Kim Sang-jo Chief's Controversial Remarks on 'Korean New Deal and 3rd Supplementary Budget Concerns'

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] It has been reported that Kim Sang-jo, Chief of Policy at the Blue House, mentioned that he was considering incorporating the concept of the "Korean New Deal" into the third supplementary budget (3rd supplementary budget). Since this remark was made at a gathering of elected members of the Democratic Party, there were also criticisms that it was an inappropriate statement for the Blue House Chief of Policy to make.

According to Democratic Party officials on the 29th, Kim attended a closed lecture at the Democratic Party elected members' workshop on the 27th and said, "The 3rd supplementary budget was promoted as a crisis response measure to the COVID-19 pandemic, so it was criticized as being insufficient compared to the value of the Korean New Deal. It was as worrisome as expected."

This is interpreted as an explanation that preparations for the 3rd supplementary budget began under the concept of a leading country and leading economy in the post-COVID era, but with the emergence of the Korean New Deal, the need to include more projects arose. Kim reportedly said, "We plan to expand the scope further through consultations among the party, government, and Blue House."

In response, a senior Democratic Party lawmaker questioned, "Is it appropriate for the Chief of Policy working at the Blue House to discuss such detailed procedural matters?" to which Kim reportedly apologized, saying, "I am sorry." Another Democratic Party lawmaker reportedly commented that "there is a lack of content related to fostering new growth industries."

Right after the workshop, the Democratic Party conveyed that Kim said regarding the Korean New Deal, "There will be some announcement by early June. Regarding the 3rd supplementary budget, work on the Korean New Deal is underway sequentially, and once completed, the government is expected to announce the prepared content."

Kim, an economist by training, expressed the nuance that it is insufficient to contain the Korean New Deal within the framework of the 3rd supplementary budget at a conceptual level, and from the perspective of some attendees, there was a sentiment that such remarks were inappropriate for a policy executor. The Korean New Deal is being promoted as a grand plan for industrial restructuring centered on the two pillars of digital and green, and the government and ruling party are currently deciding on projects that may be included in part of the 3rd supplementary budget.