Koo vows push to lift Korea’s potential growth

Dec 16, 2025, 09:59 am

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Deputy Prime Minister and Finance Minister Koo Yun-cheol speaks at a meeting of ministers on strengthening industrial competitiveness and the government’s growth strategy task force at the Government Complex Sejong on December 16. / Source: Yonhap News

Deputy Prime Minister and Finance Minister Koo Yun-cheol said on December 16 that the government will “go all out” to deliver a rebound in South Korea’s potential growth rate next year as part of a broader push for a “major leap” in the economy.

Speaking at the Government Complex Sejong during a joint meeting of ministers on strengthening industrial competitiveness and the growth strategy task force, Koo said the economy has “turned to a recovery trajectory” since the launch of the new administration despite headwinds including tariff negotiations with the United States and weak domestic demand.

He said the government will 집중 육성—meaning intensively nurture—advanced strategic industries through the National Growth Fund and accelerate results from so-called “super-innovation economy” flagship projects. Koo also stressed continued efforts to address pressing issues such as the green transition (GX) and reinforcing global logistics supply chains.

The meeting discussed a range of agendas, including operating plans for the National Growth Fund, implementation plans for the flagship innovation projects, strategies to secure global logistics and supply-chain hubs, and measures to expand the adoption of heat pumps.

On the National Growth Fund, Koo said the program would serve as a catalyst for advanced strategic industries by pairing “the private sector’s spirit of challenge” with risk capital from the financial sector. He said the government plans to operate the fund at a 규모 of more than 30 trillion won in 2026.

He added that support mechanisms will be diversified to meet corporate demand, including 3 trillion won in equity investments, 7 trillion won in indirect investments, 10 trillion won in infrastructure investment and lending, and 10 trillion won in ultra-low-interest loans.

#Koo Yun-cheol #potential growth rate #National Growth Fund