Promoting Tourism to Boost Domestic Demand and Consumption
"Comprehensive Healthcare Reform Must Never Stop"
Prime Minister Han Duck-soo explained on the 3rd that "now is not the stage to discuss a supplementary budget" in relation to the possibility of drafting an additional supplementary budget for next year. He also stated that amid ongoing concerns about the real economy, each government ministry has "officially started (preparing measures)" to stimulate domestic demand.
Prime Minister Han made these remarks during the 44th press corps back briefing held at the Government Complex Sejong on the same day.
Prime Minister Han Duck-soo speaking at the Prime Minister's Office press room in the Government Complex Sejong on the 3rd. Photo by Yonhap News
Regarding the possibility of a supplementary budget, Prime Minister Han said, "We are currently in the final stage of finalizing next year’s budget," adding, "there has never been any talk of a supplementary budget, nor is it appropriate to discuss it now." He further explained, "It would be understandable if tax revenue were increasing to manage national debt, but it is difficult to increase spending by borrowing."
As for the sluggish real economy, Prime Minister Han assessed that "domestic demand has not increased sufficiently to be satisfactory." He explained, "Consumption and investment were decent in the third quarter, but construction investment was sluggish," and added, "I suggested we look into whether there is room to further increase consumption and urged each ministry to take additional measures."
When asked whether related measures could be prepared within the year following President Yoon Suk-yeol’s request the previous day to devise proactive domestic consumption stimulation plans, he said, "All ministries are reviewing this."
Specifically, he pointed out, "I think tourism could help domestic demand and consumption." He also mentioned, "The tourism balance continues to be in deficit." Prime Minister Han explained that they are "exploring various measures, including revitalizing tourism," to stimulate domestic demand.
Regarding forecasts that next year’s economic growth rate will fall to the 1% range, he evaluated that this is due to external factors such as geopolitical risks. He also explained that the global economy is in a similar situation.
Prime Minister Han said, "Goldman Sachs predicted next year’s economic growth rates to be 1.8% for Korea, 1.8% for the United States, 1.3% for Japan, and 0.8% for the European Union (EU)," adding, "Korea and the U.S. have the highest growth rates among advanced countries."
Regarding medical reform, he said, "Adjusting medical school quotas is an important part of overall medical reform, but I do not think it is a situation that blocks all (issues)." He emphasized, "We will continue to have dialogue with the medical community," and stressed, "Overall medical reform must never be stopped."
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