Won Hee-ryong Targets Lee Jae-myung: "How Will You Repay the Debt... Rightly Criticized for Populism"

"National Debt Is Definitely Not at a Comfortable Level"

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Jeju Province Governor Won Hee-ryong criticized Gyeonggi Province Governor Lee Jae-myung on the 31st, saying, “Governor Lee continues to claim that it is not a big deal even if the national debt rises by a few percentage points,” adding, “Of course, this year, due to the need for financial support amid the COVID-19 crisis, a short-term increase in the debt ratio was inevitable. The problem is if the national debt continues to increase in this manner.”

On the same day, Governor Won said on Facebook, “I want to add a word to yesterday’s post that our country’s national debt ratio is by no means at a comfortable level compared to OECD countries.”

He stated, “According to the ‘National Fiscal Management Plan’ announced by the Moon Jae-in administration this year, the national debt ratio is expected to increase to 54.6% in 2023. Considering the possibility of supplementary budgets like this year, it is highly likely to exceed 60% in four years,” and pointed out, “An increase of 5% this year may not be a big problem, but an increase of more than 20 percentage points in just four years to reach 60% is a serious threat.”

He continued, “The debt ratio that has been managed for decades is less than 40%, but in just four years, more than half of that has been used,” adding, “There is no economy on Earth that can absorb such a shock without any problems.”

Governor Won said, “The bigger problem is that people only keep repeating the argument to increase debt because it is a crisis situation, but no one talks about how to repay that debt later,” and stated, “This is the height of irresponsibility and deserves to be criticized as populism.”

He added, “If government debt increases, taxes to pay interest will increase, investment will decrease, and national credit will decline. Private productivity will fall, the economy will lose vitality, and ultimately it could lead to a fiscal crisis or national default,” and said, “It is necessary to prepare strong measures such as ‘fiscal rules’ at this opportunity.”

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