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13. (...) the small share of foreign supplies remained relatively stable during the review period. Despite the non utilization of price preference schemes, government procurement is still seemingly used as a policy tool for promoting SMEs, companies in a disadvantageous position (firms owned by women or people with disabilities), regional development, and green purchasing. Most procurement remains decentralized.

16. Agriculture accounts for a small share in GDP (2% in 2020), and 5.4% of total employment. (...) Eco friendly agriculture and aquaculture production is encouraged by providing direct payments to certified farms, and by increasing the share of smart fish farm supplies.

17. Korea's fisheries output is increasingly led by aquaculture production in shallow sea areas, whereas fisheries resources in distant and adjacent waters continue to deplete. (...) The Government continues to fight against illegal, unreported, and unregulated (IUU) fishing, and provides domestic support for vessel decommissioning and fisheries resources management. It also continues to promote the development of sustainable fisheries and aquaculture production.

18. (...) Recently, the Government committed to advance energy transition by increasing the share of renewable electricity to 20% by 2030, and to 30% 35% by 2040, and to gradually phase out coal and nuclear from the energy mix. To reach these targets, the Government lowered the consumption tax and import surcharge on liquified natural gas while raising the tax on coal, and enhanced decarbonization across all energy sectors in line with its Green New Deal. (...).

19. Manufacturing is an important and export oriented activity (27.2% of GDP in 2020, 91.4% of total merchandise exports in 2020). (...) Foreign investment in manufacturing in general is allowed. Sector specific measures include those to promote the purchase of eco friendly vehicles and the use of information and communication technology (ICT), and to meet environmental requirements set by international organizations in the shipbuilding industry. In line with the Korean New Deal, ICT's role as an important policy tool to facilitate the development of various sectors, and to meet environmental protection targets has been emphasized. Consequently, public investment in, inter alia, smart agriculture, smart fish farms, digital and green energy infrastructure, and intelligent transport systems increased.

23. International transport for freight is mainly by sea, whereas for passengers is mainly by air. In 2017, a five year plan was launched to restructure the maritime transport sector by, inter alia, building more ultra large container and eco friendly ships, and supporting vessels going green. Measures to reduce marine pollution and enhance marine safety and cybersecurity were also adopted. (...).

2.2. (...) According to the IMF, as at 2021, building on the successful response to the COVID 19 shock (Box 1.1), the priorities for the period ahead would be to nurture the ongoing recovery with additional fiscal and monetary policy accommodation, and solidify the foundations for resilient, greener, and more inclusive medium-term growth.

2.3. (...) Furthermore, the July 2020 Korean New Deal initiative (Sections 1.2.4 and 3.3.1.2.2.2) offers an opportune strategy to develop new growth drivers and achieve greater inclusiveness by increasing public investment in digital and green energy infrastructure.(...)

2.12. During the review period, tax reform in line with policy objectives, including to cope with COVID-19 impact to the economy, was undertaken. (...) The 2018 tax reform included: (...) further rationalization of the overall tax regime (e.g. taxes levied on bituminous coals and natural liquefied gas (LNG) adjusted to their environmental costs). (...).

3.14. Korea's general trade policy objective remains to build a free and open economy. Its policy priorities are: (i) facilitating free and open trade while reinforcing the values of inclusiveness and sustainability; (...).