Ministry of Planning and Ministry of Finance and Economy Launched Separately: "This Year Must Lay the Foundation for Structural Reform"

Im Gi-geun, Acting Minister and Vice Minister of the Ministry of Planning and Budget, is delivering the inaugural address at the plaque ceremony held on the morning of the 2nd at Government Sejong Complex Building 5. (Source: Ministry of Planning and Budget)

The Ministry of Planning and Budget and the Ministry of Finance and Economy, which were separated from the Ministry of Economy and Finance, were officially launched on January 2. The Ministry of Planning and Budget, which had been merged with the Ministry of Finance and Economy into the Ministry of Economy and Finance in 2008, began anew on this day after 18 years.

Both the Ministry of Planning and Budget and the Ministry of Finance and Economy held plaque unveiling and inauguration ceremonies at the Government Sejong Complex on the morning of January 2, officially commencing their work. Im Gigeun, Acting Minister of the Ministry of Planning and Budget, held the first expanded executive meeting after the launch on the 7th floor of the KT&G Sejong Tower, where the temporary office is located. He urged the staff, saying, "More than ever, let us make this year a foundation for structural reform with a sense of extraordinary determination."

Acting Minister Im diagnosed that the Korean economy and society are facing challenges in the short term due to high perceived inflation and global trade uncertainties, and in the medium to long term, are confronted with a complex crisis akin to a perfect storm, where multiple structural risks are overlapping. He identified five major structural risks: industrial competitiveness including the AI-driven industrial transformation that is directly linked to growth potential, low birth rates and aging population, carbon neutrality, polarization, and regional extinction.

He emphasized, "To overcome such a complex crisis, it is important to achieve both growth and welfare, and realize sustainable growth through the establishment of a medium- to long-term national development strategy and responsible, transparent, performance-oriented fiscal management." He also called on the Ministry of Planning and Budget to make special efforts as the dedicated agency for planning the nation's future, to realize a super-innovative economy and a warm, inclusive community.

Under the Office of the Prime Minister, the Ministry of Planning and Budget will be responsible not only for budget formulation and execution, but also for establishing medium- to long-term national development strategies and fiscal management. The ministry will be launched with a structure consisting of one vice minister and three directors-general. In addition to the existing Budget Office and Planning and Coordination Office, a new Future Strategy Planning Office, expanded from the former Future Bureau, will be established. The leadership will comprise the minister, vice minister, and three directors-general (Future Strategy Planning Office, Planning and Coordination Office, and Budget Office). Lee Hyehoon, former Assemblywoman, has been nominated as the first minister and is preparing for a confirmation hearing.

The Ministry of Finance and Economy will be responsible for overall economic policy coordination, currency, foreign exchange, treasury, international finance, taxation, and public institution management. As before, Koo Yooncheol will serve concurrently as Deputy Prime Minister and Minister of Finance and Economy. The ministry will be reorganized into a system with two vice ministers and six directors-general. The existing Treasury Bureau will be expanded into the Treasury Office, and a new Innovation Growth Office will be established to handle AI-driven transformation and super-innovative economic policies. In addition, a new Bureau of Public Welfare Economy will be set up under the Assistant Vice Minister's Office to oversee key public welfare issues such as prices and employment.

In his inaugural address, Deputy Prime Minister Koo stated, "We now face a challenging but essential goal: to rebound our potential growth rate and mark the first year of a great economic leap forward," adding, "Above all, let us become a Ministry of Finance and Economy that is recognized for its policy achievements."