Hong Nam-ki "Continue Active Fiscal Role"... Yoon Ho-jung "Expansionary Fiscal Policy Until COVID Ends"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] At the National Fiscal Strategy Meeting chaired by President Moon Jae-in, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced that the government will continue the active role of fiscal policy. Yoon Ho-jung, floor leader of the Democratic Party of Korea, also emphasized the need to maintain expansionary fiscal policy until the end of the COVID-19 pandemic.

Park Kyung-mi, spokesperson for the Blue House, stated that on the 27th, from 2 p.m. for two hours, President Moon presided over the '2021 National Fiscal Strategy Meeting' by connecting the Government Seoul Office and Sejong Office via video at the Blue House Yeomin 1 Building.

On this day, President Moon delivered opening remarks with the main point that 'expansionary fiscal policy should be maintained at least until next year.'

Following the opening remarks, Deputy Prime Minister Hong reported on the 'Medium-term (2021-2025) fiscal management and 2022 budget formulation direction for complete economic recovery and robust national finances.'

At the meeting, Deputy Prime Minister Hong emphasized, "We will continue the active role of fiscal policy to achieve the complete end of COVID-19, solidify economic recovery, and leap forward as a leading nation, while establishing a medium-term fiscal management direction to ensure the sustainability of fiscal policy in the mid to long term."

During the subsequent discussion, participants proposed ▲maintaining the expansionary fiscal stance until 2022 ▲active roles of each ministry for expenditure structure innovation ▲promotion of fiscal strategies that share roles among fiscal policy, private sector, and policy finance for carbon neutrality ▲active promotion of regional balanced New Deal ▲and accelerated discussions on the second phase of fiscal decentralization.

They also identified priority areas for fiscal investment as ▲addressing educational disparities caused by COVID-19 ▲nurturing core talents in new industries ▲establishing a global vaccine hub ▲and emphasized the importance of responding to low birth rates.

After the discussion, Floor Leader Yoon said, "We must strengthen innovative inclusive strategies and maintain the expansionary fiscal stance until we completely overcome the COVID-19 crisis," adding, "The party will actively support this."

Prime Minister Kim Boo-kyum stated, "Bold investment in domestic vaccine technology development (R&D) and health sector investment are necessary," and added, "To prevent the recovery pattern from becoming a 'K-shaped' recovery after returning to normalcy from the COVID-19 crisis, it is essential for cabinet members to listen to voices from the field and strive for institutional improvements."

In his closing remarks, President Moon expressed gratitude for the efforts of the fiscal authorities and various ministries and committees that prepared the meeting, and emphasized, "Let us unite government capabilities for complete economic recovery and leap forward as a leading nation."

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