Transcription
Chapter 8Strategy for Aligning COVID-19Recovery and Stimulus Measureswith Low-carbon Green Growth inthe Republic of KoreaJootae Kim and Sungjin SonThis Chapter should be cited asKim, J. and S. Son (2022), ‘Strategy for Aligning COVID-19 Recovery ’ in Anbumozhi, V., K.Kalirajan and X. Yao (eds.), Assessing the Impacts of COVID-19: Regional Policies and Practicesfor Green Recovery. Jakarta: ERIA, pp.150-168.
Chapter 8Strategy for Aligning COVID-19Recovery and Stimulus Measureswith Low-carbon Green Growth inthe Republic of KoreaJootae Kim and Sungjin SonDankook University
Chapter 8: Strategy for Aligning COVID-19 Recovery and StimulusMeasures with Low-carbon Green Growth in the Republic of Korea1. Introduction 1522. The COVID-19 Crisis in the Republic of Korea1523. Economic Impact of COVID-191554. Economic Recession and Stimulus Packages1575. Green New Deal Initiative1606. Policy Recommendations 166
152Assessing the Impacts of COVID-19: Regional Policies and Practices for Green Recovery1. IntroductionThe COVID-19 pandemic has beenhaving an enormous impact onhuman life around the world. Thispaper focuses on the impact ofthe COVID-19 pandemic on theeconomic environment of theRepublic of Korea (henceforth,Korea). Although the COVID-19crisis is basically a health issue,it has brought limitations ontransportation and industry outputand these have caused an economicdownturn. Governments havebeen trying various policies toprevent the negative impacts of theCOVID-19 pandemic on nationaleconomies. We summarise howserious the spread of COVID-19and the economic downturn havebeen in Korea and how the Koreangovernment and Korean peopleare trying to minimise disastrousoutcomes from the pandemic.The responses by the Koreangovernment to the COVID-19 crisisconsists of two steps, that is, astimulus package in the short termand a green new deal in long term.2. The COVID-19 Crisis in theRepublic of KoreaIn the first two months of theCOVID-19 pandemic, Korea hadthe second-highest number ofcases of any country, behind onlyChina. Despite this initially highburden from the disease, Koreawas able to dramatically lower theincidence of new cases and sustaina low mortality rate, making it apromising example of a strongnational response. Importantly,Korea achieved this control andmortality rate with a relativelyblunted economic impact giventhe extent of the outbreak whencompared with other Asia-Pacificcountries with a lower early COVID-19burden.We aim to describe the key elements ofKorea’s national response, focusing onmeasures that may have contributedto reducing the surge in incidence(‘flattening the curve’) and minimisingeconomic collapse. The key featuresof the response to date have includedspecific strategies and strong nationalleadership and work to ensure aneffective, coordinated and intersectoralresponse. The strategies have includedthe following (Oh et al., 2020): Early recognition of the threatand rapid activation of nationalresponse protocols led bynational leadership;Rapid establishment ofwidespread diagnostic capacity;Scaling-up of measures forpreventing communitytransmission, including contacttracing, quarantine, andisolation; andRedesigning the triage andtreatment systems andmobilising the necessaryresources for case management.The successful response of Korea inearly 2020 was characterised by therapid implementation of widespreaddiagnostic tests for COVID-19. Afterthe significant increase in confirmedcases in February was stabilised, thenumber of confirmed cases has beencontrolled successfully. Figure 8.1shows the stabilised situation of theCOVID-19 pandemic in the first half of2020 in Korea. This success during thebeginning stage of the pandemic madethe test tools produced in Korea popularworldwide, and the tools were exportedto many countries. Table 8.1 and Table 8.2show that the confirmed cases in Koreahave been relatively small comparedwith other major countries, even in 2021.
