Acting President Choi Sang Mok acknowledged that the RoK is facing an unprecedented political crisis triggered by President Yoon Suk Yeol's brief martial law declaration on the night of December 3, 2024. Choi emphasised that the government would make every effort to ensure stability across all sectors, including defence, diplomacy, economics, and society, so that citizens can feel secure. He expressed hope that the public and businesses would place their trust in the current government, which is committed to implementing timely solutions to support enterprises and boost domestic consumer demand.
Choi assumed the role of Acting President of the RoK on the evening of December 27, 2024, following the impeachment of Acting President and Prime Minister Han Duck Soo. Consequently, Choi is currently holding multiple positions, including Acting President, Acting Prime Minister, Deputy Prime Minister for Economic Affairs, and Finance Minister. Additionally, he is overseeing the Central Disaster Response Team addressing the aftermath of the tragic plane crash on December 29, 2024, which claimed 179 lives.
On the economic front, the RoK government has pledged decisive measures to stabilise the economy amidst unprecedented uncertainty. The administration recently projected a 1.8% growth rate for the RoK’s economy in 2025, emphasising that stability management will remain a key policy focus. This forecast is slightly lower than the 1.9% growth anticipated by the Bank of Korea (BoK) and the 2–2.1% estimates provided by international financial institutions. The downward adjustment reflects slower-than-expected recovery in domestic consumption and challenges in exports, particularly due to the semiconductor industry's downturn and the rise of global protectionism.
First Vice Minister of Finance Kim Beom Seok highlighted that this year could see unparalleled instability affecting growth trajectories, financial markets, foreign exchange rates, and people's livelihoods. Consequently, the Ministry of Finance is prioritising risk management over launching multiple new policy initiatives.
However, whether the RoK government’s determination will translate into tangible outcomes depends on multiple factors. The economic outlook for the East Asian nation remains fraught with challenges. Domestic consumption is expected to bottom out in the first quarter of this year and recover only gradually. Credit card spending, particularly in offline sectors like dining, has plummeted following the recent martial law declaration. Although inflation and interest rates are anticipated to decline this year, the RoK’s export-dependent economy faces potential downturns stemming from shifts in global trade policies.
To mitigate these challenges, the RoK government plans to front-load 431.1 trillion won (over 300 billion USD), equivalent to 75% of the total 2025 fiscal budget of 574.8 trillion won, within the first half of the year. This spending will prioritise support for low-income and vulnerable groups, small self-employed businesses grappling with declining retail consumption, and rising overdue debts. To further stimulate domestic spending, Acting President Choi Sang Mok’s administration is considering a large-scale sales event during the upcoming Lunar New Year holiday.
The RoK government and the ruling People Power Party (PPP) have agreed to allocate 11.6 trillion won (7.86 billion USD) in 2025 to stabilise consumer prices and alleviate financial burdens on low-income families. The administration in the East Asian nation also announced plans to create over 1.24 million direct job opportunities, prioritising senior citizens, with a goal of over 90% of these positions being filled within the first quarter of 2025.
