8th Choo Kyung-ho, Deputy Prime Minister of Economy, Invited to Kwanhun Forum
"Energy Costs Rise Due to Nuclear Phase-Out, Limiting Response Capacity"
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering opening remarks at the Gwanhun Debate held on the 8th at the Press Center in Jung-gu, Seoul.
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the 8th, “Since taking office in May last year, I declared an emergency economic response system with the attitude that I, as the Deputy Prime Minister for Economic Affairs, bear all responsibility for the economy,” adding, “I have been striving to address structural issues to strengthen the foundation by returning to the basics of economic principles while responding to the global complex economic crisis.”
On this day, Deputy Prime Minister Choo attended the Kwanhun Forum held at the Press Center in Jung-gu, Seoul, and in his opening remarks said, “It has been nearly 400 days since the Yoon Suk-yeol administration took office, and looking back, every moment has been a continuous crisis.” This forum was arranged by the Kwanhun Club, a gathering of mid-career journalists, who invited Deputy Prime Minister Choo. It is the first time in nine years that a Deputy Prime Minister for Economic Affairs has attended the Kwanhun Club since Choi Kyung-hwan’s attendance in 2014.
Deputy Prime Minister Choo explained, “Since the outbreak of the Russia-Ukraine war at the end of February last year, raw material prices surged two to three times, causing global inflation to reach its highest level in 30 to 40 years,” adding, “As the United States raised its benchmark interest rate more than tenfold within a year, our economy, which is highly dependent on external factors, faced simultaneous challenges of high inflation, financial instability, and economic slowdown.”
He continued, “The overall foundational strength of our economy and the government’s policy capacity to cope with these challenges rapidly weakened,” pointing out, “With government- and fiscal-led economic management, private sector vitality was greatly suppressed, national debt exceeded 1,000 trillion won, and the surge in real estate prices, rapid increase in household debt, and rising energy generation costs due to nuclear phase-out significantly limited our crisis response capacity.”
Deputy Prime Minister Choo evaluated, “We began by correcting the basic framework of economic management and completely shifted the economic operation policy to be private and market-centered,” adding, “Through regulatory innovation and tax support, we are encouraging corporate investment activation and job creation, while transitioning government fiscal management to a sound fiscal policy and striving for public institution innovation.”
Regarding the current economic situation, he said, “Last month, consumer prices fell to the low 3% range for the first time in 19 months, employment conditions continue at record-high levels, and the financial market shows relatively stable signs, reflecting some achievements,” but also assessed, “Uncertainties still exist throughout the economy, economic slowdown continues, and the livelihood economy remains difficult.”
Nevertheless, he emphasized, “According to leading domestic and international expert institutions, the dominant forecast is that the economy will improve in the second half of the year,” and stated, “The government will do its utmost to ensure that this outlook can be realized.”
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