Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul stated on the 31st, “With the prolongation of the war in the Middle East, volatility in the financial markets has increased,” adding, “We will remain highly vigilant, meticulously monitor the economic situation, and respond in a timely manner.”
Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, is delivering a keynote speech at the Emergency Economic Headquarters Meeting, Economic Ministers’ Meeting, and Special Task Force Meeting on Consumer Price Management held at the Government Seoul Office in Jongno-gu, Seoul, on the 31st. Photo by Yonhap News.
On the 31st, Deputy Prime Minister Koo made these remarks at the Emergency Economic Headquarters Meeting, the Economic Relations Ministers’ Meeting, and the Ministers’ Task Force Meeting on Special Management of Livelihood Prices held at the Government Seoul Building.
However, Deputy Prime Minister Koo assessed that the real economy continues to show solid momentum. He noted that total industrial production in June increased by 2.3% compared to the previous month, marking the largest rise in six years, and that both the consumer sentiment index and the business sentiment index in July are showing improvement. Deputy Prime Minister Koo went on to say, “We will also accelerate economic structural reforms to fundamentally stabilize livelihood conditions and enhance the competitiveness of the corporate ecosystem.”
During the meeting, topics discussed included the introduction of the Korean version of a strategic sovereign wealth fund, measures to strengthen safety against factory fires, and the leap forward plans for ‘Affordable Phone 2.0.’
Deputy Prime Minister Koo stated, “We will establish a strategic investment account within Korea Investment Corporation (KIC), the savings-type sovereign wealth fund, and expand and reorganize KIC into a comprehensive sovereign wealth fund.” He added, “The initial capital will amount to over 20 trillion won, created through contributions such as government-held shares in public institutions and in-kind stock contributions. We will continue to secure additional resources in cooperation with relevant ministries.”
Through the strategic sovereign wealth fund, the plan is to ▲ supply long-term patient capital to domestic strategic industries, ▲ invest in strategic industry infrastructure and overseas supply chain companies to strengthen national competitiveness and economic security, and ▲ share profits from investments with the public through measures such as government dividends.
Deputy Prime Minister Koo said, “We will introduce the amendment to the Korea Investment Corporation Act in August and work closely with the National Assembly to achieve its passage within the year.”
Regarding the measures to strengthen safety against factory fires, he said, “We will create a work environment where workers can feel secure and innovate toward a competitive manufacturing ecosystem.” He added, “A government-wide survey on fire safety will be conducted for more than 190,000 facilities—over a quarter of the approximately 730,000 factories and warehouses nationwide.”
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On the leap forward plans for ‘Affordable Phone 2.0,’ he said, “We will introduce a new business model for affordable phones that provides a variety of plans and services through independent infrastructure and will work to vitalize the affordable phone market.”
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