The government has decided to base its 2027 economic growth strategy on easing polarization and raising the potential growth rate. The detailed strategy will be released in December after cross-ministry collaboration.
Deputy Prime Minister and Minister of Economy and Finance Lee Hyeong-il presided over an emergency economic ministers' meeting at the Government Complex Seoul on the morning of the 11th. At the meeting, he unveiled the "Direction for Promoting the 2027 Economic Growth Strategy."
Lee first pointed to achievements in employment and the external sector. "The number of employed people in October continued to rise by double digits for a fourth consecutive month, and the September current account surplus exceeded $60 billion in a single month for the first time, setting a new all-time record once again," he said. However, he said the government would not be complacent about the current situation. He said it would pool all of the nation's capabilities for greater growth and warmer livelihoods.
The economic outlook system will also change. Until now, the government has presented outlooks twice a year, issuing the economic growth strategy at the end of the year and a separate second-half strategy in July of the following year. Going forward, it will increase the number of outlooks to three a year. This is the first overhaul of the outlook cycle in 32 years.
A separate second-half strategy will no longer be produced. Instead, when it announces a revised outlook, it will also present supplementary measures tailored to the changed economic conditions. In effect, it is switching to a method of issuing supplementary measures as conditions change.
The deputy prime minister will personally take the lead in responding to polarization. The government decided to set up a promotion system headed by the deputy prime minister and respond at the whole-of-government level. Lee stressed, "I will personally serve as team leader and bring together the capabilities of relevant ministries and state-run research institutes."
Five working groups will be formed under the task force (TF). They are the groups on improving the dual structure of the labor market, easing gaps between industries (companies), easing regional gaps, easing generational gaps and easing social gaps. Each group will be headed by a vice minister of the lead ministry. Ministry-level Grade 1 officials and others will also take part.
The tasks identified will be pursued along three tracks: tasks to be implemented immediately, tasks for institutional improvement next year, and tasks that require social discussion first. Core tasks will receive a concentrated policy package combining fiscal, tax, financial and regulatory measures. The idea is to create success models and then expand them.
Measures to close regional gaps were also announced. The upper limit on contract value subject to regional mandatory joint contracts will be raised sharply from the current 8.8 billion won (below 26.5 billion won for public institutions) to below 30 billion won. The measure aims to widen opportunities for construction firms outside the capital region to participate. Small and medium-sized enterprises that relocate to the provinces will receive preferential treatment in management condition evaluations and delivery record requirements.
New tasks for the ultra-innovation economy leading projects were also discussed. They target actuators, a key component for implementing physical AI, and secondary batteries for humanoids. Through localization and standards development, the government plans to build a foundation for large-scale mass production by 2030.
The temporary fuel tax cut on gasoline, diesel and butane was due to end at the end of this month. The government will extend it by two months, to the end of January next year. Lee cited the prolonged Middle East war and the need to ease the public's fuel cost burden ahead of winter.
The 12th maximum petroleum price, to apply from midnight on the 14th, will be announced at 6 p.m. on the 13th. The government plans to set the price after comprehensively considering international oil price trends and the burden on the public.