US Corporate Tax Increase, Inflation, Interest Rate Risks... Hong Nam-gi: "Inflation Will Be Thoroughly Managed"

Fiscal Policy Effective for Economic Stimulus... Inflation and Interest Rate Risks
Also Focus on Foreign Capital Flow Fluctuations

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance, stated, "We will thoroughly manage potential external risk factors such as recent global inflation concerns and fluctuations in foreign capital flows."

Deputy Prime Minister Hong made these remarks on the 17th at the Ministry of Economy and Finance in Sejong during the Foreign Economic Ministers' Meeting and the Foreign Economic Cooperation Fund Management Committee.

Hong emphasized, "It is essential to thoroughly manage external risk factors in the second half of the year to support the rapid domestic economic recovery."

On the same day, the Ministry of Economy and Finance analyzed that, regarding the Biden administration's economic policies, fiscal policy acts as an upward factor, while corporate tax increases, the full onset of inflation, and interest rate hikes are downward risks.

Accordingly, the Ministry stated that it must proactively prepare for tax and environmental issues such as the global minimum corporate tax and digital tax proposed by the Biden administration and respond to the possibility of rising interest rates.

The Ministry assessed that the Biden administration's economic policy pursues a "big government" approach characterized by large-scale fiscal spending and tax increases. Along with this, it analyzed that the policy shifts away from past government non-intervention toward fostering key industries and manufacturing sectors important for economic growth and security.

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