[2022 National Audit] Choo Kyung-ho "Concerns Over Economic Slowdown Expand... Complex Crisis to Persist for Considerable Time"

Ministry of Economy and Finance National Audit... "Price and Livelihood Economy Stability as Top Priority"

[Asia Economy Sejong=Reporter Kwon Haeyoung] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the 4th that "amid rising inflation caused by overseas factors, which is causing difficulties for low-income and vulnerable groups, volatility in the financial and foreign exchange markets is increasing, and concerns about economic slowdown centered on exports and investment are expanding," adding that stabilizing prices and the livelihood economy will be the top policy priority.

At the National Assembly audit held that day, Deputy Prime Minister Choo said, "Recently, our economy is facing a very severe complex economic crisis both domestically and internationally, and there are concerns that this complex crisis situation will persist for a considerable period."

He diagnosed, "Due to the highest level of inflation in 40 years, major countries are continuing high-intensity monetary tightening," and "Globally, financial market volatility and recession concerns are spreading, further heightening global uncertainties." He added, "We will steadily implement various measures to stabilize living prices, which is the greatest difficulty for people's livelihoods," and "We will closely monitor price instability factors such as agricultural product supply and demand and energy price volatility to respond promptly."

He also emphasized macroeconomic and risk management. He said, "We will closely monitor trends in the financial and foreign exchange markets, thoroughly review response measures for all possible scenarios, and operate them proactively and in a timely manner," and "We will thoroughly prepare for structural risks both domestically and internationally, such as stable management of household debt and establishing a supply chain stabilization foundation."

Deputy Prime Minister Choo pointed out structural problems in the economy and society as one of the causes of the recent complex economic crisis, suggesting the need for reform. He stated, "Behind this complex crisis lie structural problems throughout our economy and society that have accumulated over several years, eroding growth potential," and "Due to excessive regulations and an oversized public sector, the private sector's ability to create growth and jobs has weakened, and along with outdated labor and education systems and the accelerating population decline, our economy's potential growth rate is sharply decreasing." He continued, "We will strengthen the vitality and fundamentals of our economy," and "We will boldly and continuously pursue economic regulatory innovation so that corporate freedom and creativity can be fully expressed and the private sector can invest and operate more freely." He also emphasized strong innovation in the public sector.

Deputy Prime Minister Choo concluded, "The complex crisis our economy faces is expected to persist for a considerable time, and structural reform tasks across the economy and society are piled up," and "We will make our best efforts to overcome the crisis of the Korean economy and raise the potential growth rate."