S. Korean government plans to allocate over $5B to stimulate economy

South Korean Finance Minister Koo Yun-cheol said 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 revitalize the economy amid a prolonged slowdown, Report informs via Yonhap.

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

"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, revitalizing livelihoods and stabilizing 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.