The following are key economic policy plans unveiled by the finance ministry on Wednesday for 2016. The measures are centered on fueling the country's growth momentum and reaping the rewards of economic innovation undertaken in the past three years.

▲Economic forecasts

   - Annual growth forecast downgraded from 3.3 percent to 3.1 percent in 2016 to reflect economic uncertainties, and weaker-than-expected growth in global trade that can hurt industrial production, consumption and investment. Growth figures for 2015 marked down from 3.1 percent to 2.7 percent.


   - Job creation to reach 350,000 in the new year, up from
320,000 projected for 2015. Employment figures for people between
15 to 64 to reach 66.3 percent, up from 65.7 percent this year.


   - Current account surplus to hit US$92 billion in 2016 compared to $112 billion in 2015, with inflation to rise to around 1.5 percent from 0.7 percent forecast for this year.

▲Bolster economic vibrancy 

   - Maintain aggressive and flexible macroeconomic policy stance and frontload next year's budget starting in the first quarter to maintain present growth momentum. Increase the amount of state funds to be committed in the January-March period to 125 trillion won ($105.6 billion) from 117 trillion won.


   - Closely manage both real and nominal growth economic rates and adhere to a "policy mix" to ensure real growth rate stands at above 3 percent.


   - Allocate some 3.5 trillion won in state funds for social overhead capital projects even before the start of the 2016 fiscal year that can help create new jobs. Swiftly send money to regional governments so they can expedite the pushing forward of various spending projects that can prop up growth.


   - Get public corporation that have benefited from lower crude and commodities prices, to invest in infrastructure projects and generally get private companies to invest more in SOC.


   - Maintain the current expansionary monetary policy to help shake off low inflation concerns and keep close tabs on the foreign exchange market to guard against sudden volatility.

▲Fuel domestic growth, exports

   - Take active measures to ensure domestic consumption does not lose steam in early 2016 by introducing policies aimed at getting people to spend more and attract foreign tourists. Reform the Terminal Distribution Structure Improvement Act cited for holding up sales of smartphones in the first half.


   - Implement policy measures that can give incentives to the private sector to build 50,000 new rental homes, which can help regulate local housing prices. Ease regulations on arable land so more land can be developed for other uses.


   - Set aside 5 trillion won to promote growth of new industries, such as 5G communication and renewable energy technologies. Push forward policies that can get telecommunication carriers to invest


2.5 trillion won in the first quarter and provide support to develop next generation energy storage systems and smartgrids that can also be exported abroad.


   - Pour some 15 trillion won left in the government's business investment promotion program in 2016, one year ahead of schedule, which can help the creation of new companies and markets.


   - Nudge the National Pension Fund and other state-controlled pensions to diversify investment in the local market that will not only prop up growth but also help create more jobs.


   - Use the free trade agreement with China to attract foreign direct investment into the country. The FTA will not only attract investment from China, but be attractive to foreign companies wanting to make headway into the world's No. 2 economy from South Korea.


   - Increase export-related financial support by 20 trillion won to 271 trillion won, and offer incentives to help local companies wanting to expand abroad. Overhaul existing export policies to better reflect changing times so concentrated assistance can be given to bolstering research and development for cosmetics. More assistance will be given to processed food, products for babies and young children, as well as fashion and clothing sectors.
    
▲Risk management 

   - Stabilize mounting household debt problems by getting people to pay back the principal on their loans in installments. Encourage lenders to revise loan guidelines to better reflect the ability of households to pay back debt.


   - Aggressively prod the country's shipbuilding, steel and shipping businesses to carry out voluntary restructuring programs so they can trim waste, streamline operations and focus on core businesses sectors.


   - Extend the current corporate workout promotion act so companies in trouble can undergo swift workout programs and be placed under court receivership. Draw out the country's so-called fast track support program designed to inject emergency funds into companies till the end of 2016, and offer assistance to both business owners and employees undergoing difficult restructuring processes.


    - Re-evaluate external risk contingency plans from the ground up to fully take into account the rise in U.S. interest rate hikes. Assess from the country's foreign currency liquidity ratio and foreign safe asset holdings that can better insulate the market from external shock.
  
▲Economic innovation reforms

   - Implement labor, financial, public sector reforms and revamp the country's education systems so the general public can feel the benefits of change.


   - Follow through on the tripartite agreement that can add flexibility to South Korea's labor market and make it possible to increase employment of young people.


   - Introduce a "regulation free zone" that can allow local government to remove administrative red tape and attract business investment into future growth industries such as self-driving cars, Internet of Things, sensor technology, renewable energy, biotech, 3D printing and drones.


   - Set up a new industrial strategy that reflects changes in the global value chain and promote growth of future-oriented cutting edge industries.


   - Support both exports and the domestic economy, but gradually focus on expanding the local service industry. Build up the value of Korean culture such as K-Pop and expand its brand power.


   - Make policies that take into account the shift in South Korea's population and consider changing the country's immigration policies and make it possible to attract more foreign talent.

▲Inter-Korean projects 

   - Take steps to provide humanitarian assistance and improve everyday living standards of North Koreans that can help build trust between the two Koreas. 


   - Support projects that can modernize North Korea's medical infrastructure and help the country reorganize its rural communities and forestation efforts.


   - Engage in economic, infrastructure and cultural projects that can strengthen ties and improve business conditions at the Kaesong Industrial Complex.


   - Systematically build up local public and international support for unification, and actively start dialogue on the establishment of a Northeast Asia Development Bank that can help North Korean growth after the country gives up its nuclear program. (Yonhap)