[Exclusive] Ministry of Economy and Finance Executes 'Unprecedented' Supplementary Budget Project Amid Financial Services Commission Opposition

Financial Services Commission "Cashback business is not our department"... Ruling party and government finalizing cashback limit adjustments

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The Ministry of Economy and Finance will be responsible for executing the supplementary budget (추경) projects for the first time in history. This follows the Financial Services Commission's opposition to taking charge of the projects.

According to multiple related ministries including the Ministry of Economy and Finance and the Financial Services Commission on the 24th, the Ministry of Economy and Finance will oversee the credit card cashback project. Considering it related to consumption tasks, the 'Macroeconomic Analysis Team' plans to directly manage the project.

Initially, the Ministry of Economy and Finance planned to assign the project to the Financial Services Commission, but it was confirmed that there was strong opposition from the Financial Services Commission's responsible departments, including Chairman Eun Sung-soo. It was also reported that Chairman Eun expressed opposition during the closed-door meeting held that day.

The Financial Services Commission maintains that it cannot take charge of the project as it is unrelated. A Financial Services Commission official stated, "We do not consider the Financial Services Commission to be the department responsible for cashback," adding, "Just because card companies are involved does not mean the Financial Services Commission should handle it." The official further noted, "During the first round of disaster relief payments, the Ministry of the Interior and Safety was responsible for the project."

This is the first time the Ministry of Economy and Finance will execute supplementary budget projects. While the Ministry's Lottery Commission and the Office of External Economic Affairs have handled fund-related projects, it is unusual for the policy bureau to oversee a project comprehensively. There are concerns within the Ministry itself, as conflicts of interest may arise when the same entity both drafts and executes the budget.

Meanwhile, the credit card cashback project is considering a plan where if spending with credit cards in the third quarter (July to September) exceeds that of the second quarter (April to June), 10% of the excess amount will be refunded. However, the government and ruling party are in final negotiations over the maximum cashback limits of 500,000 won and 300,000 won. It has also been confirmed that consumption at large supermarkets and durable goods such as automobiles will be excluded.