Deputy Prime Minister and Finance Minister Koo Yoon-cheol told Fitch Ratings’ annual consultation team on Thursday that South Korea is strengthening cooperation with economic players to boost its competitiveness in industries such as artificial intelligence and semiconductors.

Koo said rapid policy responses—including an extra budget and consumer coupon programs—had helped lift third-quarter growth, adding that the economy now stands at a turning point that will shape its trajectory for decades.

He said the government will channel fiscal investment and regulatory reform into building an “ultra-innovation economy,” aiming to generate visible results quickly through coordination among businesses, policymakers and financial institutions.

Koo noted improvements in financial markets, citing the recent rise in the benchmark Korea Composite Stock Price Index and ongoing work to align capital and foreign exchange markets with global standards, including efforts to include the country in the Morgan Stanley Capital International Developed Markets Index.

Responding to Fitch’s questions about U.S.-Korea investment cooperation, he said recent bilateral agreements had reduced export uncertainty and that Korean firms aim to turn investment in the United States into a strategic opportunity to lead global value chains.

He also emphasized that annual investment limits, phased payments tied to project progress, and the flexibility to adjust remittances have eased pressure on foreign-exchange markets.

Koo said the new administration will shift toward performance-focused fiscal management, restructuring unnecessary spending, while aggressively funding high-growth sectors to ensure fiscal sustainability through economic expansion.