Ahead of Record as 'Longest-Serving Finance Minister'... Hong Nam-ki, the Deputy Prime Minister, Stands Firm

Last Year, Four Supplementary Budgets Pulled by Ruling Party with 'Hongdusami' Expression Appearing
"National Finances Are Not a Bottomless Pit," Firm Stance to Defend Supplementary Budget Increase

Deputy Prime Minister for Economic Affairs Hong Nam-ki is delivering the government's opinion on the supplementary budget bill worth 15 trillion won for the 4th disaster relief fund payment at the National Assembly plenary session on the 25th. Photo by Yoon Dong-ju doso7@

[Sejong=Asia Economy Reporter Kim Hyunjung] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki has effectively secured his first victory against the ruling party during the process of drafting the supplementary budget (supplementary budget) for COVID-19. As the supplementary budget bill submitted by the government passed the National Assembly without a large-scale increase, it is being evaluated that this puts an end to the pattern of being led by the ruling party every time the supplementary budget was drafted. The significance is even greater as this comes at a time when he is about to break the record as the longest-serving Minister of Strategy and Finance in history.

According to the National Assembly and the Ministry of Strategy and Finance on the 25th, the size of the ‘2021 1st supplementary budget’ passed in the plenary session on that day was 14.96 trillion won, about 40 billion won less than the government’s proposal (15 trillion won). Support was expanded for small business owners, the culture, tourism, and sports industries, and chartered bus drivers, increasing the budget by 1.4 trillion won compared to the government proposal, but a reduction of 1.44 trillion won due to cuts in job projects resulted in a net decrease. Earlier attempts by the ruling party to increase the budget up to 4 trillion won failed during the discussions.

This reduction approval is evaluated to be due not only to the ruling party’s opposition to expanding the supplementary budget but also to Deputy Prime Minister Hong’s effective defense. In the previous four supplementary budget drafts for COVID-19 response last year, he was repeatedly pressured by the ruling party to allow universal payments or the supplementary budget size actually increased. Because of this, the term ‘Hongdusa-mi (Hong Nam-ki + Yongdusa-mi, meaning a promising start but disappointing finish)’ emerged. He also experienced a controversy over the criteria for major shareholders in capital gains tax on stock transfers, leading to conflicts between the ruling party and the government, and even tendered his resignation, which President Moon Jae-in rejected.

During the discussions related to this supplementary budget, Deputy Prime Minister Hong unusually maintained a tough stance. Immediately after then-Democratic Party leader Lee Nak-yeon’s remark about combining universal support, he posted on his social media, saying "It is difficult to accept," "National finances are not a bottomless well," and "Better the right amount in the right place than more is better," openly opposing the idea.

Inside and outside the Ministry of Strategy and Finance, it is interpreted that his commitment to adhering to the fiscal rules, which he personally reviewed and proposed last year as a minimum safeguard for fiscal soundness, and his sense of duty as a bureaucrat about to set the record as the longest-serving Deputy Prime Minister played a role. Hong Nam-ki, who took office as Minister of Strategy and Finance on December 11, 2018, will reach 843 days in office on the 1st of next month, surpassing the previous longest-serving record of 842 days set by former Minister Yoon Jeung-hyun.

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