Finance minister nominee vows innovation, deregulation to spur growth momentum

Choi Sang-mok, the new finance minister nominee, speaks during a press conference in Seoul, Dec. 5. Yonhap

Finance Minister nominee Choi Sang-mok vowed efforts Tuesday to rev up economic growth momentum through innovation and deregulation amid prolonged external uncertainties and potential risks.

Choi, former senior presidential secretary for economic affairs, stressed the need to create a "dynamic economy" during a meeting with reporters as he was named the minister of economy and finance to double as deputy prime minister for the economy to replace Choo Kyung-ho.

"Continuous innovation is a must for an economy to create values. For the goal, easing regulations, nurturing science and technology for advanced industries, and structural reform are needed," Choi said. "Dynamic economy is one of the major keywords of the Yoon Suk Yeol government's economic policy."

Korea has well managed economic headwinds amid multiple external headwinds, as inflationary pressure has been stabilized and exports have recovered. But the country is still facing potential risks, and a recent economic turnaround has not been felt by the people, Choi said.

"I think we are experiencing the last cold snap in the economy. The impact of the economic recovery has not been well spread as high inflation and high interest rates have weighed on people's livelihoods," he said.

"My priority will be to stabilize the people's livelihoods by curbing prices and further boosting momentum for recovery," he said.

The Korean economy has shown signs of a gradual recovery as exports have bottomed out to rise for the second consecutive month in November after a yearlong downturn due to aggressive monetary tightening by major nations and a global economic slowdown.

But the Bank of Korea (BOK) last week slashed next year's growth outlook to 2.1 percent from 2.2 percent amid weak domestic demand.

The country also has seen a gradual slowdown in inflation this year, but consumer prices still stayed above 3 percent. The government said prices have been easing at a slower pace than expected, and the country is forecast to reach its 2 percent target by around the end of next year.

"It will take some time to lower prices enough," the nominee said. "Efforts to lower the expected inflation and push for structural reform are required." (Yonhap)