Korea finance minister pledges price stability, polarization relief at audit
In short
Deputy Prime Minister and Finance Minister Lee Hyung-il told a National Assembly audit on Oct 6 that the government would do its utmost to stabilize the livelihood economy and ease polarization. He cited high oil prices, sectoral polarization and the Middle East war as pressures while pointing to a semiconductor-driven expansion. He pledged to supply 1.19 million public housing units, adjust debt for vulnerable borrowers, and pursue the 7 SEED projects, a service industry development law and a green transition strategy within the year.
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Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il said on Oct 6 that the government would do its utmost to stabilize the livelihood economy and ease polarization, in remarks at the National Assembly’s Finance and Economy Planning Committee audit of his ministry. The audit opened a roughly month-long parliamentary inspection schedule, Maeil Business reported. Yonhap reported that he made the pledge in a work report to the committee, and Asia Economy reported he repeated it in his opening statement. [ 1 , 2 , 3 ]
Lee described an economy expanding on a global semiconductor boom while household burdens from prolonged high oil prices persisted, according to Asia Economy and Maeil Business. He pointed to polarization between sectors, slowing potential growth and high external uncertainty from the Middle East war, the two outlets reported. [ 2 , 3 ]
For households, he said the government would manage prices stably, naming petroleum products and food, and would respond strictly to unfair practices that disturb prices. He listed housing, jobs and microfinance as three core social policies and said 1.19 million public housing units under the September housing stability plan would be supplied swiftly. He also said accumulated debt would be actively adjusted and tailored financial support strengthened for vulnerable borrowers as interest rates rise. [ 1 , 2 , 3 ]
To lift growth potential, Lee said the 7 SEED projects would receive full support, a bill on service industry development would be pursued, and a Korean-style green grand transition strategy would be prepared within the year. He also cited support for corporate investment and the resolution of difficulties companies face on the ground. [ 1 , 2 , 3 ]
On external risks, he said the government would respond to uncertainty by securing alternative supply volumes and taking supply-demand stabilization measures, and would work to improve the resilience of supply chains over the long term. He also pledged to stabilize the foreign exchange market and to manage external credibility. [ 1 , 2 , 3 ]
Lee said taxes would be overhauled to achieve fair taxation; Yonhap and Maeil Business reported this includes real estate tax measures and a redesign of the family business inheritance deduction. [ 1 , 3 ]
Asia Economy and Maeil Business also reported that he pledged to reorganize public institutions, including merging similar or overlapping functions. [ 2 , 3 ]
Why it matters
The remarks set out the policy direction of South Korea’s finance ministry for the coming months, covering housing supply, household debt, tax reform and support for growth engines. Several pledges, including the 1.19 million public housing units and the green transition strategy, are goals the ministry said it would pursue; how they are implemented will affect households and companies.
Key facts
- Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il spoke at the National Assembly’s Finance and Economy Planning Committee audit on Oct 6. [ 1 , 2 , 3 ]
- He said the government would do its utmost to stabilize the livelihood economy and ease polarization. [ 1 , 2 , 3 ]
- He said 1.19 million public housing units would be supplied swiftly under the housing stability plan announced in September. [ 1 , 2 , 3 ]
- He pledged to actively adjust accumulated debt and strengthen tailored financial support for vulnerable borrowers as interest rates rise. [ 1 , 2 , 3 ]
- He said the 7 SEED projects would receive full support, a service industry development bill would be pursued, and a Korean-style green grand transition strategy would be prepared within the year. [ 1 , 2 , 3 ]
- He cited the Middle East war, high oil prices and external uncertainty as risks to the economy. [ 1 , 2 , 3 ]
- Maeil Business reported a plan for about $150 billion in shipbuilding cooperation investment and an expectation of around 3% growth this year. [ 3 ]
Confirmed by several sources
- Lee Hyung-il is deputy prime minister and minister of economy and finance. [ 1 , 2 , 3 ]
- He made the remarks at the National Assembly’s Finance and Economy Planning Committee audit on Oct 6, 2026. [ 1 , 2 , 3 ]
- He pledged to do his utmost to stabilize the livelihood economy and ease polarization. [ 1 , 2 , 3 ]
- He said 1.19 million public housing units would be supplied swiftly. [ 1 , 2 , 3 ]
- He pledged to adjust accumulated debt and strengthen tailored financial support for vulnerable borrowers. [ 1 , 2 , 3 ]
- He said the 7 SEED projects, the service industry development basic act and the Korean-style green grand transition strategy would be pursued, with the strategy to be prepared within the year. [ 1 , 2 , 3 ]
- He cited the Middle East war and external uncertainty as risks. [ 1 , 2 , 3 ]
- He said taxes would be overhauled for fair taxation, with Yonhap and Maeil Business reporting measures including real estate taxes and the family business inheritance deduction. [ 1 , 3 ]
Still unclear
- Implementation dates and legislative schedules for most of the pledges. The documents list policy directions without timetables.
- A plan for roughly $150 billion in shipbuilding cooperation investment. Single-source claim reported by Maeil Business; the other documents do not mention the figure.
- An expectation of around 3% growth this year. Single-source claim reported by Maeil Business; the other documents give no growth figure.
- The size and timing of a new fund for strategic exports mentioned by the minister. Asia Economy and Maeil Business mention the fund without figures or timing.