The Korean New Deal, announced in Korean on July 14 2020, plans to invest total 160 trillion won (114.1 trillion won worth of fiscal investment) to create 1,901,000 jobs by 2025. The Korean New Deal aims to transform the economy to make it greener, with more digital services and stronger safety nets, implemented through fiscal support for pump priming and improved regulations to promote the private sector.
Directly related to energy:
Green New Deal: 73.4 trillion won (42.7 trillion won from the Treasury) will be invested. With the aim to strengthen climate action and realize a green economy, investment will focus on green infrastructures, renewable energy, and fostering green industry.
More details include:
Investment of 30.1 trillion won will be made by 2025 to create 387,000 jobs.
- Pursue eco-friendly infrastructure and renewable energy production: Work to achieve the 2030 greenhouse gas emission reduction target and RE3020
- Green transition of infrastructure: Remodel public buildings and schools
- Promote low-carbon and decentralized energy: Build smart grids, and promote distributed energy production and eco-friendly vehicles by expanding supply of electric and hydrogen vehicles
- Promote innovation in green industries: Provide technology development support for environment and energy SMEs, build a green industrial cluster to help with technology development, testing, production and marketing, and create about 215 billion won worth of public-private joint funds to grow green businesses, as well as make 1.9 trillion won worth of loans available for businesses investing in environment protection tools and facilities
- Other parts of three pillars, but not related to energy directly
Digital New Deal: 58.2 trillion won (44.8 trillion won from the Treasury) will be invested. With the aim to accelerate the transition towards a digital economy, investment will focus on the integration of data, network and AI (DNA) throughout the economy.
- Data dam: Increase big data platforms acorss industries, open up public data, and promote industrial convergence between digital contents and 5G
- AI government: Adopt 5G and blockchain technology to public services to make public services 100% digital
- Smart heathcare: Invest in 18 hospitals to equip with 5G and IoT so that they provide real time monitoring and cooperation between medical institutions, and develop softwares to diagnose 12 diseases, such as lung cancer, diabetes etc.
- Digital twins: Create high-resolution 3D maps for the country and build smart management systems for old underground public utilites facilities
- Digital SOC: Adopt C-ITS to major routes, install IoT sensors on railroads and build 4th generation wireless networks for railway
Stronger Safety Net: 28.4 trillion won (26.6 trillion won from the Treasury) will be invested.
- Invest in employment security and social security programs to expand the coverage
- Increase investment in digital and green workforce training programs, improve vocational training programs to adequately equip with skills for the future and expand internet excess in rural areas