Seoul, Sep 8 (IANS) Finance Minister Koo Yun-cheol said on Monday the government plans to inject an additional 7 trillion won ($5.03 billion) by the end of this year to spur investment from public institutions, as part of efforts to revitalise the economy amid a prolonged slowdown.

Koo made the remarks during his first official press briefing since taking office, during which he outlined the ministry’s priorities in macroeconomic management, reports Yonhap news agency.

“The government plans to carry out an additional 7 trillion won in budget execution through public institutions by year-end,” Koo said.

Koo said the ministry will place policy emphasis on three areas — responding to economic cycles, revitalising livelihoods and stabilising consumer prices.

In particular, the minister stressed efforts to tame inflation for essential living costs, such as food prices, ahead of the extended Chuseok holiday early next month.

The minister said a comprehensive holiday support plan will be announced soon to ensure price stability and protect vulnerable groups.

Consumer prices, a key indicator of inflation, rose 1.7 percent on-year in August, the slowest increase in nine months, according to Statistics Korea.

The agency, however, has noted that the moderation may be temporary. The statistics office earlier said the inflation rate would have reached 2.3 percent in August, marking the fastest price growth since July 2024, had it not been for a sharp drop in mobile phone fees.

Koo’s press conference came a day after the government announced a major restructuring plan that would strip the Ministry of Economy and Finance of its budget planning authority. A new fiscal agency under the prime minister’s office will be established to take over such a role.

Earlier, a plan to reorganise the government under the Lee Jae Myung administration was finalised on Sunday, with the existing headquarters of the prosecution to be dismantled and replaced by new agencies and the finance ministry’s budget planning role to be transferred.

Under the plan confirmed in a meeting of the ruling Democratic Party (DP), the government and the presidential office, the Prosecution Service will be scrapped and two new agencies will be created to separately take on the prosecution’s indictment and investigative powers.

The move comes as part of Lee’s drive to reform the prosecution, which the DP says is intended to curb prosecutors from abusing their powers and end politically motivated investigations.

—IANS

na/