Deputy Prime Minister-MOSF Minister Choi Kyung-hwan shakes hands with Bank of Korea Gov. 

Lee Ju-yeol prior to their closed-door meeting on July 21. (photo: MOSF)

New Deputy Prime Minister Choi Kyung-hwan, also minister of the Ministry of Strategy and Finance (MOSF), has indicated that strong measures will be taken to boost the national economy, which is struggling with weak domestic demand in the wake of the April 16 ferry Sewol disaster.

Deputy Prime Minister Choi, the head of the second economic team of the Park Geun-hye government and one of President Park’s confidants, said in his inauguration speech on July 16 that he would come up with “bold macroeconomic policies” to turn around the sagging economy and improve consumer sentiment.

Choi told reporters following his inauguration, “We strive to reinforce finances through a variety of alternative steps instead of a supplementary budget.”

Deputy Prime Minister Choi presided over the 25th Ministerial Meeting on the Economy on July 18, the first ministerial-level meeting since his inauguration, in which he outlined his new team’s economic policies. 

He told the meeting, “The economy continues to struggle; recovery continues to fall short of expectations and even now continues to waver. The situation remains dire as the recovery is in danger of losing all momentum.” 

“What ails the Korean economy right now cannot be patched over with temporary, short-term fixes. Rather, structural problems have been built upon each other and have become quite complex, a much more serious problem. The administration’s new economic team understands the responsibility it has to the Korean people and is ready to propose policies that will lead to a full economic recovery,” he said. 

“The government’s first priority is to implement policies that will lead to a revival in confidence throughout the entire economy. The government will create a virtuous cycle between household income and corporate income, promoting a mutually beneficial relationship between households and business. The government will improve the economic environment by quickly implementing policies that will yield tangible results. The government will ensure that the wind of innovation that is the Three-year Plan for Economic Innovation is a wind that blows and throughout the economy. 

“The administration’s new economic team, following in the mold of World Cup champion Germany and their motto of ‘One Team,’ will exhibit exemplary teamwork in order to successfully achieve these goals. Although the Korean economy has never been down this path before, the Park administration and the administration’s new economic team will work to ensure that the Korean economy continues down the path of recovery by developing creative new policies,” Choi said. 

Deputy Prime Minister-MOSF Minister Choi met with Bank of Korea Gov. Lee Ju-yeol in a closed-door meeting on July 21 and agreed to make concerted efforts to achieve sustained economic growth. The two shared the view on the growing recession risks, including sagging domestic demand. 

Deputy Prime Minister Choi Kyung-hwan met with the heads of five major business organizations on July 22 in which he urged businesses to be confident and actively invest  to create jobs. He resolutely expre-ssed his desire to strengthen communication channels with business by creating a hotline that will give direct and unfettered access to the Deputy Prime Minister’s office. He also emphasized joint public-private sector cooperation to find solutions to the difficulties ailing the Korean economy. 

The deputy prime minister, in his speech to the meeting, expressed his worries about the loss of confidence permeating throughout the country as the economy continues to struggle. He then proposed measures the government will take, which included instituting new macroeconomic policies, boosting household income, supporting society’s most vulnerable, and actively implementing a three-year economic innovation plan.