Economic policy

Yoon’s economic policy direction to be revealed next week

The Ministry of Economy and Finance at the Sejong Government Complex (The Korea Herald)

SEJONG — The country’s finance chief said on Thursday that the Economy and Finance Ministry will unveil the Yoon Suk-yeol administration’s economic policy direction next week, which highlights a deregulation program in for companies as well as measures to control inflation.

During a ministerial meeting at the government complex, Deputy Prime Minister and Finance Minister Choo Kyung-ho commented on the external uncertainty, which involves slowing global economic recovery and projected high inflation around the world, citing the outlook from the Organization for Economic Co-operation and Development. .

“There is a need for (the nation) to make a radical paradigm shift in order to overcome structural crises and foster a virtuous circle of growth and distribution,” he said.

In view of the critical situation, the government is formulating economic policies, which have five main directions, he said. “(Government) will announce them next week after fine-tuning the details (at today’s meeting).”

Choo said the first direction would be a shift towards the private sector-driven economy through drastic deregulations and an overhaul of the tax system, which would create a better business environment.

“The second would be a structural reform of five key sectors – public, labor, education, finance and services – which aims to improve the road of the national economy,” he said.

The minister chose preventive measures against digitalization and demographic change for the third direction, saying it would “provide a foothold for sustainable growth”.

The fourth would be strengthening social security for the poorest and restoring a ladder, which would allow low-income people to become middle or high income earners.

A sustained effort to stabilize consumer prices and household living conditions is proposed as the fifth axis.

Among these five directions, Choo said the lifting regulations will be at the core.

To achieve this, Choo said the government would set up a regulatory overhaul task force, made up of the deputy prime minister and some economy-related ministers, later this month.

“In line with the remarks of the President and the Prime Minister, it is time for a drastic removal of many regulations that affect business activities,” he said.

Citing severe inflationary pressures due to soaring commodity prices, he called on every economy-related ministry to prioritize controlling inflation.

Some of the measures planned to counter the surge in consumer prices include offering discount coupons for agricultural, livestock and fisheries products and offering emergency funds to disadvantaged people.

Korea’s consumer price growth hit 4.8 percent year-on-year in April and 5.4 percent in May, which has become the main negative factor for economic growth as it constrained household spending.

By Kim Yon-se ([email protected])