Koo Yoon-chul: "Korea's Economic Future Could Be Bleak Without a Rebound in Potential Growth Rate"

National Assembly Strategy and Finance Committee Audit of the Ministry of Economy and Finance
"Focusing on Stabilizing the Livelihood Economy and AI-Driven Transformation"

Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul stated on the 13th, "If we fail to leverage the momentum of economic recovery to achieve a rebound in our potential growth rate, the future of the Korean economy could become bleak."

In his opening remarks at the National Assembly's Strategy and Finance Committee audit of the Ministry of Economy and Finance held that day, Deputy Prime Minister Koo said, "Our economy now stands at a critical turning point," expressing these concerns.

He continued, "Since the launch of the new administration, we have swiftly implemented economic growth strategies, price stabilization measures, and policies to boost consumption, and as a result, we are beginning to see signs of positive change." He emphasized, "We will focus on expanding our economy's growth potential through an AI-driven transformation and a super-innovative economy, ensuring that the benefits of economic recovery are felt in the daily lives of our people."

Deputy Prime Minister Koo explained that going forward, the government will focus on four key areas: ▲ economic recovery and stabilization of people's livelihoods ▲ advancing the AI-driven transformation and super-innovative economy ▲ managing external economic risks ▲ and innovating the fiscal and public sectors.

He said, "We will expand the momentum for consumption recovery through the second round of consumption coupons and nationwide discount festivals, and support domestic demand by strengthening construction investment centered on regional areas and by swiftly executing supplementary budgets." He stressed, "We will also work to alleviate the burden of living costs such as food, energy, transportation, and communication, and ensure a balanced management of supply and demand in the real estate market."

He also announced plans to enhance growth potential through the AI-driven transformation and super-innovative economy. Deputy Prime Minister Koo stated, "Amid rapidly changing global technology paradigms, we will focus financial, tax, and fiscal support on 30 leading projects for AI transformation and a super-innovative economy, so that Korea can develop 'world-class products and services.'"

To this end, the government will establish a National Growth Fund worth 150 trillion won to invest across advanced strategic industries, promote the transition of core industries such as petrochemicals and steel to high value-added sectors, and drive innovation in AI-based manufacturing processes. Additionally, the government will channel market funds into productive sectors to further vitalize the capital market, and will seek to enhance corporate vitality through regulatory innovation and rationalization of economic penalties.

Deputy Prime Minister Koo Yoon-chul Speaking at the Economic Ministers' Meeting
(Seoul=Yonhap News) Reporter Yoon Dong-jin = Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul is speaking at the Economic Ministers' Meeting held at the Government Complex Seoul on October 2, 2025. mon@yna.co.kr (End)

Management of external economic risks will also be strengthened. Deputy Prime Minister Koo stated, "Based on the principle of prioritizing national interests, we will implement follow-up measures to the tariff negotiations with the United States, conduct impact analyses on domestic industries, and devise ways for our companies to create new opportunities." He added, "We will establish a roadmap for inclusion in the Morgan Stanley Capital International (MSCI) developed markets index within this year, and actively utilize multilateral cooperation platforms such as the Asia-Pacific Economic Cooperation (APEC) meeting at the end of this month to strengthen our economic diplomacy."

He further noted, "According to the revised tax revenue forecast last month, this year's tax revenue is projected to reach 369.9 trillion won, an increase of 33.4 trillion won compared to the previous year," adding, "We will continue to improve systems to enhance the objectivity and transparency of tax revenue forecasts."

Deputy Prime Minister Koo concluded, "The government will not miss this opportunity and will concentrate all policy capabilities to ensure that the economy can take another leap forward." He requested, "We ask for your cooperation so that key economic issues, such as the tax law revision bill, next year's budget proposal, and major legislative tasks, can be handled in a timely manner during the regular session of the National Assembly."

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