Choe Sang-mok Deputy Prime Minister: "Time for Government's Active Role... Doing Our Best for Early Budget Execution"

Revealed at the Press Conference on the 23rd

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, stated regarding the supplementary budget bill (추경) for economic response in the first quarter of next year, “I agree with the recognition that the government needs to play an active role,” and added, “First, we will push for budget allocation before the start of the fiscal year from January 1 next year so that the budget can be implemented early.”

At a press briefing held at the Government Complex Sejong on the 23rd, Deputy Prime Minister Choi responded to a question about the supplementary budget discussion amid the ongoing impeachment crisis against President Yoon Seok-yeol. He said, “I have a sense of urgency that the government needs to play an active role because people’s livelihoods are difficult in many ways and domestic and external uncertainties are increasing.”

Deputy Prime Minister Choi emphasized that since next year’s budget bill has passed the plenary session, the priority is to ensure that budget allocation is implemented promptly. He stressed, “The priority is to do our best so that the budget can be implemented immediately from January 1,” and added, “We are pushing for about 11.6 trillion won in allocation before the start of the fiscal year so that it can be implemented from January 1.”

He explained, “This did not happen in the past two years,” and said, “With allocation before the start of the fiscal year, unlike last year and the year before last, 11.6 trillion won will be added, with 3.9 trillion won executed in the welfare sector and 4.4 trillion won in social overhead capital (SOC). Previously, national road construction and railway construction, which were executed in the second quarter, can now be executed within the first quarter.”

He said, “We plan to execute about 3 trillion won in discretionary subsidy spending,” adding, “That makes a total of 14.6 trillion won.” Deputy Prime Minister Choi further explained, “Including all the measures I mentioned, I think it is a priority to strongly play the role of finance in the first quarter through changes in fund operation plans that are not reflected in the budget.”

Regarding Bank of Korea Governor Lee Chang-yong’s emphasis that “the supplementary budget bill must be passed with bipartisan agreement,” Deputy Prime Minister Choi said, “The Bank of Korea Governor gave his opinion on fiscal policy because he is conducting monetary policy from a macroeconomic policy perspective.” He added, “We will listen carefully to his opinion, but we will refer to it when discussing appropriate measures depending on next year’s situation.”

When asked whether the government’s fiscal management policy, which emphasized a sound fiscal stance, was insufficient for economic response, he replied, “It was not insufficient; the fiscal response is changing because the situation has changed,” and said, “I believe it is time for fiscal policy to play an active role to respond to uncertainties.” He also emphasized, “Rather than using the term ‘sound fiscal policy,’ I have often used the term ‘fiscal sustainability,’” and added, “Fiscal sustainability is a value that cannot be ignored at any time.”