The South Korean government forecasts the economy to expand by two-point-four percent next year, vowing to focus on achieving an economic rebound and raising the country's growth potential to ensure the growth rate.

At an economy-related ministers' meeting led by President Moon Jae-in on Thursday, the government set its 2020 growth outlook at two-point-four percent, citing recoveries in the global economy, the semiconductor industry and domestic demand.

Officials expect the economy to grow two percent this year.

The latest outlook is point-one percentage point higher than those set by the Bank of Korea and the Organization for Economic Cooperation and Development.

To achieve the growth, the government plans to offer tax breaks and subsidies to encourage investment, support 5G-related industries and cut red tape in next-generation growth engines like the biohealth industry.

On-arrival duty free shops will be established at all major airports and domestic lodging expenses will be included in income tax deductions as part of efforts to revitalize domestic demand.