Answer to Government-Related Questions on Economic Affairs in the National Assembly on the 7th
[Asia Economy Sejong=Reporter Dongwoo Lee, Sejong=Reporter Seungseop Song] Prime Minister Han Duck-soo clearly opposed the opinion that government heating cost support should be expanded on the 7th, stating, "Priority should be given to support," but also emphasized, "South Korea's fiscal policy should not be evaluated as a sloppy policy domestically and internationally."
On the same day, during the National Assembly's economic sector questioning of the government, Prime Minister Han responded to Democratic Party lawmaker Seo Young-kyo's question, "When prices rise and it is difficult, isn't it the government's role to collect taxes from the people under the Yoon Seok-yeol administration, distribute those taxes well, and support the people again when they are struggling?"
Prime Minister Han emphasized in response to Seo's demand that "as Prime Minister of the Yoon Seok-yeol government, apologize for the people's suffering due to inflation," saying, "I think we must clearly understand the cause of this," and added, "This cannot be solved with popularity-driven policies that suppress rising public utility fees." He further stated, "The government must build the country to be sound and properly recognized both domestically and internationally," and added, "I do not think a populist regime is necessary."
Focus on Heating Cost Vulnerable Groups
Prime Minister Han, in response to People Power Party lawmaker Han Mu-gyeong's question about the opinion to expand the government's heating cost support targets, said, "I think we should first focus on the vulnerable. I believe the blind spots for basic livelihood security recipients and near-poor groups have been almost resolved this time."
Prime Minister Han also opposed the opinion that a 'windfall tax' should be levied on oil refiners who recorded record-high profits amid high oil prices. He said, "I think there is a difference between other countries that have major global oil refiners performing both crude oil production and refining, and our refiners that mainly rely on refining margins for operating profits," adding, "A very cautious approach is necessary. It is not appropriate for our country," continuing his candid remarks.
No Need for Supplementary Budget
Prime Minister Han also emphasized, in response to People Power Party lawmaker Choi Joon-sik's question about plans to prepare a supplementary budget due to the heating cost crisis, "I currently think there is no need." He added, "It has only been about a month and a half since the budget was passed and execution started," and said, "The government is doing its utmost to properly execute the budget approved by the National Assembly."
Regarding the fundamental reason for the heating cost bomb, Prime Minister Han answered, "Above all, one reason is that demand for heating has increased especially this year, and there is a weather-related increase in demand." He criticized the previous government's energy policy, saying, "When factors arise, if prices were adjusted appropriately, consumers could have prepared to some extent based on price signals, but I think sufficient efforts were not made in the past few years."
Need to Prepare for Nuclear Power and Hydrogen
Regarding future plans to strengthen nuclear power, Prime Minister Han said, "Our energy supply structure has faced considerable challenges that did not exist before. It is not only about supplying cheap energy, but also about transitioning to high-quality energy to respond to climate change." He added, "Because demand for fossil fuels cannot be as high as we want and cannot be used freely, ultimately, high-quality energy must rely on renewable energy and nuclear power," emphasizing, "Using liquefied natural gas (LNG), crude oil, and coal will become impossible for our economy to operate by 2050. Therefore, thorough preparation for renewables, nuclear power, and hydrogen is essential."
Regarding President Yoon Seok-yeol's remark that all government ministries should become industrial ministries, Prime Minister Han said, "During the 2008 financial crisis, it took considerable time to understand that the problem was linked to derivatives in a complex financial situation," but added, "This time, we know the causes and countermeasures. We will use policies according to priorities when necessary." He continued, "A more important challenge is to implement policies that allow the mid-to-long term and future generations to live more comfortably and feel happiness," emphasizing, "Broadly speaking, we must maintain fiscal soundness, keep an appropriate surplus in the balance of payments, and make the national economic system productive and fair."
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