South Korea's Ministry of Economy and Finance outlined plans to focus policy capacity on reducing inequality, easing household cost pressures and reversing the slowdown in potential growth. At his first meeting with government research institute heads since taking office, Deputy Prime Minister and Minister of Economy and Finance Lee Hyeong-il also sought research support for interagency policies covering housing, employment and inclusive finance. Participants assessed that economic growth was strengthening, with growth in the 3% range coming into view for the first time in five years and per capita national income increasingly likely to reach USD 40,000. They nevertheless pointed to persistent pressures from higher inflation and interest rates linked to the prolonged Middle East war and monetary policy shifts in major economies, alongside structural challenges from inequality and weaker potential growth. Lee called for the additional policy room created by stronger growth to be directed toward these issues. The ministry plans closer operational coordination with research institutes when developing major policies, including the economic growth strategy. This could include working groups organized around key policy issues.
South Korea's Ministry of Economy and Finance outlines priorities on inequality, living costs and potential growth
South Korea's Ministry of Economy and Finance will prioritize reducing inequality, easing household cost pressures and lifting potential growth. Deputy Prime Minister Lee Hyeong-il sought research institute support for policies on housing, employment and inclusive finance, as well as working groups to help develop the economic growth strategy.