Koo Yoonchul: "Smooth Coordination Despite MOEF Split... Real Estate Tax Policies to Be Approached Cautiously"

"Speed is Crucial for Housing Supply"
Focus on Construction Starts for Implementation
Major Shareholder Transfer Tax:
"In the Process of Gathering Public Opinion"
Consultations with the US to Prevent Recurrence of the Georgia Detention Incident

As the blueprint for organizational restructuring under the Lee Jaemyung administration becomes more concrete, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Koo Yoonchul stated on the 8th, "I have long experience in policy coordination and am well aware of the nature and logic of budgeting," adding, "I will ensure smooth coordination with the soon-to-be-separated Budget Office so there will be no cause for concern."

Deputy Prime Minister Koo made these remarks during his first press briefing since taking office, held at the Government Sejong Complex on this day. The previous day, at a high-level meeting between the ruling party and the government, a restructuring plan was announced to separate the budget function from the Ministry of Economy and Finance and establish a new Planning and Budget Office under the Prime Minister. When asked whether this could raise concerns about decision-making, he responded as above.

Koo Yoonchul, Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance, is holding his first press briefing since taking office on the 8th at the Government Complex Sejong. Ministry of Strategy and Finance

Deputy Prime Minister Koo said, "There are concerns that separating the Budget Office might cause problems in decision-making, but I do not see it that way. Just because the Ministry of Economy and Finance and the Budget Office, which have worked together like family, are separated, it does not mean they are no longer family." He added, "Being apart may reveal new advantages that were not apparent when we were together." He also stated, "I will ensure sufficient communication" and "work to create greater synergy."

Regarding his appearance on KBS the previous day, where he said that the criteria for major shareholder stock transfer taxes would be finalized this month, he replied, "There is nothing more to say." However, he left room for flexibility, saying, "Just because the government has made a decision does not mean it is necessarily correct." He further explained, "We are currently in the process of gathering public opinion."

"Speed is crucial for housing supply... Tax policies will be approached cautiously"

Deputy Prime Minister Koo emphasized the importance of speed regarding the government's recently announced plan to expand housing supply. He explained, "We intend to quickly implement aspects that were previously planned, areas where progress has been delayed due to various permits or regulations, and parts that were planned but not executed, by identifying what can be expedited."

The housing supply expansion plan includes a goal to begin construction on 270,000 new housing units annually in the Seoul metropolitan area by 2030, totaling 1.35 million units. Deputy Prime Minister Koo explained that by setting the supply target based on construction starts, the feasibility of the plan has been enhanced.

He added, "There are concerns that supplying more housing in the metropolitan area could hinder balanced regional development, but the metropolitan area is currently facing a housing shortage. There are also concerns about rising prices, so we are maximizing the supply of already approved units and improving efficiency in urban areas."

He also stated, "If the plan proceeds without setbacks, 1.35 million units could be supplied rapidly. We will focus on accelerating the process so that people without homes can have the opportunity to own one sooner."

When asked if additional real estate-related tax policies might be introduced, he replied, "We need to consider both the June 27 demand-side measures and the supply measures announced yesterday," but added, "We intend to be cautious about using tax policy in the real estate market whenever possible." However, he clarified, "That does not mean we will never implement certain policies 100%. We will review them as needed, considering the real estate situation and the principle of fair burden."

Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul holds his first press briefing since taking office at the Government Sejong Complex on the 8th. Ministry of Economy and Finance

Future Consultations with the US to Prevent Recurrence of Detention Incidents

Regarding the incident in which over 300 Korean employees were detained while on a business trip to Georgia, USA, Deputy Prime Minister Koo said he would explain the situation to the United States. "Since the workers were sent from Korea to complete the construction of a factory, not for employment or sales purposes, I believe that if we explain this properly, the US will either issue new visas or grant an exception," he explained.

He further emphasized, "Communication with the US government is extremely important," and added, "We will ensure close consultations so that such unfortunate incidents do not occur again when Korean companies invest in the United States in the future."

Regarding the establishment of a cooperative fund related to the shipbuilding industry following Korea-US tariff negotiations, he stated, "Working-level negotiations are currently underway, and we will review ways to efficiently promote various projects based on the outcomes." On separate discussions with the US Treasury Department regarding exchange rates, he explained, "Working-level consultations are ongoing, and there have been no major issues so far." He added, "We will make a joint announcement together with the tariff negotiations in the future."

Concerning the upcoming US Supreme Court ruling on tariffs, he stated, "We will consider all possible scenarios and strive to negotiate with the US in a way that maximizes national interest and practical benefits, while also preparing an effective industrial strategy in advance." Regarding concerns about the hollowing out of domestic industries due to the expansion of Korean companies into the US, he responded, "We intend to view this as an opportunity for Korea to play a key role in the global value chain."

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