South Korea’s government announced a bold 7 trillion won plan to stimulate investment from public institutions. Finance Minister Koo Yun-cheol said the move seeks to revive economic activity and strengthen stability in a challenging climate. He highlighted that the additional funds will be executed before the end of the year.
Koo explained that the ministry will focus on three major priorities. These include responding effectively to economic cycles, revitalizing public livelihoods, and keeping consumer prices under control. He noted that swift action can help cushion households from the current economic slowdown while supporting essential growth sectors.
The minister placed particular emphasis on inflation management. Rising food and living costs remain a top concern for households, especially during the upcoming holiday season. To address this, the ministry will announce a comprehensive holiday support package designed to stabilize prices and protect vulnerable groups.
Despite a reported slowdown in inflation, concerns remain about future trends. Consumer prices rose 1.7 percent on-year in August, marking the slowest growth in months. However, officials said the figure would have been higher without a one-off drop in mobile phone fees. Koo stressed that the government cannot ease its focus on price stability.
Alongside this injection plan, the government is advancing a major restructuring of fiscal oversight. A new fiscal agency under the prime minister’s office will manage budget planning. This reform will allow the finance ministry to focus more directly on macroeconomic policies, while the new office ensures transparent fiscal management.
Koo emphasized that South Korea government investment plays a crucial role in economic recovery. He urged public institutions to act quickly in executing their budgets so that the benefits reach citizens faster. He added that efficient implementation will strengthen both growth momentum and public confidence.
The government’s 7 trillion won plan signals an aggressive push to stimulate investment and protect the economy. With continued uncertainty both at home and abroad, the focus remains on supporting households, stabilizing markets, and ensuring balanced growth.
