Deputy Prime Minister Koo Holds First Press Conference Since Taking Office
Aims for Macro Management and Micro Targeting
Early Revision of Tax Law Enforcement Ordinance Planned for Next Month
The government has announced plans to execute an additional budget of approximately 7 trillion won by the end of the year. A fiscal structure task force (TF), which will discuss issues such as the efficiency of mandatory expenditures, will be launched this month. This TF is expected to present a concrete roadmap within the year.
On September 8, Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol held his first press conference since taking office at the Government Complex Sejong. He stated, "We plan to achieve tangible results by pursuing both short-term macro management and mid- to long-term micro targeting." He also emphasized, "Unless we mobilize all available resources and deliver results in a short period of time, the pace of technological change will be too fast for Korea to keep up," signaling an all-out response.
Deputy Prime Minister Koo outlined plans to focus on jump-starting economic recovery, stabilizing prices, and restoring livelihoods as part of macro management efforts. With signs of economic recovery becoming visible, the government plans to expand the recovery trend by launching the application process for the Win-Win Payback program and distributing the second round of livelihood recovery consumption coupons. The government will begin accepting applications for the second round of livelihood recovery consumption coupons, worth approximately 4.7 trillion won-about 50% of the first round-starting on September 22.
Deputy Prime Minister Koo also announced plans to minimize the carryover and unused funds in central and local education finances, and to expand public institution investments, thereby executing an additional budget of about 7 trillion won by the end of the year compared to the original plan. The annual revision of the tax law enforcement ordinance, which usually takes place in February, will be moved forward and implemented early next month. The revision will include the addition of national strategic technologies and the exclusion of unsold housing after completion from heavy taxation, among other measures.
With the Chuseok holiday approaching next month, Deputy Prime Minister Koo declared, "Stabilizing prices will be the top priority for people's livelihoods," and announced plans to soon unveil the 'Chuseok Livelihood Measures,' which will include expanding the supply of Chuseok holiday goods, providing discount support, and assisting vulnerable groups. He explained, "We will expand the supply of Chuseok holiday goods to a record high and provide the maximum possible discount support within the government's capacity," adding, "We will announce measures to ensure that vulnerable groups do not face difficulties."
In managing financial market risks, where external instability factors remain, an expanded macroeconomic and financial meeting will be held in conjunction with the Federal Open Market Committee (FOMC) meeting on September 18, strengthening cooperation with the Bank of Korea and financial authorities. In response to fundamental changes in the global trade order, the 'New External Economic Strategy' aimed at advancing as an open trading nation will be announced next month. Deputy Prime Minister Koo explained, "Policy strategies to address changes in the external environment are more urgent than ever."
On the micro targeting front, the government will detail 15 leading projects for a super-innovative economy. At the Industrial Competitiveness Enhancement Ministers' Meeting on September 10, implementation plans will be discussed, and a task force comprising companies, lead ministries, and related agencies will be formed to present project-specific roadmaps by next month. Deputy Prime Minister Koo stated, "Once the budget is allocated from November, we will move quickly to ensure immediate implementation from January next year." The 15 artificial intelligence (AI) projects will also be swiftly pursued by mobilizing public and private sector capabilities under the responsibility of each ministry. Other additional issues will be addressed by the pan-government growth strategy TF.
In the mid- to long-term fiscal innovation process, a fiscal structure innovation TF led by Second Vice Minister of Economy and Finance Lim Kigeun will be launched this month. Deputy Prime Minister Koo stated, "We will look for further ways to improve efficiency in mandatory expenditure areas," and added, "We will also review how to stabilize the finances of social insurance, and whether to improve the preliminary feasibility study or private investment systems." Through these discussions, he explained, "We will prepare a concrete roadmap within the year."
Innovation in public institution management evaluations will also be pursued. Deputy Prime Minister Koo stated, "We will prepare a revised manual for the implementation of a super-innovative economy by the end of this month," adding, "We will ensure that public institutions play a leading role in innovation and revise evaluations to prioritize safety." He also plans to improve regulations in new industries such as autonomous driving by reflecting on-site opinions.
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