New deputy PM orders stronger macroeconomic analysis and forecasting capacity; prices, inequality put front and center

Lee Hyeong-il, the newly appointed deputy prime minister and minister of the Ministry of Economy and Finance, said Tuesday that officials should "reassess risks across the real economy and the real estate, financial and foreign exchange markets from scratch, and proactively prepare the necessary responses."

According to the ministry, Lee chaired his first senior staff meeting immediately after being appointed, reviewing the economic situation and key pending issues.

Deputy Prime Minister and Minister of Economy and Finance Lee Hyeong-il chairs a senior staff meeting at the Government Complex Seoul in Jongno-gu, Seoul, on Tuesday. [Ministry of Economy and Finance]
Deputy Prime Minister and Minister of Economy and Finance Lee Hyeong-il chairs a senior staff meeting at the Government Complex Seoul in Jongno-gu, Seoul, on Tuesday. [Ministry of Economy and Finance]

Lee said that while the Korean economy has continued its broad recovery, "uncertainty at home and abroad remains high due to shifts in the semiconductor industry cycle, changes in global capital flows, and geopolitical risks." He directed staff not to be complacent about near-term indicators and to sharpen the ministry's capacity for macroeconomic analysis and forecasting.

He also asked officials to stay on top of pressing issues, including investment projects with the United States.

Lee said the ministry must play an active role on livelihood and distribution issues. "I will make price stability the foundation of people's economic well-being," he said, adding that the ministry, as the control tower of the economic policy team, must take the lead in easing polarization — one of the most pressing challenges facing Korean society.

On organizational management, Lee called for closer collaboration between the ministry's core functions and its broader economic policy coordination role. He asked staff to strengthen ties between the ministry's own areas — tax policy, treasury management, international finance and public policy — and the deputy prime minister's responsibilities for developing economic policy, coordinating across ministries and managing external cooperation. He also pledged to build an organization where employees are rewarded based on effort and results.

Earlier in his inauguration address, Lee outlined a policy direction aimed at raising the economy's growth potential while ensuring the benefits of growth are shared broadly across the population.

"Economic growth is not felt through numbers alone," he said. "I will not neglect either task — lifting the potential growth rate or making sure the warmth of growth spreads evenly through people's lives."

He also said that stepping from the vice minister's office to the deputy prime minister's office was just crossing one threshold. "The economic challenges South Korea faces, the tasks we must solve, and our responsibility to the public are no different from yesterday," he said.

Addressing ministry staff, Lee said the policies they had worked on together should continue to be pursued steadily. "The heavy burden on your desks — I will be out in front, coordinating and making decisions, and carrying it alongside you," he said.

Lee began his tenure without a formal inauguration ceremony, delivering a pre-recorded address to ministry staff via an internal broadcast at around 9:30 a.m. Tuesday.

As his first official external engagement after taking office, Lee visited the National Assembly's finance and economy committee to deliver a closed-door briefing on investment-related matters with the United States. He was set to depart for New York later that night to attend an investor relations event promoting the Korean economy to overseas investors.


y2k@heraldcorp.com