South Korea’s top economic policymaker has pledged to deploy the full range of available instruments, including fiscal measures and tax adjustments, to combat rising inflation.
The finance chief’s remarks on Thursday mark a significant escalation in the government’s rhetoric, suggesting that monetary policy alone may be insufficient to anchor price expectations in the face of persistent cost pressures.
The commitment to use fiscal levers adds a new dimension to the global inflation battle.
While central banks in the US and Europe have been the primary drivers of tightening cycles, Seoul’s approach indicates a willingness to coordinate across policy domains.
This holistic strategy aims to reduce the burden on households and businesses while simultaneously cooling demand-side pressures that fuel price growth.
The announcement comes amid a synchronized global push for price stability.