Koo Yooncheol: "Additional 7 Trillion Won to Be Injected by Year-End Through Expanded Public Investment"

Koo Yooncheol Outlines Dual Approach of Macro Management and Micro Targeting
7 Trillion Won in Additional Public Investment Planned by Year-End
Government to Prioritize Price Stabilization and Livelihood Support for Chuseok
Expanded Financial Risk Management and New External Economic Strategy Announced
Focus on 15 Ultra-Innovative Projects and Fiscal Structure Reform

On September 8, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Koo Yooncheol stated, "We plan to achieve visible results by pursuing both macro management and micro targeting in parallel." He added, "In particular, we will inject an additional 7 trillion won by the end of the year through expanded public sector investment and changes to fund management plans."

Koo made these remarks during a press conference held at the Government Complex Sejong on this day. This was the first press conference since he took office as Deputy Prime Minister. He outlined his intention to divide tasks into macro and micro areas and to pursue them simultaneously, focusing on delivering concrete outcomes. "If we do not mobilize all available resources and produce results in a short period, the pace of technological change will be too fast for Korea to keep up," he said, signaling a comprehensive response.

In the area of macro management, Koo announced plans to focus on jump-starting economic recovery, stabilizing prices, and restoring livelihoods. With signs of economic recovery becoming more apparent, he explained that the government will seek to expand the recovery by launching the application process for the Win-Win Payback program and distributing a second round of livelihood recovery consumption coupons. In particular, the government will minimize unused and misallocated public funds, and will execute an additional 7 trillion won in budget spending by the end of the year through expanded public sector investment and changes to fund management plans.

Koo also noted that with the Chuseok holiday beginning next month, "price stabilization will be the top priority for people's livelihoods," and he announced plans to soon unveil a "Chuseok Livelihood Measures" package, which will include support for the supply and discounting of holiday goods and assistance for vulnerable groups. As additional livelihood recovery consumption coupons will be distributed ahead of the holiday, the government plans to supply the largest-ever volume of holiday goods.

To manage financial market risks, the government will convene an expanded Macroeconomic and Financial Meeting based on the results of the Federal Open Market Committee (FOMC) meeting on the 18th. In response to fundamental changes in the global trade order, Koo explained that a "New External Economic Strategy" aimed at advancing Korea as an open trading nation will be announced next month.

In the area of micro targeting, the focus will be on detailing 15 leading projects for the ultra-innovative economy. At the upcoming Industrial Competitiveness Enhancement Ministers' Meeting on the 10th, the government will discuss implementation plans and form a task force comprising companies, lead ministries, and related agencies to present project-specific roadmaps by next month. The 15 artificial intelligence (AI) projects will also be rapidly advanced by pooling public and private sector capabilities under the responsibility of each ministry.

The government will also work to support a major economic transformation by innovating the fiscal structure and public institutions. According to Koo, a dedicated task force for fiscal structure innovation, including Second Vice Minister of Economy and Finance Lim Kigeun, will be launched this month, and efforts will be made to reform the evaluation of public institution management. The government also plans to improve regulations in new industries such as autonomous driving by reflecting on-the-ground feedback.