Republic of KoreaFigure 8.1 Cumulative Number of Deaths and Confirmed Cases in China,the Republic of Korea, Italy, Spain, and the United States350,000300,000250,000Deaths hinaItalySpainUSKorea, SouthChinaItalySpainUS0Korea, SouthSource: Daily Reports. ster/csse covid 19 data(accessed 6 April 2020).Table 8.1 Comparison of Cumulative Cases Amongst Countries(as of 10 January 2021)CountryCumulative casesUnited States22,137,931India10,450, 284Brazil8,075,998Russia3,344,175United y2,257,866Spain2,050,360Germany1,928,462Republic of Korea68,864Source: Johns Hopkins Covid-19 Resource Center (https://coronavirus.jhu.edu/).Confirmed Cases (lines)10,000153
154Assessing the Impacts of COVID-19: Regional Policies and Practices for Green RecoveryTable 8.2 Confirmed COVID-19 Case Distribution in the Republic of Korea(as of 6 January 2021)Number of 60610094.34.31.9Number of cumulative testsCumulative negative test resultsTesting in progressCumulative confirmed casesUnder isolationDeceasedImported cases8.5Source: Constructed using data from the Korea Control & Prevention Agency (kdca.go.kr/index.es?sid a3).As already explained, earlydiagnosis tests and effectivesocial distancing have allowedthe Korean government to takepride in its successful response tothe COVID-19 pandemic. However,since December 2020, the dramaticincrease in infection numbersand concerns about late vaccinesupplies have caused many Koreanpeople to criticise the government.Social distancing was tightened, andthe government is trying to supply thevaccine as early as possible. The vaccineinjections started in February 2021, andthe medicines for COVID-19 developedin Korea are reported to be suppliedin 2022, too. Figure 8.2 shows that theinfection numbers in Korea increasedgreatly in December 2020.Figure 8.2 Total Confirmed Cases of COVID-19 in the Republic of KoreaReleased from isolation60,000ConfirmedUnder isolation50,00040,00030,00020,00010,00001.20 2.10 2.13 2.25 3.80 3.204.14.13 4.255.75.19 5.316.12 6.247.67.18 7.30 8.11 8.23 9.40 9.16 9.28Source: Korea Disease Control and Prevention Agency (2021).10.20 10.22 11.30 11.15 11.27 12.9 12.21 12.20
Republic of Korea3. Economic Impact of COVID-19The COVID-19 pandemic has hadserious impacts on the economiesof most countries. Many factorieshave been closed and the productionoutput from factories has dropped.The decrease in production outputhas influenced the global productionsystem. For example, in the earlystage of the COVID-19 pandemic,the shutdown of manufacturingplants in China had serious impactson the global value chains for mostmultinational companies. The mostserious impact can be found inindustries related to internationaltravel. Many tourism agencies wentbankrupt, and most internationaltravel by aeroplane was banned.In Korea, two airline companies,Korean Air and Asiana Air, have facedsignificant drops in their sales andprofits.The economic crisis As alreadyexplained, early diagnosis tests andeffective social distancing haveallowed the Korean government totake pride in its successful responseto the COVID-19 pandemic. However,since December 2020, the dramaticincrease in infection numbers andconcerns about late vaccine supplieshave caused many Korean peopleto criticise the government. Socialdistancing was tightened, and thegovernment is trying to supply thevaccine as early as possible. Thevaccine injections started in February2021, and the medicines for COVID-19developed in Korea are reported to besupplied in 2022, too. Figure 8.2 showsthat the infection numbers in Koreaincreased greatly in December 2020.sides. Many industrial bases wereshut down, so the production of manyproducts fell. At the same time, thesignificant decrease in demand inseveral industries became a seriousthreat. The sharp drop in demand forairlines and foreign tours are typicalexamples. Third, less-competitive firms,especially small and medium-sized155enterprises, have not had the capacityto survive this crisis. Sales decreases inthese firms have caused cash shortagesin their management, and this maylead to bankruptcy or bailouts fromthe government. In addition, the badperformance and increased debt formanufacturing companies can spread tothe credit risk in financial institutions.As result, the COVID-19 pandemicwill decrease gross domestic product(GDP) and trade volumes in mostcountries. Tables 8.3 and 8.4 show theforecasts for GDP and trade volumesfor major countries in 2020 and 2021.The international trade volume ispredicted to drop more than 10%. Froma conservative viewpoint, the forecasteddrop in 2020 is about 30%. The