Choe Sang-mok, Acting President, Deputy Prime Minister, and Minister of Strategy and Finance, noted on the 2nd, "Considering the high level of internal and external uncertainty, we will reexamine the overall economic conditions in the first quarter, including the development of policies by the new U.S. administration and the state of the livelihoods economy, and will devise additional economic reinforcement measures if necessary."
The government held an expanded economic relations ministers' meeting at the Government Complex Seoul in Jongno, Seoul, and announced the finalized '2025 economic policy direction.' Deputy Prime Minister Choe stated, "The government has established the '2025 economic policy direction' with the goal of managing our economy as stably as possible," adding, "Above all, we will focus all efforts on the recovery of the livelihoods economy."
The reason the government has prepared an economic policy direction focusing on economic stability is due to the heightened sense of crisis surrounding the Korean economy. Deputy Prime Minister Choe diagnosed, "This year, our economy is expected to face the greatest internal and external uncertainty, as the inauguration of the new U.S. administration coincides with the domestic political situation," further noting, "As the growth rate declines to around 1.8%, the difficulty of livelihoods intensifies, and concerns about the impact on external credibility arise."
Deputy Prime Minister Choe added, "We will implement an 18 trillion won economic reinforcement package by mobilizing all public resources and pursue an unprecedented scale and speed 'swift livelihoods support' project, ensuring that benefits like senior employment and youth employment incentives are experienced by every citizen from the very beginning of the new year."
Additionally, Deputy Prime Minister Choe said, "We will actively support the recovery of domestic demand such as consumption, construction, and regional economies," further stating, "In particular, we will make every effort to restore consumer sentiment through income tax deductions for additional consumption in the first half of this year and reductions in automobile acquisition taxes."
He continued, "We will further strengthen tailored support for vulnerable groups," noting, "By expanding the support target for the new start fund, enhancing tax support for the small business owners’ retirement pension, and expanding income tax deductions for consumption at small businesses, we will alleviate the burden on small business owners and broaden their revenue base."
Deputy Prime Minister Choe also expressed his commitment to managing external credibility. He noted, "We will proceed without any setbacks with the World Government Bond Index (WGBI) inclusion and the value-up program, offering exceptional cash grants and tax benefits for foreign investment," further adding, "In cases where volatility in the financial and foreign exchange markets expands, we will stabilize the market through bold and swift actions."
Concurrently, he stated, "To address the uncertainty in trade environments such as the inauguration of the new U.S. administration, we will develop a systematic response strategy and also devise ways to fundamentally strengthen industrial competitiveness," highlighting, "We will focus on innovating key industries and discovering new promising industries, and significantly improve the investment conditions for small and medium-sized enterprises through interim investment tax credits and special accelerated depreciation."