Hong Nam-ki: "The 4th Supplementary Budget's Key Variable Is Whether Social Distancing Level 3 Is Implemented... No Allocation for Flood Recovery"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, Press Conference on the 27th
"Social Distancing Level 3, the Most Burdensome Factor for Economic Recovery"

Deputy Prime Minister for Economy Hong Nam-ki is delivering opening remarks at the 2021 budget formulation party-government consultation held at the National Assembly on the 26th. Photo by Yoon Dong-ju doso7@

[Sejong= Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated that whether to raise social distancing to level 3 due to the further spread of the novel coronavirus infection (COVID-19) will be the biggest variable in deciding the composition of the 4th supplementary budget (supplementary budget). Regarding the raising of the distancing level, he maintained a cautious stance, saying that while it is difficult to oppose it unconditionally for quarantine purposes, it poses a significant burden on economic recovery. He also firmly stated that there will be no supplementary budget for flood damage restoration, as suggested by some quarters.

At a press briefing on the 2021 budget held at the Government Complex Sejong on the afternoon of the 27th, Deputy Prime Minister Hong responded to a question about the possibility of composing the 4th supplementary budget by saying, "Whether social distancing will be raised to level 3 depending on the increase or decrease in COVID-19 confirmed cases is the biggest variable related to the composition of the 4th supplementary budget." He explained, "If it is raised to level 3, the economic impact will likely be much more severe, so additional funding may be required to support the damage, which requires further judgment. We will decide on the 4th supplementary budget after observing the trend of confirmed cases and whether the social distancing level is raised."

Regarding political calls for the 2nd disaster relief fund payment and the 4th supplementary budget to address flood damage restoration and prolonged COVID-19 response, he drew a line, saying that careful judgment is necessary. He said, "Support for damage caused by heavy rain is fully covered by already secured budgets and contingency funds, so there is no shortage at all," adding, "At least, I would like to say that there is no need for supplementary budget expenditure for flood restoration."

He also emphasized that the government is sequentially implementing three supplementary budgets and existing budget projects as part of the COVID-19 response, with about 9 trillion won still to be executed. He explained, "A 35 trillion won 3rd supplementary budget secured various budget projects and funds to support the COVID-19 crisis, and they are already being executed," adding, "The budget is composed on the premise of execution by the end of the year, and about 8 to 9 trillion won more will be executed." He further added, "We are steadily executing the already secured budget and supplementary budget funds, such as 2 trillion won for emergency employment stabilization funds, to support groups struggling due to the COVID-19 crisis."

He clearly stated that if the situation worsens, such as the spread of COVID-19, a quarantine-centered response including the implementation of social distancing level 3 may be inevitable, but decisions should be made more cautiously considering the economic impact. He said, "From the perspective of managing the economy, if it switches to level 3, the economic damage will be extremely severe, so the implementation must be deeply reviewed and decided," adding, "However, going to level 3 itself is like two sides of the same coin closely related to economic quarantine, so it is important to control the quarantine as much as possible, and it is a situation where we cannot oppose it unconditionally." He continued, "When such discussions occur at the Central Disaster and Safety Countermeasure Headquarters meeting, we will ensure that the quarantine and economic impacts are balanced in the decision-making process," emphasizing, "If I were to speak hopefully, social distancing level 3 is the biggest burden on economic recovery."

This content was produced with the assistance of AI translation services.