figuresaround 2021 are quite positive. However,the report that made these forecastswas published in July 2020. Fromnews reported on 28 September 2020by Naver,1 the largest internet portalin Korea, Bill Gates predicted that thevaccine would be supplied in summer2021, and the pandemic would be over inearly 2022. In this scenario, the economicdownturn would continue even into 2021.The economic growth rate of Korea in2019 was about 2%, and the estimatefor 2020 made in 2019 was also around2%. After the outbreak of the COVID-19pandemic, the growth estimate for2020 was decreased to about -1%. Thisestimate was made in April 2020, andthe estimate reported in September2020 was also between -1.0 and -1.5%.Compared with Western countries, suchas the United States and countries in theEuropean Union, this figure is small. Inthese Western countries, the economicgrowth rates in 2020 are forecast tobe larger than -5%. In preventing boththe spread of COVID-19 and economicrecession, Korea seems to be moresuccessful than major Western html?no 2220121
156Assessing the Impacts of COVID-19: Regional Policies and Practices for Green RecoveryTable 8.3 Expected Change in Trade VolumePastTrade volumePositive viewConservative %ExportsNorth America1-17.123.7-40.919.3South .822.7Asia0.9-13.524.9-36.236.1North America-0.4-14.527.3-33.829.5South -0.6-11.823.1-31.525.1ImportsEuropeAsiaSource: Samjung KPMG Economic Research Institute able 8.4 GDP Forecast for Major Countries(%)Growth rateRevised forecast (Dec 2020)Original forecast (Jan 2020)20192020202120202021Rep. of Korea2.0-1.12.82.2N/AUnited .5Source: Samjung KPMG Economic Research Institute (https://home.kpmg/kr/ko/home/services/eri.html); OECD data (https://www.oecd.org/coronavirus/en).
Republic of Korea4. Economic Recession andStimulus PackagesThe International Monetary Fund(IMF) predicted in June, 2020 that theworld economic growth rate would be-4.9% in 2020. This figure was lowerthan the IMF’s forecast in April 2020 of-3.0%. The Organisation for EconomicCo-operation and Development (OECD)also reported in June,2020 that thegrowth rate of 2020 would be -6.0%.The world economic crisis comingfrom COVID-19 can be found in manyareas (Health Focus News, 2020).- The rapid decrease in consumptionoriginates from closed borders andairports, limited mobility, closedschools, and reduced social credit.- Consumption decreases andincreased market uncertaintyhave made companies drop theirinvestments.- In many companies in which salesamount and profit levels havedropped, large layoffs have beenmade. Unemployment levels havebecome higher and governmentshave had to pay unemploymentcompensation.- The size of trade in the worldhas dropped significantly, andexporting companies havefaced challenging businessenvironments.The negative impact on theeconomy has been huge, as isthe same in most countries.Interestingly, the impact ofCOVID-19 is different acrossindustries. Some industries wereseverely threatened, and significantlayoffs or no-payment breaksoccurred in many corporations. Incontrast, in some industries, salesincreased significantly, and firmsobtained remarkable performance.From a report by Hana EconomicResearch Institute (2020) in Korea,industries can be divided into fourcategories based on the impact fromCOVID-19.Table 8.5 Impact of COVID-19 on Various Industries in the Republic of KoreaImpactIndustriesLarge negative impactTheatres, theme parks, duty-free stores, airlines, tour agencies, hotelsSmall negative impactFitness centres, public saunas, karaoke, bars, departmentstores, large discount stores, wedding services, express buses,rail servicesSmall positive impactCosmetics, electric vehicle charge stations, furniture, interior,liquor stores, supermarkets (vegetables, meat, fish), bicyclesLarge positive impactCable TV, online shopping and delivery servicesSource: Hana Economic Research Institute (2020).157
