Finance minister nominee envisions nation as 'Korea Inc.' to generate returns for public

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Finance minister nominee envisions nation as 'Korea Inc.' to generate returns for public

Published: 30 Jun. 2025, 13:59 Updated: 30 Jun. 2025, 14:31

Audio report: written by reporters, read by AI

Koo Yun-heol, the Lee Jae Myung administration's nominee for finance minister and deputy prime minister, speaks to reporters at a press conference in the Korea Deposit Insurance Corporation building in Jung District, central Seoul, on June 29. [NEWS1]

Koo Yun-cheol, nominee for deputy prime minister and finance minister, said on Sunday he would push for sweeping economic reforms aimed at achieving “true growth.”

Speaking at a press conference shortly after the nomination was announced on Sunday afternoon, the former chief of the Office for Government Policy Coordination laid out his broad vision: “The basic direction is to manage Korea like a corporation — ‘Korea Inc.’"

"The real shareholders are the Korean people, and civil servants are the agents and core employees who must faithfully carry out the will of these shareholders to manage the national economy," Koo told reporters.

He identified three key priorities for his term: stabilizing the cost of living, pushing forward an economic transformation and responding to external risks.

The following are excerpts from the briefing, edited for length and clarity.

Q. You highlighted stabilizing consumer prices as the top priority for household finances. Why?

A. In a situation where incomes are not rising significantly, the cost of living becomes especially important. We need to focus on the prices of things people actually buy every day — eggs, ramyeon [instant noodles] and bean sprouts. The idea is to zero in on prices that people feel directly, day to day.

As you will be tasked with drawing up the budget, will you lean toward expansionary or tight fiscal policy?

Whether to pursue expansion or austerity is not the essential issue. Fiscal soundness must of course be maintained, but spending where it is truly needed is what drives national development. We should see the budget not just as simple expenditure, but as an investment. If we spend money in a productive way over the mid- to long-term, even large budgets can help the country earn money and secure sustainability.

How do you plan to restructure the Ministry of Economy and Finance?

To be honest, I don’t yet fully understand how the organization currently operates. I think I’ll be able to speak on that after I’ve had a chance to assess it.

What exactly do you mean by "Korea Inc."?

A company is an entity with costs and revenue. If you make investments that fail to generate returns, the company goes bankrupt. It’s the same for Korea. We must invest wisely to produce returns, cut spending to boost efficiency and, through that, create the future engines of growth for the country.

Securing tax revenue is also a critical issue. Are you considering tax hikes?

In these difficult economic times, it’s not easy to raise taxes. Rather than increasing taxes, what’s more important is to grow the pie through an ultra-innovative economy, so that tax revenue naturally increases. Trying to collect more tax alone won’t solve the problem.

After two rounds of extra budgets, is a third supplementary budget needed?

People understand that just spending more money isn’t necessarily good when the economy is in such a tough spot. It’s important that the supplementary budgets already drawn up are passed in a timely manner and produce real effects.

We shouldn’t approach things as just black and white — it’s not simply about whether we do it or not. We need a practical perspective: If it’s necessary, we do it; if not, we don’t. Going forward, we’ll look at various measures centered on fiscal outcomes and efficiency.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM YEON-JOO [[email protected]]