[2024 National Audit] Lee Chang-yong "Do Not Agree with Economic Recession... No Need for Comprehensive Stimulus Measures"

Lee Chang-yong, Governor of the Bank of Korea, stated, "I do not agree with the claim that our country's economy is in a recession," and added, "A comprehensive fiscal stimulus through government spending is not necessary."

Bank of Korea Governor Lee Chang-yong is responding to lawmakers' questions during the audit of the Ministry of Economy and Finance and the Bank of Korea at the Planning and Finance Committee of the National Assembly held on the 29th.

Governor Lee made these remarks on the 29th during a comprehensive audit by the National Assembly's Planning and Finance Committee held at the National Assembly in Yeouido, Seoul, in response to opposition party lawmakers' criticism that "the economic recession is persisting due to improper use of fiscal policy."

He said, "Even considering the third quarter's Gross Domestic Product (GDP) growth rate figures, it is higher than the potential growth rate," and emphasized, "A full-scale economic stimulus is not necessary."

He added, "However, partial support is needed for difficult sectors such as self-employed individuals and the construction industry," but cautioned, "If aggressive stimulus measures are taken through interest rates and other means, unintended side effects may occur."

Regarding the rise in loan interest rates despite the base rate cut, he explained, "Warnings have been issued about household debt and real estate prices, so we are cooperating with banks to reduce loans," and stated, "(The increase in loan interest rates) is a phenomenon that has appeared during this process, and I believe it will normalize again once household loans and others stabilize."