Party and Government: "Domestic Demand and Livelihoods Are Difficult... Next Year's Budget Will Be Executed Unprecedentedly Quickly" (Update)

Party-Government Meeting Discusses Tourism Revitalization and Early Execution of Fiscal Budget
No Statement on Supplementary Budget Yet

To revive the sluggish domestic economy following the declaration of martial law, the ruling party and government have decided to expedite the execution of the Ministry of Land, Infrastructure and Transport's budget in the first half of the year. The government plans to implement domestic livelihood projects particularly swiftly to stabilize living costs and ease the financial burden on low-income households. However, it is reported that there was no 'statement of position' regarding the preparation of supplementary budgets.

On the 27th, members of the People Power Party, government officials, and representatives of small business owners held the 'Domestic Economy Revitalization Party-Government Consultative Meeting' at the National Assembly. The party and government prepared measures for livelihood stabilization, including early fiscal execution and tourism promotion.

Kim Sang-hoon, chairman of the People Power Party's Policy Committee, said after the meeting, "We share the recognition that domestic demand and livelihoods may face increased difficulties amid growing internal and external uncertainties, and we have agreed to strengthen policy efforts for a swift recovery of the domestic economy and stabilization of livelihoods." He added, "To revitalize the domestic economy, we will push for unprecedented speed and scale in the rapid execution of domestic livelihood projects."

In this regard, the party and government decided to expedite the execution of more than 36 trillion won out of the 59 trillion won budget for the Ministry of Land, Infrastructure and Transport in the first half of next year to boost construction investment and regional economic recovery. Over 12 trillion won will be spent on social overhead capital (SOC) such as roads and railways in the first half, and 12.7 trillion won will be swiftly invested in budgets for housing-vulnerable groups. Construction of 70,000 public housing units will commence, with 19,000 units scheduled to start in the first half. The local housing market, which is facing difficulties due to unsold units, will also be actively supported through CR REITs and tax incentives.

Choe Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, is speaking at the Domestic Economy Revitalization Democratic Party-Government Council held at the National Assembly on the 27th. Photo by Kim Hyun-min

The Ministry of Economy and Finance stated that it will revise fund plans and utilize policy finance to execute the budget for domestic livelihood projects at the fastest pace ever in the first half of the year. To stabilize living costs and ease the financial burden on low-income households, 11.6 trillion won will be supported next year, and over 90% of 1.24 million direct jobs, including senior citizen jobs, will be rapidly filled in the first quarter.

To support small business owners and self-employed individuals, the discount rate for digital Onnuri gift certificates during the Lunar New Year holiday will be increased from 10% to 15%, and the use of Onnuri gift certificates, totaling 5.5 trillion won?the largest ever?will be promoted.

Regarding tourism consumption activation, aggressive and comprehensive safe tourism promotion marketing will be carried out, and major mega-events such as the Korea Grand Sale will be held in the first half of the year. Accordingly, the Korea Grand Sale will take place in January and February next year, Beyond K-Festa in June, and the Korea Beauty Festival in June and July. Additionally, to promote tourism, the temporary visa waiver will be extended, and visa fee waivers will be extended for six countries including China and Southeast Asia.

Meanwhile, when asked by reporters whether supplementary budgets were discussed, Chairman Kim only stated, "The party and government have not made any statements." Regarding possible interest rate cuts as part of economic stimulus measures, he only mentioned, "Since it is related to exchange rate volatility, we expect the government to make a cautious judgment."