Emergency Economic Task Force and Fiscal Strategy Meeting Held Together
Ministry of Economy and Finance: "New Government's Economic Growth Strategy to Be Announced Next Month"
The fiscal authorities announced that they will manage fiscal policy with a focus on performance. They also presented a blueprint to build an innovation ecosystem and boost corporate vitality in order to strengthen the nation's growth engines.
The Ministry of Economy and Finance reported and discussed these plans at the 3rd Emergency Economic Task Force meeting, which was chaired by the President on this day. This meeting also served as the annual National Fiscal Strategy Meeting, which reviews the budget formulation for the following year.
At the meeting, the Ministry presented the new government's fiscal management direction, centered on 'performance-oriented fiscal operation,' which involves both strategic fiscal investment and rigorous expenditure restructuring. They discussed ways to operate fiscal policy with the goal of creating a 'virtuous cycle' by boldly investing in sectors that can deliver results, thereby enhancing investment outcomes and productivity, supporting economic recovery and growth, and securing mid- to long-term fiscal sustainability.
In addition, they reported measures to guarantee the fiscal management autonomy of ministries and local governments while enhancing performance and accountability, as well as ways for public institutions and government-funded research institutes to contribute to solving national strategic agendas. The report also included directions for fiscal system innovation to enable swift project implementation, resolve on-site difficulties, and expand private sector participation.
The Ministry also explained the new government’s economic growth strategy, which is necessary to achieve 'genuine growth.' This strategy includes measures to strengthen growth engines by building an innovation ecosystem and enhancing corporate vitality.
Specifically, under the principle of selection and concentration, they proposed to identify specific super-innovation items as targets and mobilize all national capabilities?including R&D, startups, workforce, finance, fiscal policy, and taxation?so that all economic actors collaborate to produce visible outcomes by creating world-leading products and services.
They also reported plans for a comprehensive AI transformation across all sectors, including businesses, the public sector, and the general public. The report included measures to boost corporate vitality, such as improving economic penalties and rationalizing regulations. It also covered plans to expand the foundation for growth through productive finance and fiscal innovation.
They reported strategies to shift from unbalanced growth to balanced development. This included plans for regional balanced development by completely overhauling policy frameworks to favor local areas and overcome the single-centered structure of the Seoul metropolitan area. The report also included measures to overcome polarization, such as promoting coexistence between large and small-to-medium-sized enterprises, strengthening the competitiveness of small business owners, resolving the dual structure of the labor market, and creating a safe working environment.
The Ministry stated, "Based on the contents of this report and the discussions, the new government's economic growth strategy will be finalized and announced next month."
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