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, which had been integrated into the Ministry of Economy and Finance along with the Ministry of Finance and Economy in 2008, has now been separated and begins anew after 18 years.

On the morning of the same day, both the Ministry of Planning and the Ministry of Finance and Economy held plaque ceremonies and inauguration events at the Government Sejong Complex, officially commencing their work. Im Gi-geun, Acting Minister of the Ministry of Planning, 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, and urged the members, "More than ever, let us make this year a foundation for structural reform with an extraordinary sense of determination."

Acting Minister Im diagnosed that the Korean economy and society are currently facing challenges such as high perceived inflation and global trade uncertainties in the short term, while in the medium to long term, they are confronted with a complex crisis akin to a perfect storm, where multiple structural risks overlap. He identified five major structural risks: industrial competitiveness including the major transformation toward artificial intelligence (AI), which is directly linked to growth potential; low birth rates and population aging; carbon neutrality; polarization; and the risk of regional extinction.

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

Under the Office of the Prime Minister, the Ministry of Planning will be responsible not only for budget formulation and execution, but also for establishing medium- to long-term national development strategies and managing fiscal policy. It will be launched with one vice minister and three directors-general, with the existing Budget Office and Planning and Coordination Office joined by the newly established Future Strategy Planning Office, which has been expanded from the former Future Bureau. The ministry will be composed of a minister, a vice minister, and three directors-general (for the Future Strategy Planning Office, the Planning and Coordination Office, and the Budget Office). Lee Hyehoon, a former assemblywoman, has been nominated as the first Minister of Planning and is preparing for a confirmation hearing.

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

In his inaugural address, Deputy Prime Minister Koo stated, "We are now faced with a challenging but essential goal: making this year the starting point for a rebound in potential growth rate and a great leap forward for the economy," and added, "Above all, let us make the Ministry of Finance and Economy a ministry that is recognized once again for its policy achievements."