.
The tax breaks would be offered to new hires, low-income youth, start-ups and companies that hire.
Moon’s party is expected to struggle to pass the budget. It took more than a month for the previous extra budget to pass.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Shin Kong Financial Holding Co (新光金控) yesterday said that its insurance unit would adjust its investment portfolio after being banned from buying new stocks a day earlier by the Financial Supervisory Commission (FSC). “We will research what we can do based on the commission’s specific instructions after we receive the regulator’s formal documents,” Shin Kong Financial spokesman Sunny Hsu (徐順鋆) told the Taipei Times by telephone. The commission on Tuesday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$941,722) for reckless investment, and demanded that the insurer reduce its overseas investment ratio from 43 percent to 39 percent. The fine would affect
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
EQUITIES TAIEX moves sharply higher The TAIEX moved sharply higher yesterday as buying focused on Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) after a strong showing by its American Depositary Receipts overnight. However, the gains were capped after the benchmark index breached 13,000 points and ran into technical hurdles, prompting investors to turn cautious, dealers said. At the end of the session, the TAIEX was up 131.11 points, or 1.02 percent, at 12,976.76. Turnover was NT$206.328 billion (US$7.04 billion), with foreign institutional investors buying a net NT$18.47 billion in shares, Taiwan Stock Exchange data showed. TSMC rose 2.92 percent to close at NT$458.