Deputy Prime Minister and Minister of Economy and Finance Ku Yun-cheol said on the 8th, "We will inject an additional 7 trillion won by the end of the year through expanding public sector investment and changing our fund management plan."
He noted during a press briefing held at the Government Sejong Convention Center that "if we cannot achieve results in a short period by mobilizing all available resources, the pace of technological change could be too fast for Korea to keep up." This briefing was the first since Deputy Prime Minister Ku took office.
Deputy Prime Minister Ku stated that he would create results by pursuing macro (big-picture) management alongside micro (specific) targeting.
In terms of macro management, he emphasized a focus on economic recovery and price stability through ▲the commencement of co-prosperity payback applications ▲the second round of people's livelihood recovery consumption coupons ▲and Chuseok livelihood measures. Additionally, the plan is to minimize waste in central and local finances and education budgets, while promoting approximately 7 trillion won in additional public sector investments.
From a financial market risk management perspective, expanded macroeconomic financial meetings will be held based on the results of the Federal Open Market Committee (FOMC) meeting scheduled for the 18th. The 'New External Economic Strategy' for responding to fundamental changes in trade order will be announced next month.
The target areas for micro-targeting are fields that can enhance long-term economic growth potential. The 15 key items for the AI transformation and the 15 major projects for hyper-innovation are included. During the ministerial meeting on industrial competitiveness scheduled for the 10th, implementation plans will be discussed for each ministry, and the roadmap is expected to be finalized by the end of next month, aiming for a budget to be drafted and implemented starting in January next year.
Some amendments to tax law enforcement ordinances will also be expedited. The key contents include ▲adding AI and autonomous driving to national strategic technologies and ▲exemption from heavy taxation on unsold dwellings after completion, with plans to finalize the amendments next month.
Deputy Prime Minister Ku also mentioned that "long-term fiscal innovation is essential," announcing the launch of a fiscal structure innovation task force (TF) within this month. Second Vice Minister Lim Ki-seon will lead the TF, which will review existing mandatory expenditures and consider improvement measures related to feasibility studies and private investments.
He concluded by stating, "We must achieve results in all areas, including the public sector," adding that "the public and private sectors must collectively support to drive a virtuous cycle in the Korean economy, raise the potential growth rate, and do our best to create a great Korea and a happy economy."