158Assessing the Impacts of COVID-19: Regional Policies and Practices for Green RecoveryTo respond to the world economiccrisis, most countries suppliedstimulus packages to support theirfirms, workers, and consumersfacing financial difficulties. Thestimulus packages comprise fiscalsubsidies or liquidity support, such as taxreductions, loans from public banks, andcredit guarantees. Table 8.6 shows howmuch major countries’ carried out suchfinancial support.Table 8.6 Size of Stimulus Packages in Major Countries(support amount as a share of GDP)Fiscal subsidyLiquidity supportUnited States12.3%2.6%Japan11.3%24.05Germany9.4%31.5%Rep. of Korea3.1%9.7%Source: Health Focus News (2020).The average stimulus package ratiosin G20 countries are 5.8% for fiscalsubsidies and 6.4% for liquiditysupport.Korea launched economictemporary stimulus packages toboost the domestic market andexport industries amid the falloutof COVID-19. There were ninetemporary stimulus packages as of30 April 2020 (see Table 8.7). Thispackage was the first attempt bythe Korean government, and thesecond emergency relief grant wasoffered in early October. Whilst thefirst grant was made to all Koreanpeople, the second grant was made onlyto vulnerable people. The third grantwas offered in January 2021 and thisgrant was made to micro businesses thatwere seriously damaged by COVID-19.The fourth relief grant was paid in April2021. Most of the government’s planswere focused on injecting liquidity tostalled areas. Specifically, as for thedomestic market, the governmentcame up with extensive plans, such astemporary stimulus payments, temporarypaid leave and family medical leave,temporary emergency welfare support,and temporary employment assistancefunds, etc. to boost prepayments to helpthe people.
Republic of KoreaTable 8.7 Emergency Relief Grants in the Republic of Korea (as of July 2020)StrategyContentEmergencyPlan to provide stimulus payment (cheque, cash,cash deposit to credit card) to all Korean people.Stimulus cheque for small businesses withdecreased salesPlan to provide stimulus cheque to small businessowners who had to reluctantly shut down due tothe incidence of a confirmed COVID-19 case.Paid leave and family medical leave subsidyPlan to provide paid leave and family medicalleave to workers who have family membersinfected by COVID-19.Emergency welfare subsidyPlan to provide emergency welfare supportto households experiencing difficulty due toCOVID-19.Unemployment assistance fundPlan to provide unemployment assistance fundfor workers who, to maintain employment, reducemore than 20% of their total working hours orleave work for more than 1 month.Paid leave and family medical leave forbusiness ownersPlan to provide subsidy to business owners whoprovided paid leave and family medical leave toemployees who have to care for their families dueto COVID-19.Living expenses subsidy for isolated patientsPlan to provide living expenses subsidy toconfirmed quarantine patients not taking paidleave.Subsidy for freelance workersPlan to provide subsidy to freelance workers wholost their jobs due to COVID-19.Living expenses subsidy for workers who areon unpaid leavePlan to provide temporary living expenses subsidyto workers who are on unpaid leave due toCOVID-19.Source: Central Disaster Management Center, Republic of Korea (http://ncov.mohw.go.kr/en/).One interesting question is howmuch the stimulus efforts in acountry are related to green policy.From Vivid Economics (2020), Figure8.3 shows how much stimulusprogrammes contributed to thegreening of the economy. In this figure,the green bars represent positivecontributions, and the red bars meannegative contributions. The greenperformance of stimulus programmesin Korea is relatively good.159
160Assessing the Impacts of COVID-19: Regional Policies and Practices for Green RecoveryFigure 8.3 Greenness of Stimulus e ContributionNegative ContributionIndexSource: Vivid Economics (2020).5. Green New Deal InitiativeKorea achieved high economicgrowth since it began its economicdevelopment in the 1960s. Thecountry experienced a national crisisand economic downturn causedby the IMF financial crisis in 1997.The Korean economy entered thematurity stage after overcomingthe IMF financial crisis throughrestructuring of the economy andthe business system. After enteringthe maturity stage of the economy,the high growth rate trend stopped,and the social polarisation emergingfrom income inequality, realestate fluctuations, and economicdisplacements started to becomeworse. Recently, Korea has beenfacing an economic downturn andemployment instability due to theprocess of strict economic lockdownduring the COVID-19 pandemic.The pandemic has brought aboutchanges in the overall economic andsocial structure, and the transitionto online business models, digitaltransformation, and the greeneconomy is being accelerated. It isgenerally agreed that the recoveryprogrammes and economic reformplans adopted by the government willdetermine the status of the economyafter the pandemic. As a plan to buildthe green economy, President Moonannounced the Korean-style GreenNew Deal Initiative in July 2020.According to the announcement, theframework for the Korean Green NewDeal can be illustrated as shown inFigure 8.4.
