Wed Sep 25 02:22:00 UTC 2024: ## South Korea Prioritizes Domestic Demand Over Household Debt: Finance Minister
**SEOUL** – South Korea’s Finance Minister Choi Sang-mok has stated that boosting domestic demand is a top priority for the government in the short term, even above tackling rising household debt.
Speaking at a discussion forum, Choi emphasized the need to revive domestic spending, particularly given the recent slowdown in economic growth. He cited the robust export sector as a key driver of the economy, while acknowledging the lagging recovery of domestic demand.
The minister’s comments come after the U.S. Federal Reserve’s unexpected half-percentage-point interest rate cut last week, which has raised expectations for similar action by the Bank of Korea. However, Choi expressed confidence in the Bank’s ability to make a “wise decision” considering the current economic situation.
While the Bank of Korea is concerned about rising house prices and household debt, the government remains focused on bolstering domestic demand. Minister Choi assured that the government will continue implementing measures to cool the housing market, including increasing supply and stabilizing construction costs.
South Korea’s economic growth is projected to reach around mid-2% in 2024, surpassing its potential growth rate. The government remains optimistic about the economic outlook, driven by strong export performance. However, the need to revive domestic demand remains a pressing issue.
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