[Yeouido Interview] Kim Sang-hoon, Chair of the Finance Committee: "Statistical Distortion Is a Serious Crime... Uncovering the Truth in the National Audit"

Interview with the Chairman of the National Assembly's Planning and Finance Committee
Legislative Activities Prioritizing Practical Benefits over Rhetoric
"Current Government Has No Vote-Buying Budget... Increase Seems Difficult"

"Distorting statistics that form the basis of national policy-making is a serious criminal act."

Kim Sang-hoon, Chairman of the National Assembly's Planning and Finance Committee, recently criticized the audit results released by the Board of Audit and Inspection on the 15th regarding the manipulation of national statistics during the Moon Jae-in administration in an interview with Asia Economy. He stated, "The former Statistics Korea Commissioner’s remark, ‘We will repay with good statistics,’ has been revealed as a nationwide fraud that could even shake the country's external credibility."

On August 27, 2018, during the Moon Jae-in administration, Kang Shin-wook, the former Commissioner of Statistics Korea, said at an economic ministers' meeting shortly after his appointment, "I will repay the ministers with good statistics for their policies," which later sparked controversy over statistical manipulation. The Board of Audit and Inspection recently announced audit results revealing that three major statistics?income-led growth, real estate prices, and employment?were distorted during the Moon administration, with involvement from the Blue House.

Chairman Kim pointed out, "The root of the statistical manipulation suspicion originated from the Moon administration continuously releasing housing price and employment statistics that were disconnected from the public's actual experience," adding, "At that time, not only experts but also the public found it hard to believe the government's statistics, which contradicted soaring housing prices and a frozen job market."

Yeouido Interview_Kim Sang-hoon, Chairman of the National Assembly's Planning and Finance Committee. Photo by Kim Hyun-min kimhyun81@

He further emphasized, "The prosecution must conduct a thorough investigation to uncover the truth, and those responsible should be severely punished," adding, "Since Statistics Korea is an agency under the National Assembly's Planning and Finance Committee, related inquiries are expected to continue during the upcoming audit, and we will strive to uncover the truth at the standing committee level."

Kim, a member of the People Power Party, is a former bureaucrat who passed the 33rd Administrative Examination and served as a public official in Daegu Metropolitan City. He ran for Daegu Seo-gu in the 19th National Assembly general election and has been elected for three consecutive terms. Elected as the chairman of the National Assembly's Planning and Finance Committee on the 1st of this month, he cited representative bills he proposed during his legislative activities, including the ‘Bad Landlord Disclosure Act,’ ‘Sharing of Seismic Patient Records between Hospitals,’ and the ‘Three Acts to Resolve Illegal Parking in Public Housing.’ He emphasized, "I have always believed it is important to identify what laws the public wants and what grievances and complaints they currently face, and to create laws, policies, and budgets that can address those issues."

In fact, Kim’s legislative activities have focused on practicality. During his three terms as a lawmaker, Kim rarely appeared prominently in the media. He served as the preparatory committee chairman for the 2020 Seoul and Busan mayoral by-elections, the head of the functional division of the People Power Party’s Central Election Committee in 2021, and a member of the emergency committee under Chairman Chung Jin-seok last year. Despite these significant roles, he is regarded as a politician who prioritized policy over political strife. Kim said, "Legislative activities that pursue only justification lead to irrational outcomes." He added, "Sometimes in politics, there is a bubble where legislation and budgeting occur not as solutions to problems but as ends in themselves, which ultimately results in waste."

Following is a Q&A with Chairman Kim.

- The reality of statistical manipulation has been revealed. Statistics Korea is an agency under the Planning and Finance Committee. How do you view this?

=It has been revealed that during the Moon Jae-in administration, the Blue House and the Ministry of Land, Infrastructure and Transport pressured the Korea Real Estate Board and Statistics Korea to manipulate real estate, income, distribution, and employment statistics. Unrealistic remarks by key figures of the Moon administration, including former Minister of Land, Infrastructure and Transport Kim Hyun-mi, who claimed housing prices rose only 11%, were the basis for data manipulation. We expect many inquiries during the audit, and the standing committee will closely examine the matter.

- The Ministry of Economy and Finance submitted a budget proposal for next year with only a 2.8% increase, the lowest since 2005.

=The Moon administration mainly issued national bonds and executed excessive budget allocations every year. As a result, national debt increased by more than 400 trillion won over the past five years, reaching 1,000 trillion won. The current government has no choice but to pursue fiscal normalization or a sound fiscal policy. Since the government holds the authority to allocate the budget, it seems this policy direction is reflected in the proposal.

- The opposition party may demand an increase in the budget during the National Assembly discussions.