Republic of KoreaFigure 8.4 Framework for the Green New Deal in the Republic of KoreaKorean New DealGoalsTransform the economy froma fast follower to a leader,from a carbon-dependenteconomy to a green economy,with the society going to amore inclusive one2 1 PoliciesDigital New Deal and Green New Deal (2)Stronger safety nets (1)10 ProjectsData damAl governmentSmart healthcare InfrastructureGreen and smart schoolsDigital twinsDigital SOCSmart and green industrial complexesGreen remodelingGreen energyEco-friendly vehiclesSource: Ministry of Economy and Finance, Republic of Korea (2020).The goal of the Korean-style NewDeal is to transform the economyfrom a fast follower to a leader andfrom a carbon-dependent economyto a green economy, with a moreinclusive society. The Korean NewDeal includes ‘2 1 policies’, and ‘10major projects’ out of a total of 28. TheGovernment of Korea is actively goingto implement 2 1 policies towardsa digital and green economy (2), aswell as strengthened social safetynetworks (1).1) Major projectsThe major projects are the three typesof policy: Digital New Deal, Green NewDeal, and stronger safety nets.a. Digital New DealThe Digital New Deal is aboutpreparing for surging demand forremote services and paving the way toa digital economy, through which theeconomy will increase its dynamism.The Digital New Deal has six strategiesas shown in Table 8.8.161
162Assessing the Impacts of COVID-19: Regional Policies and Practices for Green RecoveryTable 8.8 Implementing Strategies and Content for the Digital New DealStrategyContentCreate industrial convergencewith data, networks, and artificialintelligence (AI) across the economyMake data open to the public and build big data platforms,promote 5G-AI industrial convergence, launch a smartgovernment based on 5G and AI.Make education infrastructuredigitalBuild digital learning infrastructure in primary andsecondary schools, promote online classes for collegeeducation and job training.Promote ‘non-contact’ industriesBuild 18 smart hospitals to provide remote healthcareservices, provide digital caring services for seniors andother vulnerable groups in terms of health, help SMEsjointly set up virtual conference rooms, and provide smallbusinesses with support for online sales.Make social infrastructure digitalIntroduce digital management systems to the four majorSOC areas of transportation, underground structures(digital twins), water management, and disaster response.Make cities and industrial complexes Build smart cities and smart industrial complexes.digitalMake logistics digitalBuild smart logistics centres, including those near ports,and build online platforms for farm product transactions.Source: Ministry of Economy and Finance, Republic of Korea (2020).b. Green New DealThe Green New Deal is aboutpursuing a low-carbon and ecofriendly economy, such as by buildingeco-friendly energy infrastructure,including a ‘green energy dam’,and working to make the country’seco-friendly industries the mostcompetitive in the world market, suchas eco-friendly vehicles, renewableenergy generation, and othertechnologies. The Green New Deal hasfour strategies as shown in Table 8.9.
