[New Government Fiscal Management] Acceleration of Public Institution Asset Sales... Expansion of Private Investment from 5 Trillion to 7 Trillion Won

Government Holds '2022 National Fiscal Strategy Meeting'
Decides to Mobilize All Available Resources Beyond National Finances
Supports Vulnerable Groups by Selling Public Institution Assets
Also Promotes Sale of Idle and Unused State-Owned Properties

President Yoon Seok-yeol Discussing the New Government's National Fiscal Management Direction
(Cheongju=Yonhap News) Reporter Ahn Jung-won = On the morning of the 7th, President Yoon Seok-yeol is presiding over the 2022 National Fiscal Strategy Meeting at Chungbuk National University in Cheongju, Chungbuk, discussing the national fiscal management direction for the new government's five-year term. 2022.7.7
jeong@yna.co.kr
(End)


＜Copyright(c) Yonhap News Agency, Unauthorized reproduction and redistribution prohibited＞

[Asia Economy Sejong=Reporter Lee Junhyung] The government is set to actively proceed with the sale of public institution assets deemed unnecessary. By strengthening the linkage between national finances and private investment projects, the scale of private investment will be expanded from an annual average of 5 trillion won to over 7 trillion won.

The government announced on the 7th that it held the ‘2022 National Fiscal Strategy Meeting’ chaired by President Yoon Seok-yeol. The National Fiscal Strategy Meeting is a conference to discuss the direction of national fiscal management for the next five years under the Yoon Seok-yeol administration. Based on the discussions at this meeting, the government plans to finalize and announce the next year’s budget and the ‘2022-2026 National Fiscal Management Plan’ in early September.

The core of the national fiscal management direction discussed at this meeting is ‘fiscal innovation.’ The plan is to reform national fiscal-related systems such as the legislation of fiscal rules and to promote bold expenditure efficiency improvements to significantly enhance fiscal soundness. First, the government aims to set the national debt ratio target for 2027 at the mid-50% range and stabilize the pace of national debt increase. It also proposed improving the managed fiscal balance deficit, which was around -5% of GDP last year, to within -3%, the pre-COVID-19 level.

Trends in National Debt and Managed Fiscal Balance.
[Photo by Ministry of Economy and Finance]

The reason the government is pursuing fiscal innovation is simple. During the five years of the Moon Jae-in administration, national debt rapidly increased due to expansive fiscal management in response to COVID-19. According to the Ministry of Economy and Finance, this year’s national debt is about 1,100 trillion won. The increase in national debt during the Moon Jae-in administration was 416 trillion won, nearly 2.5 times more than the 170 trillion won increase during the Park Geun-hye administration.

It is for this reason that the government decided to mobilize all available resources outside of national finances to reduce fiscal burdens. Accordingly, the government decided to sell public institution assets deemed unnecessary, such as convention facilities, promotional centers, and idle land. The government plans to use the funds secured from selling unnecessary public institution assets for public institution investments and support for vulnerable groups.

President Yoon Seok-yeol Discussing the Direction of National Fiscal Management for the New Government
(Cheongju=Yonhap News) Reporter Ahn Jung-won = On the morning of the 7th, President Yoon Seok-yeol is presiding over the 2022 National Fiscal Strategy Meeting at Chungbuk National University in Cheongju, Chungbuk Province, discussing the direction of national fiscal management for the new government's five-year term. 2022.7.7
jeong@yna.co.kr
(End)


＜Copyright(c) Yonhap News Agency, Unauthorized reproduction and redistribution prohibited＞

The scale of private investment projects utilizing private capital for infrastructure investment will also be significantly increased. The government intends to diversify private investment project facilities, which have been centered on roads and railways, to include transportation and living infrastructure expansion, and to increase participation incentives by diversifying project methods, thereby expanding the scale of private investment from an annual average of 5 trillion won to over 7 trillion won. Additionally, the government plans to innovate the private investment management system by strengthening the linkage between national finances and private investment projects and pre-determining the targets of private investment projects.

The sale of idle national properties will also be actively pursued to secure funds. The government plans to lease closed public office buildings as commercial facilities for small business owners and redevelop idle public office buildings to create spaces for youth startups. Plans to supply new housing by utilizing unused national properties are also underway.