Sangjo Kim, Blue House Policy Chief, on 'Supplementary Budget' Possibility: "Focusing on Swift Execution of Reserve Funds"

MBC Radio 'Kim Jong-bae Focus' Appearance, Leaves Door Open for Supplementary Budget Possibility... Deputy Prime Minister Hong Nam-ki "Fund Changes Within 20%"

[Asia Economy Reporters Ryu Jeong-min and Jang Se-hee] Kim Sang-jo, Chief of the Blue House Policy Office, left open the possibility of preparing a supplementary budget related to the novel coronavirus infection (COVID-19), while expressing his intention to focus on the swift execution of the already approved budget (budget confirmed by the legislature) and contingency funds.

On the 21st, Kim appeared on MBC Radio's "Kim Jong-bae's Focus" and said, "We plan to first concentrate on parts that can be quickly executed with the approved budget and contingency funds," adding, "Depending on how the situation develops, we may consider a supplementary budget, but since it must be approved by the National Assembly, it takes a considerable amount of time."

Kim added, "This year's budget was called a super budget of 512.3 trillion won. So far, only about 10% of the approved budget has been spent. Of the 3.4 trillion won contingency fund, only 104.1 billion won, approved at this week's Cabinet meeting, has been used."

Kim Sang-jo, Chief of Policy at the Blue House, is giving opening remarks at a meeting with business leaders regarding the response to the novel coronavirus, held on the 7th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Moon Ho-nam munonam@

The Blue House is emphasizing a solution to quickly execute the budget through government funds for now. Although there are criticisms that the government's contingency funds are insufficient for COVID-19 response, Kim explained that the amount is not inadequate.

He explained by citing the case of the supplementary budget for Middle East Respiratory Syndrome (MERS), saying, "(At that time) it was called the MERS supplementary budget, and the expenditure side was about 6 trillion won, but the amount truly related to quarantine was about 2 trillion won," adding, "I think the current scale of contingency funds is not that insufficient."

However, Kim left a lingering remark, saying, "If it is necessary to help with various difficulties faced by ordinary citizens, the government will consider all options."

In this regard, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, met with reporters after the "Korea-Russia 30th Anniversary of Diplomatic Relations Commemoration Project Preparatory Committee Meeting" and said regarding the review of the supplementary budget, "The executive branch can make fund changes within 20%," diagnosing that there is currently no difficulty in securing resources.

Hong said, "More important than whether to have a supplementary budget is the projects and policies themselves. Depending on what projects and policies they are, funding plans will be reviewed."

He continued, "If the policies and projects fall under fund projects, we plan to carry out fund changes," emphasizing, "We will also support contingency funds." According to the National Finance Act, financial funds can be changed without the consent of the National Assembly within 30% of expenditure standards, and non-financial funds within 20%, mentioning the possibility of securing resources through this method.