South Korea’s Finance Minister Announces Big Boost for Economy
In a fresh move to kickstart South Korea’s slowing economy, Finance Minister Koo Yun-cheol revealed plans to pump an extra 7 trillion won—about $5.03 billion—into public institutions by the end of this year. This cash injection aims to spark more investments and get things moving again during tough economic times.
Koo shared these details in his very first press briefing since stepping into the role. Speaking to reporters, he laid out the Ministry of Economy and Finance’s top priorities: tackling economic ups and downs, boosting everyday livelihoods, and keeping consumer prices in check. "We’ll push through this additional 7 trillion won budget via public institutions before the year wraps up," Koo said, according to Yonhap news agency.
A big focus? Taming inflation on essentials like food prices, especially with the Chuseok holiday coming up early next month. That’s South Korea’s major harvest festival, where families stock up big. Koo promised a full holiday support plan soon to stabilize prices and help vulnerable folks. "We’re all about protecting people’s wallets during these celebrations," he added.
Recent numbers from Statistics Korea show some good news on inflation. Consumer prices climbed just 1.7% in August compared to last year—the slowest rise in nine months. But experts warn this slowdown might not last. Without a huge drop in mobile phone fees, inflation would have hit 2.3%—the sharpest jump since July 2024. So, the government stays on high alert to manage South Korea inflation trends.
This announcement lands right after a major shake-up in the government’s structure. Just a day earlier, officials unveiled a restructuring plan that pulls budget planning powers away from the Ministry of Economy and Finance. Instead, a new fiscal agency under the prime minister’s office will handle it.
The bigger picture? Under the new Lee Jae Myung administration, South Korea’s government reorganization finalized on Sunday. It includes scrapping the old Prosecution Service headquarters and splitting its powers into two fresh agencies—one for indictments and one for investigations. The ruling Democratic Party (DP) says this prosecution reform will stop power abuses and end politically driven probes. It’s all part of President Lee’s push for a fairer system.
With these steps, South Korea hopes to steady its economy, control inflation, and build trust in key institutions. Keep an eye out for more updates on how this plays out!
