Choi Sangmok: "Will Flexibly Approach National Assembly Supplementary Budget Talks Based on Fiscal Principles and Prompt Processing"

"Examining the Causes of Sluggish Construction Investment...
Fundamental Measures Needed for Revitalization"

Choi Sangmok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, held a virtual Macroeconomic and Financial Issues Meeting (F4 Meeting) with Lee Changyong, Governor of the Bank of Korea, on the 26th (local time) in Washington, D.C., United States.

This meeting was convened to share information on international financial market trends discussed at the Spring Annual Meetings of the International Monetary Fund (IMF) and the World Bank (WB), as well as each country's responses to U.S. tariff policies, and to discuss the implications for the domestic financial market. The participants noted that although volatility in the domestic financial and foreign exchange markets has somewhat eased recently, uncertainties remain high due to factors such as U.S. tariff policies. They also agreed to closely monitor and respond to market conditions, focusing on the F4 Meeting.

The participants also discussed the first quarter gross domestic product (GDP) growth rate, which declined by 0.2% compared to the previous quarter. They analyzed that, amid delayed recovery in economic sentiment due to increased domestic and external uncertainties, a series of events such as heavy snowfall, cold waves, wildfires, and bridge collapses led to sluggish indicators, particularly in the construction sector. In addition, they agreed to continuously review and discuss various combinations of macroeconomic policies to respond to economic conditions.

Deputy Prime Minister Choi stated, "We recognize the current economic situation as very serious," and added, "If it aligns with the basic fiscal principle of using the people's valuable tax money most effectively and prompt processing is ensured, we will approach the National Assembly's supplementary budget discussions flexibly." He further instructed, "Since construction investment remains sluggish, we will thoroughly examine the causes of the downturn across all sectors?private and public, building and civil engineering?and seek fundamental measures to revitalize the sector."