Ministry of Finance and Economy

On June 19, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol chaired the 270th Ministerial Meeting on International Economic Affairs at the Government Complex Seoul. During the meeting, participants discussed external economic policies in preparation for the Post-Middle East Conflict era, along with current trade issues and other major external economic matters.   Key messages from Deputy Prime Minister Koo’s remarks are as follows:   [Progress and Future Plans for the Post-Middle East Conflict Era]   The recent agreement between the United States and Iran to conclude a memorandum of understanding on ending the conflict presents Korea with a new set of challenges, as well as opportunities and tasks ahead. The government will move beyond crisis response to seize medium-and long-term opportunities, while further strengthening economic security and enhancing supply chain resilience.   The government will now launch a whole-of-government effort to advance its Post-Middle East conflict external economic policy agenda. Cooperation opportunities arising from the reconstruction and economic transformation of Middle Eastern countries will be proactively pursued, while policy measures will be implemented to address the supply chain risks highlighted once again by the recent developments.   1)      Efforts will focus on identifying key projects in the Middle East and securing opportunities for early engagement.   -          A kickoff meeting of the Middle East Infrastructure Cooperation Working-Level Task Force (TF) will be convened to develop strategic projects, while government-to-government (G2G) cooperation will be reinforced through high-level delegations to the region and other follow-up measures.   2)      An economic security framework to proactively address supply chain risks will be established.   -          A pilot operation of a whole-of-government Supply Chain Early Warning System (EWS) will be conducted in the second half of the year to identify potential risks at an early stage. Efforts will also be made to reorganize the list of economic security items.   3)      New growth opportunities will be secured through tailored economic cooperation strategies for individual countries.   -          Country-specific strategic economic cooperation measures will continue to be developed, while linkages with projects stemming from summit outcomes will be strengthened.   [Status of Trade Agreement Initiatives in Major Economies and Response Measures] [Update on U.S. Section 301 Investigations and Response Plans]   To maximize the benefits of regional cooperation, efforts will be made to actively advance FTA negotiations with Mongolia, China, Morocco and other partner countries. A mutually complementary economic cooperation platform linking Mongolia’s natural resources with Korea’s technological and industrial capabilities will be established, while reciprocal market opening with China will be promoted, including through cooperation in the K-content sector.   On June 2, the U.S. government announced the findings of its Section 301 investigation concerning forced labor practices in 60 economies. In response, the Korean government will make every effort to preserve the mutually agreed balance of interests between the two countries while ensuring that Korea does not face less favorable outcomes than other major economies. Comprehensive and proactive efforts to address all pending trade issues with the United States will continue to prevent Korean companies from being placed at a disadvantage.   [Reform Measures for Korea’s Knowledge Sharing Program (KSP)]   Over the past two decades, the KSP has established itself as Korea’s flagship economic cooperation initiative, delivering 761 policy consultation projects across 102 partner countries.   The program will now be reformed to move beyond bilateral policy cooperation and serve as a platform for significantly expanding overseas business opportunities for Korean companies. Priority projects will be proactively identified in four key sectors – supply chains, AI, green growth, and culture – while strengthening engagement with the private sector to unlock new opportunities for the Korean economy. Please refer to the attached files. 

