Finance Minister Choi sang-mok speaks during an economy-related ministers’ meeting in Seoul on June 26, 2024. (Image courtesy of Yonhap)
SEOUL, Jun. 26 (Korea Bizwire) — Finance Minister Choi Sang-mok said Wednesday it will take longer for the people to feel a recent economic recovery due mainly to still-high interest rates and inflation, vowing policy priority on supporting small businesses and other vulnerable classes.
Choi made the remarks during an economy-related ministers’ meeting in Seoul, while noting that South Korea will continue to see a gradual economic recovery and the gradual easing of inflation in the second half of this year.
“Our economy has taken a path for a recovery led by rising exports. Such a trend is projected to continue through the second half of this year,” Choi said.
“But conditions for the livelihoods of the people are far from favorable. It is projected to take time for the people to feel that the economy is recovering, long burdened by high inflation and interest rates,” he added.
Small firms and the self-employed, in particular, are suffering mounting difficulties amid rising debts, and the government will focus on measures to stabilize the livelihoods of the vulnerable people.
The government will also plan to present a comprehensive road map meant to facilitate longer-term growth momentum next month, the minister said.
Exports rose 11.7 percent on-year to $58.1 billion in May on the back of strong shipments of semiconductors, extending on-year gains to the eighth straight month.
Consumer prices, a key gauge of inflation, rose 2.7 percent on-year in May, staying below 3 percent for the second consecutive month, but prices of fruits and petroleum products soared over supply issues and unstable global oil prices.
(Yonhap)
