The Presidential Council on National Competitiveness demanded improvements, stating that there has been no progress in venture scale-up and the utilization of artificial intelligence (AI) following the financial authority's report on its activities on the 19th.
The Economic Subcommittee of the National Competitiveness Council discussed the financial authority's activity report along with major current issues and methods for fulfilling commitments in the financial sector at the Sejong Convention Center on the same day.
The activity report discussed methods to alleviate the debt burdens of small business owners and self-employed individuals, in addition to support plans for advanced strategic industries amounting to over 100 trillion won.
Among those attending the activity report were Jeong Tae-ho, head of the Economic Subcommittee, planning members of the Economic Subcommittee, and expert members, while Kwon Dae-young, Secretary-General of the financial authority, and key Director Generals reported.
The National Competitiveness Council examined household debt, real estate project financing (PF), the soundness of financial companies, and responses to supply chain restructuring and tariffs.
They also discussed methods for fulfilling commitments in the financial sector. Opinions were notably exchanged about alleviating the debt burden for small business owners and self-employed individuals reflected in the second supplementary budget. They also discussed support for advanced strategic industries exceeding 100 trillion won aimed at realizing Korea as an AI powerhouse and the role of finance in venture and scientific technology innovation.
The government of Lee Jae-myung plans to create a 100 trillion won 'People's Fund' involving citizens, corporations, pension funds, and state-owned banks to invest in advanced strategic businesses such as AI, biotechnology, and aerospace. The model is to share profits obtained through the fund with the public.
They shared opinions on enhancing trust in capital markets, supporting the formation of national assets, protecting financial consumers, eradicating financial crimes affecting people's livelihoods, and providing financial support in the climate and renewable energy sectors.
Members of the National Competitiveness Council who received the report urged the financial authority to manage the issue with a medium-to-long-term perspective to improve the stability of the economy and finance concerning household debt, real estate PF, and the soundness of the secondary financial sector.
Jeong Tae-ho, head of the Economic Subcommittee, noted, 'The topics of venture scale-up and the utilization of AI and data reported by the financial authority have been discussed since the previous government, but there has still been no significant progress,' and requested, 'The government should develop improvements that are perceivable based on a sober evaluation.'
He also emphasized, 'While there are concerns about moral hazard regarding the alleviation of financial debt burdens for small business owners reported by the financial authority, it should be noted that this is due to the socially distanced measures during COVID-19 and the relatively insufficient role of fiscal policy compared to other countries, and considering the positions of vulnerable small business owners subjected to prolonged debt repayment pressures due to illegal collection, it is indeed something the government must do.'
Regarding the support plans for advanced strategic industries such as AI, he requested, 'Please provide a thorough review of the fund creation and investment plans, and develop methods for advanced industries to grow together with the public through the establishment of the People's Fund.'