Hong Nam-ki "No to Supplementary Budget Draft... Priority is Swift Execution of Existing Budget" (Update)

2022 Economic Policy Direction Joint Briefing by Related Ministries

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is announcing the 2022 Economic Policy Direction at the 2022 Supplementary Budget Joint Briefing of Related Ministries held at the Government Seoul Office briefing room on the afternoon of the 20th.
From the left, No Hyung-wook, Minister of Land, Infrastructure and Transport; Deputy Prime Minister Hong; Moon Seung-wook, Minister of Trade, Industry and Energy. 2021.12.20 [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Sun-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 20th, "The government is not considering the preparation of a supplementary budget (추경) at this stage."

Deputy Prime Minister Hong responded to a question about the possibility of preparing a supplementary budget early next year during the '2022 Economic Policy Direction Joint Briefing with Related Ministries' at the Government Seoul Office in the afternoon, saying, "The budget size for next year has already been confirmed at 607 trillion won. The priority is to execute the secured existing budget as quickly as possible."

With the presidential election scheduled for March next year, the ruling party, the Democratic Party of Korea, has been strongly demanding the preparation of a supplementary budget early next year. However, Deputy Prime Minister Hong publicly clarified his opposition. Although the ruling party cites "COVID-19 crisis response" as the apparent reason, there are many criticisms that it is a populist pledge given the election is imminent. The government intends to maintain an expansionary stance next year as well, having prepared the highest-ever budget, and plans to focus on promptly executing it.

Deputy Prime Minister Hong explained, "The budget for next year was confirmed not long ago, and more than 18 trillion won has been allocated for support to small business owners and quarantine measures," adding, "Last week, we prepared and announced a '3 Major Package Support Plan' for small business owners."

He added, "Since the fiscal year has not yet started, I believe the priority is to execute the 3 Major Package Support Plan for small business owners announced last week as quickly as possible."