Hong Nam-ki, "Supplementary Budget Formation Needed"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki stated on the 24th that it is necessary to prepare a supplementary budget bill in relation to the novel coronavirus infection (COVID-19).

Deputy Prime Minister Hong said in a post on the social networking service (SNS) Facebook that "With the recent rapid increase in confirmed cases due to the spread of transmission in the local community and the crisis alert level being raised to the 'serious' stage, the need for an active role of fiscal policy, including the supplementary budget, has grown even more."

He continued, "Since last week, the government has been focusing all efforts on preparing a 'first comprehensive package support plan' that the government can swiftly implement on its own to provide stronger support beyond emergency aid, and to actively reinforce consumption, investment, and export slowdowns in our economy caused by this situation," adding, "It is scheduled to be announced within this week."

He also said, "In addition to the first comprehensive package support plan, we have judged that it is now necessary to prepare a supplementary budget. After consultations among the ruling party, government, and Blue House, we intend to start as soon as possible and proceed with a speedy review and announcement."

Deputy Prime Minister Hong stated, "Regarding immediate quarantine support funds, it is appropriate to provide the disaster contingency reserve fund amounting to 2 trillion won as soon as possible without waiting for the supplementary budget," and added, "The first comprehensive package support plan, which is currently being finalized, will also be prepared focusing on swift support within the government's capacity."

Furthermore, he emphasized, "For the early end of the COVID-19 situation, strengthening infectious disease response capabilities, early recovery from damages, and additional economic reinforcement, efforts by the central government alone are insufficient. Local governments, public institutions, and private financial institutions must join forces from a national perspective to respond together."