Republic of KoreaTable 8.9 Implementing Strategies and Content for the Digital New DealStrategyContentPursue eco-friendly infrastructure andrenewable energy productionWork to achieve the 2030 greenhouse gas emissionreduction target and RE30203.*Green transition of infrastructureRemodel public buildings and schools.Promote low-carbon and decentralisedenergyBuild smart grids and promote distributed energyproduction and eco-friendly vehicles.Promote innovation in green industriesProvide technology development support for environment and energy SMEs, build a green industrial cluster to help with technology development,testing, production and marketing, and create aboutW215 billion worth of public-private joint funds togrow green businesses, as well as make W1.9 trillionworth of loans available for businesses investing inenvironmental protection tools and facilities.* Initiative to reach 20% renewable energy production by 2030.Source: Ministry of Economy and Finance, Republic of Korea (2020).c. Stronger safety netsStronger safety nets are about reducingincome inequality amongst workers,expanding social securities and jobsecurities, and improving educationand vocational training programs for asuccessful digital and green transition.Stronger safety nets have two strategies,as shown in Table 8.10.Table 8.10 Implementing Strategies and Content for the Digital New DealStrategyContentPursue eco-friendly infrastructure andrenewable energy productionInvest in employment security and social securityprogrammes to expand coverage.Green transition of infrastructureIncrease investment in digital and green workforcetraining programmes, improve vocational trainingprogrammes to adequately equip trainees withskills for the future, and expand internet excess inrural areas.Source: Ministry of Economy and Finance, Republic of Korea (2020).2) Ten major projectsThe government has chosen 10 majorprojects out of a total of 28 projects(12 for the Digital New Deal, 8 for theGreen New Deal, and 8 for social safetynets) through close cooperation withthe Office of the President and theprivate sector. The 10 tasks have beenselected as those that will likely createnew markets and more jobs and havea larger impact on the real economy(see Table 8.11). The Digital New Dealconsists of three projects: a data dam,AI government, and smart healthcareinfrastructure. Digital-green industrialconvergence has four projects (greenand smart schools, digital twins, digitalSOC, and smart and green industrialcomplexes), and the Green New Deal hasthree projects (green remodelling, greenenergy, and eco-friendly vehicles).163
164Assessing the Impacts of COVID-19: Regional Policies and Practices for Green RecoveryTable 8.11 Ten Major Projects of the Korean New DealDigital New Deal- Data dam- AI government- Smart healthcare infrastructureDigital-green industrial convergence- Green and smart schools- Digital twins- Digital SOC- Smart and green industrial complexesGreen New Deal- Green remodelling- Green energy- Eco-friendly vehiclesSource: Ministry of Economy and Finance, Republic of Korea (2020).3) Investment plans and majorprojectsTable 8.12 presents the investmentplan for the 10 major projects. Asshown in Table 8.12, by 2022, a totalof W43.4 trillion (W29.5trillion fromfiscal investment) will be spent onthe 10 projects, and 516,000 jobs areexpected to be created. By 2025, a totalof W100.9 trillion (accumulative, W68.7trillion from fiscal investment) will bespent and 1,111,000 jobs are expected tobe created.Table 8.11 Ten Major Projects of the Korean New DealTotal investmentDigital New Deal(3 projects)(fiscal investment)trillion WJobs Data dam8.5 (7.1)18.1 (15.5)389AI government2.5 (2.5)9.7 (9.7)91Smart healthcare0.1 (0.1)0.2 (0.1)2Total investmentDigital-Green IndustrialConvergence (4 projects)(fiscal investment)trillion WJobs Green and smart schools5.3 (1.1)15.3 (3.4)124Digital twins0.5 (0.5)1.8 (1.5)16Make SOC digital8.2 (5.5)14.8 (10.0)143Smart and green industrialcomplexes2.1 (1.6)4.0 (3.2)33
