Koo Yun-cheol vows to name regional growth engines soon, unveil 7-part support package for balanced development

The government plans to finalize regional growth engines at the heart of its "5 Poles, 3 Specials" national balanced-growth strategy and launch a seven-part support package covering fiscal, financial, tax, regulatory and talent measures.

Three mega-projects anchored in semiconductors, AI data centers and physical AI are also set to accelerate, with the aim of boosting regional growth and national competitiveness at the same time.

Deputy Prime Minister and Finance Minister Koo Yun-cheol said Thursday at a joint Emergency Economic Headquarters and economic ministers' meeting at the Government Sejong Building that "the key to winning the global all-out competition lies not in the already saturated Greater Seoul area, but in the regions." The government would select growth engines suited to the distinct characteristics and potential of each area under the 5 Poles, 3 Specials framework and provide comprehensive support through the seven-part package, encompassing fiscal, financial, tax, regulatory and talent measures, he said.

The government plans to finalize growth engines for each region after incorporating input from local governments and businesses, and will announce the selections soon. Chosen projects will receive not only fiscal support but also financial and tax benefits, regulatory reform and talent development assistance in a concentrated, integrated package.

The government will also move ahead with the three mega-projects under the "Korea Great Leap Forward" initiative announced last month.

"We will push the three mega-projects — semiconductors, AI data centers and physical AI — at full speed to build a Korea with an unassailable lead," Koo said.

On the broader economic situation, he assessed exports as solid but said domestic uncertainty persists.

"Our economy is successfully weathering the waves of the Middle East war, with first-half exports rising 48.4 percent from the same period last year to a record high," he said. "At the same time, volatility in the foreign exchange and financial markets continues, and consumer prices rose 3.2 percent in June, meaning livelihood difficulties are ongoing."

He added that the government would move even more swiftly to roll out livelihood support measures in response to inflationary pressures, slowing employment growth, and rising exchange rate and interest rate volatility.

The meeting also covered a review of the government's response to the Middle East war, along with emergency support measures for small and medium-sized enterprises facing operational difficulties from the high exchange rate, the third basic plan for personal data protection, the direction for the 2026 Korea Grand Festival, and progress and future plans for the 5 Poles, 3 Specials growth engine initiative.