Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il announced on October 6 that the government will swiftly implement five key policy initiatives aimed at stabilizing the economy, reducing polarization, improving the investment environment for businesses, enhancing potential growth rates, managing external risks, and strengthening fair taxation.
During the National Assembly's audit of the Ministry of Finance and Economy, Lee noted that while the Korean economy is experiencing growth due to a global semiconductor boom, it also faces significant uncertainties, including prolonged high oil prices and sectoral polarization. He emphasized the need to address these challenges through the rapid execution of the five policy directions.
Lee identified the stabilization of the economy and the reduction of polarization as the top priority. He stated, "We will work to stabilize prices of essential goods such as oil and food, respond strictly to unfair practices that disrupt prices, and alleviate the cost burden on vulnerable groups."
He also outlined plans to invigorate the economy through three core social policies focused on housing, jobs, and financial support for citizens. In line with the 'Housing Stability Plan' announced last month, the government aims to expedite the supply of 1.19 million housing units and create opportunities for job training and expansion. Additionally, the government will continuously monitor sectors with weak employment, such as manufacturing and construction, to develop tailored responses.
Lee pledged to make every effort to reduce disparities between generations, regions, and businesses, stating, "We will reform support systems, including tax and financial assistance, to promote investment and growth in small and medium-sized enterprises. We will also actively pursue the 'National Land Transformation' policy to ensure balanced growth between metropolitan and regional areas."
He further elaborated on plans to improve the investment environment for businesses and enhance potential growth rates. The government will accelerate the implementation of three major mega-projects and fully support seven SEED projects. Additionally, a fund will be established to strengthen strategic export momentum, and efforts will be renewed to enact the 'Basic Law for Service Industry Development.'
Lee also presented a blueprint for a Korean-style green transformation strategy, the promotion of U.S.-Korea strategic investment projects, and the introduction of a Korean version of a sovereign wealth fund.
To manage external risks and enhance global capabilities, Lee outlined plans to respond to external uncertainties through the introduction of alternative supplies and supply stabilization measures. He emphasized the need to implement the internationalization of the Korean won without delay and proactively strengthen the capacity to respond to external soundness.
He added, "We will actively monitor trade issues such as U.S. tariff measures and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to minimize uncertainties and strengthen economic cooperation through bilateral and multilateral channels with major countries, which can lead to increased overseas orders and exports for our companies."
Lee also expressed a commitment to reforming the tax system to achieve fair taxation, including the rationalization of real estate taxes and the redesign of business inheritance deductions. He announced plans to reallocate functions within public institutions and integrate similar and overlapping functions to reduce costs and address management blind spots in response to complex policy changes such as the AI transformation and regional extinction.
Finally, Lee discussed the strengthening of the Ministry of Finance and Economy's role in coordinating and overseeing economic policy. He stated, "As the deputy ministerial department responsible for overall economic policy coordination, we will enhance communication and collaboration among relevant ministries through economic relations ministerial meetings and economic issue briefings to improve policy speed and momentum."
* This article has been translated by AI.
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