South Korea’s government launched a large investment plan on Tuesday to spend over €83.8 billion (114.1 trillion won) on a “Green New Deal” in order to create jobs and help the economy to recover from the COVID-19 pandemic, according to President Moon Jae-in on Tuesday July 14.
This plan will shift South Korea from being almost entirely dependent on fossil fuels to a more environmentally friendly industry, which will be powered by digital technologies, some of which being electric and hydrogen cars, as well as telemedicine.
During a speech, President Moon stated that these new projects are set to create around 1.9 million jobs in the coming five years.
He stated that he hopes “the Korean-version New Deal will be a new opportunity for those who need jobs.”
He added that this “is the beginning of the grand transformation of the Republic of Korea”, with this being a “starting point for a leap forward to a country to lead the world.”
Through this plan, South Korea aimed to have around 1.13 million electric vehicles as well as 200,000 hydrogen cars by 2025, which is a very large increase from the 91,000 electric vehicles and 5,000 hydrogen cars at the end of 2019.
The government will also be installing several new charging stations, as well as expanding several existing ones.
Apart from this, the plan will also be promoting several remote medical services as well as a work-from-home policy for those businesses and online schools that depend on 5G wireless networks.
There will also be tax breaks for telecom providers that are installing the 5G systems.
Included in this plan, South Korea will be investing €17.761 billion (24.3 trillion won) in order to set up smart grids across the whole country so that electricity will be managed in a more efficient manner.