Gov't to push for increased investment to counteract weak domestic demand

The Ministry of Finance will hold meetings with the private sector and corporate organizations to promote investment amid a weak recovery in domestic demand.

Minister of Economy and Finance Choi Sang-mok speaks during an economic ministerial meeting held at the government complex in central Seoul on Thursday. [MINISTRY OF ECONOMY AND FINANCE]

The government will bolster its efforts to stimulate investments across the public and private sectors as Korea continues to grapple with weak domestic demand, the finance minister said Thursday.

“While robust exports continue to fuel the economic rebound, the recovery in domestic demand remains relatively slow with diverging degrees of progress,” said Minister of Economy and Finance Choi Sang-mok during an economic ministerial meeting held at the government complex in central Seoul.

Choi will meet with business lobbies and corporate representatives to discuss measures to expedite investments starting in October, and a ministerial meeting focusing on investment stimulus measures will be held on a regular basis.

An ongoing initiative aimed at expediting and facilitating the execution of investments will be expanded this month, with vice minister-level officials joining the team.

As part of the wider plan, the Finance Ministry announced the same day that a state-backed fund designed to drive local investments will allocate 1.4 trillion won ($1 billion) for a project to build a liquefied natural gas terminal in Yeosu, South Jeolla, by 2027.

During the meeting, Choi also addressed the recent spike in household debt, saying that the government will continue to closely monitor the situation.

“As the growth in housing transactions since June has been driving up mortgage loans and household debt after a lag, the government will remain vigilant and strive to manage household debt levels,” said the minister.

Regarding the massive payout delay at Qoo10-owned TMON and WeMakePrice, the government has so far provided financial support worth 343.2 billion won, including low-interest loans and expiration extensions, for affected sellers, according to the Finance Ministry.

Meanwhile, the government also announced a plan to refurbish and rebrand aging industrial complexes with the goal of attracting younger generations to the manufacturing sector.

Under the plan — led by the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport — outdated industrial complexes will be renovated to include cultural amenities such as sports facilities and performance venues.

Another agenda item discussed during the meeting was a set of plans to revise regulations and expand public services closely related to daily lives, such as the lowering of the maximum speed for electric scooters from the current cap of 25 kilometers per hour (15.5 miles per hour) to 20 kilometers per hour.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]