=The Democratic Party is mentioning a 6% increase in total expenditure. The Budget and Accounts Special Committee will handle any increases, but currently, it seems difficult to approve an increased budget. The National Assembly can arbitrarily reduce the government’s proposed budget but cannot increase it without government consent. Since the current government’s will is very strong, it is expected that budget increases will be difficult. Also, during previous elections, the government often used budget spending, such as disaster relief funds, to win public favor, but this government appears to have no intention of using the budget for vote-buying.

- The fiscal rules bill pending in the Planning and Finance Committee is being held up by the opposition’s Social Economy Basic Act. Is there a plan to persuade the opposition?

=The public may not fully understand the contents of the Social Economy Basic Act or the fiscal rules. However, by the end of this year, the national debt per capita will increase to 22 million won, and by 2060, it will rise to 130 million won. The question remains whether we should leave such debt to our children and future generations. National bonds mature 20 years later, so the debt is not repaid by the current generation but by our children. We must save now and repay. Therefore, fiscal rules aim to regulate excessive and wasteful budget allocations to avoid burdening future generations. The Social Economy Basic Act proposed by the Democratic Party mandates the government to compulsorily purchase goods or services produced by social enterprises. Many organizations already excessively depend on government budgets. We will leave the judgment to the public.

- You have played various roles within the party. What is the most memorable?

=I was asked to serve as the floor leader during the confirmation hearing of former Prime Minister Chung Sye-kyun. Since then, I have undertaken various tasks. The most memorable was serving as the preparatory committee chairman for the Seoul and Busan mayoral by-elections. Our party faced a significant crisis then, and I believed selecting a proper candidate was most important. Although there were many discussions about the ‘primary election rules,’ I firmly drew the line to minimize party member voting weight and allow the general public to select the final candidate. The People Power Party chose metropolitan mayor candidates solely based on general public opinion polls. Candidates preferred by party members might lack competitiveness in the general election. It is important to select candidates who can win, not those favored by specific individuals.

- What kind of politician do you want to be?

=I believe I should be a practical politician. Many say I am policy-friendly. I think it is problematic to fight blindly and recklessly. It is important to propose laws that benefit the public and help in daily life. I believe this is the legislative approach that lawmakers should pursue. My aides are working hard on this.

Major achievement: Opening of Seodaegu Station... "Aiming for 4th term"

Chairman Kim cited the opening of Seodaegu Station, where the high-speed train (KTX) stops, as his greatest achievement in his constituency.

Since receiving his first parliamentary badge in 2013, Kim has advocated for the necessity of Seodaegu Station. At that time, Daegu already had Dongdaegu Station, opened in 2004, and the Ministry of Land, Infrastructure and Transport opposed the idea, insisting on a ‘one region, one station’ policy. However, through Kim’s persistent persuasion, Seodaegu Station was inaugurated in March last year, and ridership increased by 37.4% within a month. The cumulative number of users surpassed one million in nine months.

Kim said, “Three-quarters of Daegu’s industrial complexes are located in the southwestern part of Daegu, and it was very inconvenient for them to use only Dongdaegu Station,” adding, “Just as Daejeon has Daejeon Station and Seodaejeon Station, and Busan has Busan Station and Gupo Station, I persuaded that Daegu should have both Dongdaegu and Seodaegu Stations.” He expressed confidence that “the development of the Seodaegu Integrated Transfer Center will further enhance the area around the station.”

Regarding the fact that his constituency, Daegu Seo-gu, was recorded as the lowest in total fertility rate and mentioned as a ‘disappearing city,’ he expressed regret. He said, “It is true that there is a large elderly population and a declining birth rate trend,” but explained, “There were many redevelopment and reconstruction projects, which caused many temporary relocations.” He added, “Last year, 12,520 new households were supplied, and 20,000 households are expected to move in by 2026,” and “The population, which was 160,000, is expected to increase to about 175,000 this year.”

On the regional economic crisis theory, he argued that lawmakers from constituencies outside the metropolitan area must work together. Kim said, “From what I have observed, large corporations’ business sites do not tend to move south of Chupungnyeong,” adding, “They extend only to Chungnam and Chungbuk, and large corporations’ business sites are concentrated in the metropolitan area.” He continued, “We need to attract many new corporate business sites to local areas to create jobs, but since this is not happening, young generations move to the metropolitan area after graduating from university,” and added, “Enabling new business activities in local areas is a task that all lawmakers with constituencies in the National Assembly must solve, not just Daegu.”

He also expressed his intention to run for a fourth term. He said, “Even if only one day remains in my term, it is my duty to envision and plan for the future and development of the region,” and “I will confidently seek evaluation for my past legislative activities by running for a fourth term.”