Choo Kyung-ho: "Concerns Over Energy Risk Spread from Israel-Palestine Conflict... Strengthening Financial and Real Economy Monitoring"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho emphasized that the government will make every effort to minimize the economic impact caused by the Israel-Hamas armed conflict and to prevent the worsening of difficulties in the livelihood economy.

On the 19th, during the Ministry of Economy and Finance’s national audit briefing at the National Assembly’s Planning and Finance Committee held at the Government Complex Sejong, Deputy Prime Minister Choo stated, "Depending on how the situation develops, there is a possibility of risk spreading centered on energy and supply chains," adding, "We will maintain heightened vigilance and strengthen 24-hour monitoring of financial and real sectors."

The Ministry of Economy and Finance plans to temporarily extend the fuel tax reduction measures and the oil price-linked subsidy support, which were scheduled to end at the end of October, until the end of the year. It will also strengthen on-site inspections to prevent price hikes exploiting the increased volatility of international oil prices.

Deputy Prime Minister Choo explained, "We will expand the supply volume of kimchi-making items such as cabbage, introduce new tariff quotas on imported fruits and powdered milk, and focus on stabilizing food prices through discount support events for agricultural and marine products."

Policies to stabilize housing for low-income citizens will also be strengthened. Deputy Prime Minister Choo said, "We will faithfully implement the plan to supply 2.7 million housing units over the current government’s five years by ensuring sufficient housing finance supply," adding, "We will provide robust protection for homeless low-income citizens and housing-vulnerable groups by easing housing benefit criteria and reducing housing cost burdens."

Support for revitalizing corporate export activities to recover economic vitality will also be enhanced. He emphasized, "Through export investment policy meetings, all ministries are working as one team to fully support diversification of export items and regions, and we have reinforced support infrastructure by supplying up to 365 trillion won in export and trade finance within this year."

[Image source=Yonhap News]

He further explained, "We will actively support corporate investment expansion through supplying 26 trillion won in facility investment funds in the second half of the year, improving the utilization of temporary investment tax credits, and facility investment tax credits for national strategic technologies," adding, "To revitalize regional economies, we will actively promote support for regional infrastructure and opportunity development zones."

He stressed accelerating innovation in labor, services, finance, and regulations to improve the economic structure. Deputy Prime Minister Choo said, "We will prepare supplementary measures to revise working hours reflecting voices from the field and implement sector- and industry-specific innovation strategies to strengthen the competitiveness of the service industry," adding, "We will reform various regulations that hinder corporate investment and unreasonable economic penalties that burden the public."

The government will steadily pursue major innovation tasks to enhance the efficiency of public institutions and support the utilization of idle and underused state-owned properties by the private sector and local governments to boost economic vitality and regional development.

Support for expanding the foundation for future preparedness will also be strengthened. Deputy Prime Minister Choo stated, "To respond to the population crisis, we will expand financial and tax support for housing, work-childcare balance, and child-rearing," adding, "We will ensure a smooth response to climate change through expanding green finance, revitalizing emissions trading, and promoting energy transition." Finally, he said, "We will also strengthen our economic security by achieving economic diplomacy results with major countries such as the United States and Japan and by expanding the scale of ODA to enhance global solidarity."