Choo Kyung-ho: "Export Surplus Expected from October... Sound Fiscal Policy Even if Election Lost"

"Real Estate, Supply Should Increase Where There Is Demand"

Choo Kyung-ho, Deputy Prime Minister for Economy and Minister of Strategy and Finance, forecasted on the 3rd that "from around October, exports will start to turn positive, making the economic recovery trend visible."

Deputy Prime Minister Choo appeared on KBS Sunday Diagnosis that day and said, "The main semiconductor sector will gradually show signs of recovery from September onwards, supporting the economic recovery centered on exports."

He explained, "The growth rate for the first half of the year is 0.9%, and conservatively, the annual growth rate is seen as 1.3%, with most estimates around 1.4 to 1.5%. Simply put, the second half of the year needs to grow about twice as much as the first half to reach those numbers."

Regarding the real estate market, he said, "Recently, real estate prices and household loans have been rising mainly in areas with high demand, such as some parts of Seoul," adding, "Rather than going solely with regulations, increasing supply where there is demand is the shortcut to a soft landing."

He continued, "We are currently establishing real estate supply measures from a mid- to long-term perspective," and said, "By expanding supply to balance demand and supply, the real estate market can stabilize, and housing stability for the middle and lower-income classes can be promoted."

[Image source=Yonhap News]

Regarding next year's budget, he emphasized, "If we become more reckless ahead of the political schedule, we will ultimately pass the burden entirely to our people, especially future younger generations," adding, "With this in mind, we have planned a frugal budget that maintains fiscal soundness, tightens belts, and spends where necessary, carefully taking care of people's livelihoods."

Deputy Prime Minister Choo added, "I believe responsible fiscal management is the way for the political circles and government to gain trust and applause from the people."

Regarding the recent situation in China's real estate market, he said, "Due to the impact of COVID-19, China's economy has not been good, and defaults have begun, but our financial companies have been cautious about China's vulnerabilities, and our investments are minimal, so there will be no direct impact."

However, he added, "The United States accounts for 25% of the global economy as the first economic power, and China accounts for 18% as the second economic power," and said, "If China falters, it could cause significant difficulties for the global economy and our economy as well. We will watch closely."

This content was produced with the assistance of AI translation services.