Nominee Pledges Price Stability as Top Priority

Lee Hyoung-il, the nominee for deputy prime minister and minister of finance and economy, vowed on Wednesday to make price stability his top priority, calling grocery prices a key gauge of the economic team's performance.

"Price stability is the foundation of people's livelihoods and the starting point for narrowing economic polarization," Lee, currently the first vice finance minister, said during a press briefing in the central city of Sejong, according to The Korea Times. "High prices weigh more heavily on vulnerable groups, making inflation control the economic authorities' biggest mission."

Lee said the government would make its best efforts to tame inflation and stabilize prices of daily necessities, adding that he would approach the issue with the mindset that prices serve as the government's "economic report card," as reported by Yonhap News — English. He also said he would seek to roll out additional measures to keep prices of key Chuseok holiday items in check.

The remarks came after the government announced Tuesday that it would release a record 180,000 tons of Chuseok food staples and offer 100 billion won ($73 million) in discounts on agricultural, livestock and fishery products.

During a Cabinet meeting the same day, President Lee Jae Myung urged the nominee to keep a close watch on prices of Chuseok staples, joking that he could withdraw the nomination if prices were not brought under control. The nominee responded that he would "definitely get them under control," as reported by The Korea Times.

Support for Vulnerable Groups and Economic Coordination

At the press briefing, Lee pledged to use the fiscal space created by strong semiconductor exports and other factors to provide bold support for vulnerable groups, including young people, small businesses and small and medium-sized enterprises, so they are not left behind by economic growth.

He also outlined plans to improve coordination across ministries, saying that, if appointed, he would establish an ad hoc meeting to bring together relevant ministers and officials from the presidential office to resolve differences over major issues with significant economic implications.

Among his immediate priorities will be refining and securing parliamentary approval for the government's proposed tax reform package, and he will also have to navigate the National Assembly's review of the 2027 budget proposal, according to The Korea Times.

Outlook on Inflation and Growth

Lee noted that the government needs to monitor the situation surrounding the war in the Middle East, saying that "future oil prices will be a key factor in inflation. But if such issues are addressed, upward pressure on consumer prices will ease," as quoted by Yonhap News — English.

He said the Lee Jae Myung administration has made progress in revitalizing the economy following the botched martial law declaration in 2024, and that once he takes the post, he will continue efforts to maintain economic growth momentum.

"The South Korean economy has swiftly emerged from the shock of martial law and is projected to post 3 percent economic growth this year, marking the first time in five years to reach that level," Lee said, as reported by Yonhap News — English.

Three Megaprojects Initiative

The nominee also vowed to maintain the economic momentum through the three megaprojects initiative, which aims at transforming the country's economy through investments in semiconductors, physical AI and AI data centers. "Building on the achievements made so far, it is now time for us to take on new challenges toward building an irreplaceable Republic of Korea," he said, referring to South Korea's official name.

He also said the finance ministry will maintain the government's stance that the country's approach to housing should focus on actual residence rather than investment.

Background and Nomination Process

Lee Hyoung-il, born in 1971, would become the first person born in the 1970s to serve as Korea's top economic policymaker if appointed, according to The Korea Times. He was named the new finance minister Sunday, as reported by Yonhap News — English.

Lee's nomination needs to go through a National Assembly confirmation hearing process before he can take the post.