Vice Minister of Economy and Finance: "Fiscal Vision 2050 Actively Reflects Youth Generation's Opinions"

[Asia Economy Sejong=Reporter Dongwoo Lee] The Ministry of Economy and Finance announced on the 13th that Vice Minister Choi Sang-dae discussed key issues such as the youth generation, pensions, low birthrate, and balanced development in relation to the 'Fiscal Vision 2050' to be established in the first half of this year.

At the 'Fiscal Vision 2050 Future Generation Meeting' held at the Agricultural Technology Center in Gwangju, Jeonnam, on the morning of the same day, Vice Minister Choi said, "We will create a foundational environment so that young farmers and small business owners, who will play a 'central role' in Korea 30 years from now, can grow stably in their regions."

The Fiscal Vision 2050, promoted by the government, is a mid- to long-term plan to restore the deteriorated national fiscal soundness. The direction of Fiscal Vision 2050 can be summarized into four main points: ▲redefining the fiscal policy paradigm ▲disclosing mid- to long-term fiscal risks based on long-term fiscal outlook until 2070 ▲discovering reform tasks to overcome fiscal risks and cure fiscal maladies ▲presenting fiscal soundness goals for 2050.

According to the 'Monthly Fiscal Trends January 2023' released by the Ministry of Economy and Finance the day before, as of the end of November last year, the national debt stood at 1,045.5 trillion won, an increase of 7.3 trillion won compared to the previous month. The national debt increased by 310.5 trillion won over five years from 660.2 trillion won in 2017, when the Moon Jae-in administration began, to 970.7 trillion won in 2021. Last year, the national debt surpassed 1,000 trillion won for the first time in history, and it is expected to exceed 1,100 trillion won this year.

According to the Korea Development Institute (KDI), if the current fiscal policy stance continues, the national debt-to-GDP ratio is expected to approach 150% by 2060 from around 50% this year. This is why the government is focusing on establishing Fiscal Vision 2050 while exchanging opinions with various sectors of society.

Vice Minister Choi Sang-dae Presiding Over the 8th Contribution Management Deliberation Committee
(Seoul=Yonhap News) Vice Minister Choi Sang-dae of the Ministry of Economy and Finance is presiding over the 8th Contribution Management Deliberation Committee for 2022, held on the 20th at the Korea Fiscal Information Service in Jung-gu, Seoul. 2022.12.20 [Provided by the Ministry of Economy and Finance. Redistribution and DB reproduction prohibited]
Photo by Yonhap News
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In the process of establishing the fiscal vision, the government has been holding meetings with youth groups from various occupations and regions since October last year to particularly gather opinions from the younger generation. This meeting was the eighth of a total of ten planned sessions and was held in Gwangju with young farmers and small business owners.

The young participants continued discussions on topics of high interest to the youth generation, such as pensions and low birthrate measures. A young farmer present said, "Considering the characteristics of the younger generation who value quality of life, a new support model is needed that allows them to engage in agriculture while living in the city," and a young small business owner expressed anxiety, saying, "After enduring the long and difficult COVID-19 crisis, we are now facing inflation and a recession."

In response, Vice Minister Choi emphasized, "We will strive to improve settlement conditions by providing settlement support funds for initial livelihood stabilization, long-term farmland leases, and expanding the creation of rental housing complexes to support young farmers." He also stated plans to provide low-interest policy fund loans necessary for emergency management for small business owners.

Furthermore, the government added that opinions gathered during the meeting will be reflected in the establishment of Fiscal Vision 2050 and that it will continuously listen to the views of the younger generation.