The Korea-U.S. Strategic Investment Corporation (KUIC, the “Corporation”), which will support the implementation of strategic investments in the U.S. under the Korea-U.S. Strategic Investment MOU (Nov. 14, 2025), was officially launched on June 18. Established pursuant to the Special Act on the Operation and Management of Strategic Investments between the Republic of Korea and the U.S. (the “Korea-U.S. Strategic Investment Act”), which was passed by the National Assembly on March 12, the Corporation was formally established in time for the entry into force of the Act and held an inaugural ceremony at its headquarters in Naseong-dong, Sejong City.   Immediately following the passage of the Korea-U.S. Strategic Investment Act, the Ministry of Finance and Economy established the Korea-U.S. Strategic Investment Corporation Establishment Committee (the “Establishment Committee”), composed of seven members, including government and private-sector representatives, and chaired by First Vice Minister Lee Hyoung Il, to oversee the establishment of the Corporation. Over the past three months, the Establishment Committee deliberated on and resolved key matters related to the establishment of the Corporation, including its articles of incorporation, organizational structure, and staffing. Upon completing the Corporation’s registration on June 18, the Committee concluded its work by transferring responsibilities related to the establishment process to the newly appointed President and CEO of the Corporation.   The inaugural ceremony was attended by key Korean stakeholders, including Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol, representatives from government ministries such as the Ministry of Foreign Affairs and the Ministry of Trade, Industry, and Resources, and related institutions, as well as Chairman and CEO of the American Chamber of Commerce in Korea (AMCHAM Korea) James Kim. Participants expressed strong interest in the launch of the dedicated institution responsible for strategic investments and congratulated the establishment of the KUIC.   In his remarks at the inaugural ceremony, Deputy Prime Minister Koo stated, “With the establishment of the KUIC, the Korea-U.S. alliance has evolved into an even stronger partnership that extends beyond economic cooperation and security to encompass high-tech strategic industries.” He added, “By combining their respective strengths, Korea and the U.S. will advance together as indispensable hubs in the global supply chain.”   Deputy Prime Minister Koo also expressed his hope that the newly launched KUIC would serve as “a bridge connecting the industrial ecosystems of Korea and the U.S.,” pursue “investments that create win-win outcomes for both countries based on commercial viability and strategic considerations,” and “actively support Korean companies with strong technological capabilities in contributing to the restructuring of U.S. manufacturing.”   In his congratulatory remarks, Chairman and CEO of AMCHAM Korea James Kim congratulated the KUIC on its official launch and expressed confidence, stating, “The Corporation will play a pivotal role in translating Korea’s U.S. investment plans into tangible investments and concrete results.” He added, “AMCHAM, as a bridge between the business communities of Korea and the U.S., will work closely with the Corporation and provide its full support to ensure that this launch delivers meaningful outcomes for the economies of both countries.”   In his welcoming remarks, the inaugural President and CEO of the KUIC Park Jong Won stated, “The Corporation has been established as a dedicated institution to systematically advance investment cooperation between Korea and the U.S. at a time of profound transformation in the global economic order.” He added, “The Corporation will make every effort to strengthen industrial cooperation in strategic sectors agreed upon by the two countries, including energy and shipbuilding, and to expand the foundation for sustainable growth.” Please refer to the attached files. 

On June 18, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol convened an Expanded Meeting on Macroeconomic and Financial Stability with relevant agencies at the Government Complex Seoul to review global financial market developments following the U.S. Federal Open Market Committee’s (FOMC) decision earlier today (Korea time) to keep its policy rate unchanged, as well as financial and foreign exchange (FX) market developments related to the conflict in the Middle East, and to discuss policy responses.   Participants noted that, while the Federal Reserve kept its policy rate unchanged as widely expected by the market, the Fed’s commitment to price stability was emphasized at the first FOMC meeting chaired by Chair Kevin Warsh. They assessed that U.S. monetary policy could therefore evolve in a more hawkish direction going forward. In addition, recent policy rate increases by major central banks, including the Bank of Japan (BOJ) and the European Central Bank (ECB) ahead of the FOMC meeting, underscore the need for a close assessment of their potential impact on the macroeconomy and financial markets. In particular, participants agreed to develop measures to ease the burden on vulnerable sectors arising from higher domestic market interest rates and to strengthen support for vulnerable borrowers.   Participants pointed out that the recent announcement of a ceasefire agreement between the United States and Iran is expected to have a positive impact on the financial and FX markets. At the same time, close monitoring of the details of the agreement and its implementation will continue, while market conditions will be monitored on a round-the-clock basis and every effort will be made to preserve market stability.   Last but not least, participants agreed to fully implement an integrated risk monitoring framework encompassing the equity, bond, FX, and real estate markets, in recognition of the increasing interconnectedness among sectors amid evolving financial market conditions. Through this framework, they will systematically assess sector-specific risks and their potential spillover effects and take appropriate policy responses. Please refer to the attached files.