Koo Yoon-chul: "Housing Supply Plan to Be Announced This Afternoon... Major Shareholder Transfer Tax Decision This Month"

Accelerating Housing Supply: Shift to Groundbreaking-Based Standards
Addressing Key Domestic and International Issues Including Inflation and Tariff Negotiations
Balancing Fiscal Soundness with Expanded R&D Investment

On September 7, Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul stated, "The government's top priority is stabilizing the housing market and ensuring residential stability for the public," adding, "We will announce the housing supply measures this afternoon."

Appearing on KBS's 'Sunday Diagnosis' that morning, Deputy Prime Minister Koo explained, "With the June 27 measures, we have established a plan to manage household debt, and the market has shown some signs of stabilization. However, demand management alone is not sufficient."

He continued, "Until now, supply was announced based on various criteria such as approval and groundbreaking, but this time, we will announce it based on groundbreaking. We will also expedite the post-groundbreaking procedures to ensure that housing is supplied more quickly."

Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul. Photo by Jo Yongjun

Regarding the controversy over the major shareholder criteria for stock transfer income tax, he said, "Corporate growth is essential for economic growth, and my focus is on revitalizing the capital market. I am fully aware of public concerns and will make a decision as soon as possible." When asked if a conclusion could be reached within this month, he replied, "Yes."

On inflation, he stated, "Overall prices are fluctuating around 2%, but there are issues in three sectors: agricultural, livestock, and fisheries products; processed foods; and services and dining out. We will announce comprehensive measures, including Chuseok price stabilization policies and efforts to improve distribution efficiency."

Regarding the recent Korea-US tariff negotiations in Washington, DC, he said, "Howard Lutnick, the US Secretary of Commerce, who had been pressing us, even offered advice to help make the negotiations a success. Building good personal relationships contributed to the final negotiations." He also shared that during a meeting with US President Donald Trump, "President Trump said it was the first time he had met a bureaucrat, rather than a president or prime minister, for tariff negotiations."

Addressing the crackdown on undocumented immigrants at the Hyundai Motor Company-LG Energy Solution joint venture plant in Georgia, he said, "If there is any area where the Ministry of Economy and Finance can contribute, we will actively lend our support."

On fiscal management, Deputy Prime Minister Koo emphasized, "I will not say that the national debt is fine. I am fully aware of public concerns. When preparing next year's budget, I paid the most attention to the fiscal deficit and national debt."

He added, "The President has repeatedly told me to be frugal with the budget. I considered reducing the deficit in the short term and limiting the rate of spending growth, but while the numerator (fiscal deficit) may shrink, the denominator (economic growth) could decrease even more, leading to a vicious cycle of a higher deficit ratio." He went on to say, "We must invest in future core industries such as artificial intelligence (AI) to prevent a decline in potential growth rates."

Regarding the significant increase in the research and development (R&D) budget, he said, "We have allocated ample funds so that there will be no complaints about a lack of money hindering technological development for an ultra-innovative economy." Referring to his time as Budget Director in 2017 and the installation of air conditioners in military barracks, he stated, "I firmly believe that the budget should be spent decisively when necessary and saved rigorously when possible."

He also drew a line regarding the possibility of a third supplementary budget, saying, "There are currently no plans for that."

On the issue of extending the retirement age, he said, "I agree with the direction, but social consensus and public understanding must come first."

Regarding criticism from the business community about regulations on large corporations, he said, "I recognize the problem of stepwise regulations, where the larger the corporation, the more regulations they face, while smaller companies face fewer. We are exploring ways to provide incentives to companies that achieve significant growth, rather than regulating based on company size such as small, medium, or large enterprises."