Seoul: Finance Minister Koo Yun-cheol announced plans to inject an additional 7 trillion won (US$5.03 billion) by the end of the year to stimulate investment from public institutions, aiming to invigorate the economy amidst a prolonged slowdown. This announcement was made during his first official press briefing since assuming office, where he detailed the ministry's macroeconomic management priorities.

According to Yonhap News Agency, Koo emphasized that the government will execute an additional budget of 7 trillion won through public institutions by the year's end. The ministry will focus on responding to economic cycles, revitalizing livelihoods, and stabilizing consumer prices. The minister highlighted efforts to control inflation for essential living costs, such as food prices, during the upcoming extended Chuseok holiday.

Consumer prices rose 1.7 percent on-year in August, the slowest increase in nine months, as reported by Statistics Korea. However, the agency warned that this moderation might be temporary, pointing out that without a sharp drop in mobile phone fees, the inflation rate could have reached 2.3 percent in August.

Koo's press conference followed the government's announcement of a major restructuring plan, which will transfer the budget planning authority from the Ministry of Economy and Finance to a new fiscal agency under the prime minister's office. Addressing concerns over the potential weakening of the ministry's economic policy coordination role, Koo expressed confidence that the ministry and the new entity will create a synergistic effect.

Regarding ongoing discussions with the United States on exchange rate issues, Koo mentioned that an announcement will be made alongside the outcome of separate tariff-related talks. He noted that working-level consultations with the U.S. Treasury Department are ongoing.

The minister also addressed speculation about potential revisions to real estate-related tax codes, stating that any changes must consider housing market trends. On Sunday, the government revealed a significant housing plan to stabilize the property market by constructing 270,000 new housing units annually in the greater Seoul area from 2026 to 2030, totaling 1.35 million new homes. Koo stressed the importance of speed in housing supply.