Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il stated on October 1 that "this year, achieving 3% growth and a per capita income of $40,000 is becoming visible," adding that the government will mobilize all available resources and policy tools in the areas of housing, jobs, and financial support for the public to deliver tangible results.
Lee made these remarks while presiding over his first emergency economic headquarters meeting and economic ministers' meeting at the Government Complex in Seoul. He emphasized the need to ensure that the benefits of economic recovery are felt across all sectors of society.
Despite challenging external conditions, including the ongoing conflict in the Middle East, Lee assessed that the economy is on a solid growth path. He projected that exports would reach a record high in September and exceed $1 trillion for the first time annually.
According to government data, cumulative exports reached $765 billion by September 20, surpassing last year's total of $709.3 billion. Lee noted that improvements in investment, consumption, and employment are gradually contributing to growth and income increases.
Regarding the adjustment in industrial activity in August, he attributed it to temporary factors and the base effect from high growth in the first half of the year. He anticipates a rebound in September and believes that the upward trend in the coincident economic index will continue, indicating sustained solid growth.
Looking ahead, Lee outlined the government's economic policy direction, focusing on boosting potential growth rates, stabilizing livelihoods, reducing polarization, and managing macroeconomic risks.
He stated, "Rather than resting on current opportunities, we will accelerate growth and achieve a rebound in potential growth rates," and announced plans for large-scale future investments through three major mega-projects and efforts to resolve business challenges.
In the area of livelihoods, he emphasized the commitment to managing inflation and reducing disparities among regions, industries, and generations. He identified housing, jobs, and financial support for the public as the three key social policy areas where resources and policy tools will be concentrated.
Lee also called for proactive responses to external risks. He noted the conflicting trends arising from the semiconductor boom triggered by the AI revolution and the shifts in major countries' monetary policies due to the Middle East conflict, stating that the government will closely monitor their impacts on the financial and real economies.
During the meeting, discussions were held on support measures for corporate investment, the restructuring of the Onnuri gift certificate program, and support for the Our Child Independence Fund.
The government will expedite the progress of investment projects worth 7.9 trillion won that are currently pending. It plans to shorten the approval process for a 4 trillion won project to convert an internal combustion engine plant in Ulsan to focus on electric vehicles from three years to within one year, and to open a clean hydrogen power generation bidding market this month to promote approximately 3 trillion won in production and generation facility investments.
Improvements to investment-related systems will include allowing integrated bidding for electrical and telecommunications work during semiconductor fab construction and processing change approvals for semiconductor manufacturing cylinder cabinets in bulk.
The Onnuri gift certificate program will be restructured to provide additional refunds when used in traditional markets and local small businesses. In traditional markets, a combined benefit of 10% will be offered through a 5% purchase discount and a 5% consumption refund, while local small businesses will offer an 8% benefit through a 5% purchase discount and a 3% consumption refund.
The government is also moving forward with the establishment of the Our Child Independence Fund to support asset formation for future generations. Lee announced that for children born after September 2023, the government will provide up to 1.2 million won annually until the age of 18, depending on income levels, and will allow additional contributions from parents. Tax exemptions on interest and dividend income generated from dedicated accounts will also be pursued in consultation with the National Assembly.
Additionally, the government plans to swiftly prepare and announce a 'Korean Green Transition (K-GX) Strategy' aimed at decarbonizing major emitting industries and fostering green industries.
* This article has been translated by AI.
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