Deputy PM Lee says 3% growth, $40,000 per capita income 'in sight' this year

First economic ministers' meeting since taking office; annual exports seen topping $1 trillion for first time

All available resources to be mobilized for housing, jobs and household finance

7.9 trillion won in pending investment to be fast-tracked; Korea's green transition strategy to be released soon

Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il chairs his first Emergency Economic Headquarters meeting and economic ministers' meeting since taking office at Government Complex Seoul in Jongno-gu, Seoul, on Thursday. [Yonhap]

Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il said Thursday that South Korea is on track to achieve economic growth of 3 percent or more and per capita national income of $40,000 this year. He also projected that annual exports will surpass $1 trillion for the first time in history, and said the government will focus its policy efforts on expanding future investment, removing obstacles to corporate investment and stabilizing livelihoods.

Lee chaired a joint Emergency Economic Headquarters and economic ministers' meeting at Government Complex Seoul, saying he felt "a profound sense of responsibility" presiding over his first economic ministers' meeting since taking office. He said he would work with ministers and vice ministers from related ministries as a unified economic team to concentrate policy efforts on improving people's lives.

Lee said that "despite difficult external conditions such as the war in the Middle East, the Korean economy is on a more solid growth path than ever." He projected that September exports would set a new all-time monthly record and that annual exports would exceed $1 trillion for the first time. According to the Ministry of Economy and Finance, cumulative exports through Sept. 20 reached $765 billion, already surpassing last year's full-year total of $709.3 billion.

Lee said investment, consumption and employment are improving with a lag, making 3 percent growth and per capita income of $40,000 increasingly visible this year. He attributed the weakness in August industrial activity to temporary factors and a base effect from strong growth in the first half of the year, and went on to say that "a September rebound is expected and the composite coincident index continues to rise, suggesting that solid growth momentum is being maintained."

He outlined three priorities for economic policy going forward: accelerating growth and reversing the decline in potential growth, stabilizing livelihoods and reducing polarization, and managing macroeconomic risks.

Lee said the government would "tighten the sails of growth" to further accelerate the economy and reverse the slide in potential growth rather than rest on current gains. He said the government plans to pursue large-scale preemptive investment in future industries through three major mega-projects and to improve the business environment by clearing on-the-ground obstacles that hinder corporate investment.

On livelihood issues, Lee said the government would manage inflation stably while making an all-out effort to close regional, industrial and generational gaps. He said the government would "mobilize all available resources and policy tools" for the three core social policy areas — housing, jobs and household finance — to deliver results that people can feel as quickly as possible.

Lee also stressed the need to respond proactively to external uncertainties. He said the government would closely monitor the impact on financial and real economic conditions as the semiconductor boom driven by the AI transformation and the shift in major central banks' monetary policies triggered by the Middle East war pull in opposite directions.

At the meeting, the government agreed to fast-track 7.9 trillion won ($5.82 billion) worth of pending investment projects through a second round of field-centered corporate investment and innovation support measures. Lee said the government would "unblock stalled investment and resolve on-the-ground difficulties" to support corporate investment and innovation.

A 4 trillion won investment project to convert an internal combustion engine vehicle factory in Ulsan into an electric vehicle-focused facility will have its licensing and permit process cut from three years to within one year. A clean hydrogen power auction market will also open this month, and the weighting given to contributions to the domestic clean hydrogen ecosystem in evaluations will be expanded to spur roughly 3 trillion won in production and power generation facility investment. The exact investment scale will be confirmed after operators are selected.

The government will also overhaul investment-related regulations in advanced and emerging industries — allowing integrated procurement of electrical and telecommunications work when installing semiconductor fabrication facilities, and enabling manufacturers to obtain batch change permits for cylinder cabinets that protect gas containers used in semiconductor manufacturing.

The meeting also discussed plans to revamp the Onuri gift voucher program, a support scheme for a children's self-reliance fund, and the Korea Green Transformation strategy, known as K-GX. The government plans to announce the K-GX strategy — aimed at securing new growth engines through the decarbonization of major high-emission industries and the development of leading green industries — as soon as possible.

Lee said the government would "step forward and provide full support so that all regions and citizens can share in and participate in the fruits of the green transformation."

fact0514@heraldcorp.com