Lee Ju-yeol, Lee Jae-myung on Basic Loans: "There Are Side Effects of Increasing Debt Repayment Burden"

October 15 National Assembly Planning and Finance Committee Audit

Lee Ju-yeol, Governor of the Bank of Korea, attended the National Assembly's Public Administration and Finance Committee's audit of the Bank of Korea held on the 15th, reviewing documents. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jang Sehee] On the 15th, Lee Ju-yeol, Governor of the Bank of Korea, commented on Lee Jae-myung, the Democratic Party of Korea's presidential candidate's nationwide basic loan pledge, saying, "I fully understand the massive required funds and the side effects of increasing debt, which raise the repayment burden."

Governor Lee made this remark in response to a question from Seo Il-jun, a member of the People Power Party, during the National Assembly's Planning and Finance Committee audit on the same day.

Regarding basic income, he avoided a direct answer, stating, "Since it is an election pledge of a prominent presidential candidate, it does not seem appropriate for the central bank governor to comment on it."

Earlier, the Bank of Korea submitted materials to the National Assembly stating, "In the short term, it will improve household income conditions, stimulate domestic demand, and act as a factor increasing inflationary pressure," and "In the mid to long term, if government debt increases and market interest rates rise, the consumption stimulation effect will diminish, and inflationary pressure may be limited."

Regarding the impact of basic income on the real estate market, the Bank of Korea stated, "Since it is a factor that generally increases market liquidity, it may partially affect real estate demand," but also expressed the view that it is difficult to make a uniform judgment due to various factors in the actual market.