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| Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, right, presides over an economy-related ministerial meeting at Government Complex Sejong, Thursday. Yonhap |
New economic roadmap to be unveiled next week
By Yi Whan-woo
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho underscored the need for a "drastic paradigm shift in economic policy," Thursday, as the government is buckling down to stimulate a market-driven economy, with the aim of overcoming the structural crisis of low growth and polarization, as promised by President Yoon Suk-yeol.
Choo said he will launch a special task force later this month for economy-related ministers to get together and come up with innovative measures to achieve a regulatory overhaul.
Choo's remark came as the job is getting trickier for Yoon's economic team to juggle both growth and inflation effectively a month after the new government was launched, as witnessed by the string of downgraded GDP forecasts and the sharply raised inflation outlook for Korea.
Those risks make the reorganization of difficult and complex regulations more critical, as the Yoon administration puts the private sector at the core of its path for economic recovery.
"The problems of the decline in growth potential and the market's weakened role in the distribution of wealth are becoming chronic, as we face the risks of a growth slowdown and polarization," Choo said during an economy-related ministerial meeting at Government Complex Sejong. "And we need a bold paradigm shift in economic policy to lay the groundwork for a cycle of growth and distribution of wealth."
Referring to the current regulations and tax rules as "outdated," Choo said, "We need a resolute will to solve the difficult and complex regulations that no one has improved in previous governments."
"The government will go for drastic deregulation to invigorate the corporate world and scrap any barriers that have obstructed business activities," he said.
The deputy prime minister said that he will spearhead the task force, which will be divided into smaller units focusing on the environment, public health and medical care and prospective industries, among others.
"We will work on the target areas to achieve tangible results," he said.
Choo said the preparations are underway for the Yoon government's first economic roadmap, and that it will be unveiled next week after the details are ironed out.
The focus of the economic reform will be on public infrastructure, labor, education, finance and the service sector "to elevate the course of the nation's economic growth," according to the minister.
He called for "preemptive measures" to achieve digital transformation, population change and other measures to cope with sustainable growth.
To tackle inflation, he asked the ministers at the meeting to "prioritize stabilizing prices" and called for full-fledged efforts to deal with relevant administrative policies.
Choo has been busy in his first month after taking office in early May, being in charge of the 59.4 trillion won ($47.2 billion) supplementary budget aimed at supporting pandemic-stricken small businesses, as well as countermeasures against inflation, which nearly reached a 14-year high in May.
He also had an official meeting with Bank of Korea (BOK) Governor Rhee Chang-yong amid a growing need for the coordination of fiscal and monetary policies.
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