Is S. Korea Set to Boost Investments by Over $5 Billion?

Seoul, Sep 8 (NationPress) Finance Minister Koo Yun-cheol announced on Monday that the government intends to infuse an additional 7 trillion won (approximately $5.03 billion) by year-end to stimulate investment from public institutions. This move is part of the broader initiative to rejuvenate the economy during a prolonged slowdown.

Koo shared these insights during his inaugural official press briefing since taking office, where he delineated the ministry's core priorities for macroeconomic management, as reported by Yonhap news agency.

"The government is committed to executing an extra 7 trillion won in budget through public institutions before the year concludes," Koo stated.

He emphasized the ministry's focus on three primary areas: responding to economic cycles, revitalizing livelihoods, and stabilizing consumer prices.

In particular, the minister highlighted the need to control inflation for essential living expenses, such as food prices, especially with the extended Chuseok holiday approaching early next month.

Koo mentioned that a comprehensive holiday support plan will be unveiled soon to ensure price stability and safeguard vulnerable populations.

According to Statistics Korea, consumer prices, a vital inflation indicator, rose by 1.7 percent year-on-year in August, marking the slowest increase in nine months. However, the agency indicated that this moderation might be temporary. The statistics office previously noted that the inflation rate could have hit 2.3 percent in August, representing the most rapid price growth since July 2024, had it not been for a significant decline in mobile phone charges.

Koo's press conference followed a day after the government revealed a significant restructuring plan that would remove the Ministry of Economy and Finance's budget planning authority. A new fiscal agency will be established under the Prime Minister's office to assume this responsibility.

Earlier, a plan to reorganize the government under the Lee Jae Myung administration was finalized on Sunday. This will involve dismantling the current prosecution headquarters and replacing it with new agencies, alongside transferring the finance ministry's budget planning duties.

Confirmed during a meeting of the ruling Democratic Party (DP), the plan includes dissolving the Prosecution Service and creating two new agencies to independently handle the prosecution's indictment and investigative powers.

This initiative is part of Lee's reform efforts aimed at mitigating the potential abuse of power by prosecutors and eliminating politically motivated investigations.