Republic of KoreaTotal investment(fiscal investment)Green New Deal(3 projects)trillion WJobs Green remodelling3.1 (1.8)5.4 (3.0)124Green energy production4.5 (3.7)11.3 (9.238Eco-friendly vehicles8.6 (5.6)20.3 (13.1)15143.4 (29.5)100.9 (68.7)1,110Total(10 projects)Source: Ministry of Economy and Finance, Republic of Korea (2020).Specifically, first, for the data dam,the government will invest a total ofW8.5 trillion (W7.1 trillion from fiscalinvestment) by 2022 and 207,000jobs are expected to be created. By2025, a total of W18.1 trillion (W15.5trillion from fiscal investment)will be invested and 389,000 jobswill be created. Second, for the AIgovernment, the government willinvest W2.5 trillion by 2022, withas many as 23,000 jobs expectedto be created, and W9.7 trillion by2025, with 91,000 jobs expectedto be created. Third, for smarthealthcare, a total of W0.1 trillion(W0.1 trillion from fiscal investment)will be invested by 2022, creating1,000 jobs, and by 2025, a total ofW0.2 trillion (W0.1 trillion fromfiscal investment) will be invested,creating 2,000 jobs. Fourthly, forgreen and smart schools, a total ofW5.3 trillion (W1.1 trillion from fiscalinvestment) will be invested by 2022,creating 42,000 jobs, and by 2025 atotal of W15.3 trillion (W3.4 trillionfrom fiscal investment) will beinvested, creating 124,000 jobs. Fifth,for digital twins, the governmentwill invest W0.5 trillion by 2022and 5,000 jobs are expected to becreated, and a total of W1.8 trillion(W1.5 trillion from fiscal investment)will be invested by 2025, creating16,000 jobs. Sixth, for the digital SOC,a total of W8.2 trillion (W5.5 trillionfrom fiscal investment) will be investedby 2022, creating 73,000 jobs, and by2025 a total of W14.8 trillion (W10.0trillion from fiscal investment) willbe invested, creating 143,000 jobs.Seventh, for smart and green industrialcomplexes, a total of W2.1 trillion(W1.6 trillion from fiscal investment)will be invested, creating 17,000 jobs,and by 2025, a total of W4.0 trillion(W3.2 trillion from fiscal investment)will be invested, creating 33,000 jobs.Eighth, for green remodelling, a totalof W3.1 trillion will be invested (W1.8trillion from fiscal investment) by 2022,creating 78,000 jobs, and by 2025 a totalof W5.4 trillion (W3.0 trillion from fiscalinvestment) will be invested, creating124,000 jobs. Ninth, for green energy, atotal of W4.5 trillion (W3.7 trillion fromfiscal investment) will be invested by2022, creating 16,000 jobs, and by 2025,a total of W11.3 trillion (W9.2 trillionfrom fiscal investment) will be invested,creating 38,000 jobs. Tenth, for ecofriendly mobility of the future, a totalof W8.6 trillion (W5.6 trillion fromfiscal investment) will be invested by2022, creating 52,000 jobs, and by 2025,a total of W20.3 trillion (W13.1 trillionfrom fiscal investment) will be invested,creating 151,000 jobs.165
166Assessing the Impacts of COVID-19: Regional Policies and Practices for Green Recovery4) Expected outcomesThe goal of the Korean governmentis to build a smart country, a greencountry, and a safe country with theseinvestments.First, the government expects thatsmart industries, a smart government,and smart cities will be built throughthe investments for a smart country.Specifically, for smart industries, atotal of W43 trillion worth of datamarkets are expected to be created,and 18 smart hospitals will be inservice with up to 40% of work doneremotely. For the smart government,80% of public services will becomedigital, and the government willuse cloud computing by 100%. Andfor smart cities, there
Recovery and Stimulus Measures with Low-carbon Green Growth in the Republic of Korea Jootae Kim and Sungjin Son This Chapter should be cited as Kim, J. and S. Son (2022), 'Strategy for Aligning COVID-19 Recovery ' in Anbumozhi, V., K. Kalirajan and X. Yao (eds.), Assessing the Impacts of COVID-19: Regional Policies and Practices
