Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol stated that the government has achieved visible results in economic recovery as it marks its first year in office, while emphasizing the need for vigilance regarding the cost of living and volatility in financial and foreign exchange markets.
During an emergency economic meeting held at the Government Seoul Complex on June 5, Koo noted, "Despite challenging conditions such as the Middle Eastern conflict, the combined efforts of the public, businesses, and the government have led to tangible results in economic recovery."
He highlighted the recent upward revision of South Korea's growth forecast by the Organization for Economic Cooperation and Development (OECD), which increased the projection from 1.7% to 2.6%, while lowering the global growth forecast from 2.9% to 2.8%. Koo attributed this positive outlook to strong exports, particularly in semiconductors, and the effects of the supplementary budget, stating, "The recovery in consumption is expected to continue."
Koo also emphasized improvements in fiscal soundness, mentioning that the OECD has revised its forecast for the general government debt-to-GDP ratio down from 52.0% to 48.2% for this year, and from 55.0% to 50.2% for next year. He remarked, "The expansion of productive fiscal policies is creating a virtuous cycle that enhances fiscal sustainability."
He reported that South Korea's current account surplus reached $28.29 billion in April, exceeding $20 billion for three consecutive months, and the cumulative current account surplus for January to April hit a record $102.67 billion.
However, Koo acknowledged that despite improvements in economic indicators, challenges remain for the public economy. He stated, "We are particularly vigilant in responding to the increased volatility in financial and foreign exchange markets and the difficulties faced by the public regarding living costs," adding that the government will strengthen its support for the economy, which is struggling due to the impact of the Middle Eastern conflict.
Koo also announced plans to actively pursue structural innovations for a significant economic leap, stating, "We will accelerate efforts to promote an ultra-innovative economy, expand regional investments, and address structural challenges such as reform and polarization facing our economy."
During the meeting, the government discussed comprehensive safety management measures for the agricultural and forestry sectors and expedited plans for the seventh regional revitalization investment fund project. They agreed to swiftly proceed with related procedures, including exempting local financial investment reviews for the construction of an advanced data center in Jangseong, Jeollanam-do, estimated at around 400 billion won.
* This article has been translated by AI.
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