Hong Nam-ki, Deputy Prime Minister, "Oppose Nationwide Support... Do Not Think Fiscal Policy Should Follow Politics"

Hong Nam-ki, Deputy Prime Minister for Economic Affairs, attended the full meeting of the Planning and Finance Committee held at the National Assembly on the 13th and is checking materials before giving a proposal explanation related to the 2nd supplementary budget. Photo by Yoon Dong-ju doso7@

[Sejong=Asia Economy Reporter Kim Hyunjung] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki expressed opposition to the nationwide support payment agreed upon by the ruling and opposition parties.

On the morning of the 13th, Deputy Prime Minister Hong Nam-ki attended the full meeting of the Planning and Finance Committee held at the National Assembly. When asked by lawmakers about the agreement reached the previous day between the ruling and opposition party leaders on the nationwide disaster relief payment, he said, "I do not agree," adding, "I hope the support framework (for the 2nd supplementary budget) submitted by the government after careful consideration will be respected by the National Assembly." He further explained, "As COVID-19 has lasted for one and a half years causing damage, the government has prepared a support plan for the bottom 80% income bracket after much deliberation," and added, "Regarding the damage to small business owners, the government has been trying to provide maximum support within its capacity through four supplementary budgets last year and the first and second supplementary budgets this year."

When Woo Won-sik, a member of the Democratic Party of Korea, argued, "Politics paves the way, and the government should follow the path laid out," Hong countered, "I do not think fiscal management should follow decisions made politically." He also explained, "Both last year and this year, our (fiscal) deficit is 100 trillion won," and added, "Based on income brackets, the bottom 20% had negative income last year, while the top 20% did not experience a decrease."

On the issue of nationwide support, lawmakers expressed mixed opinions. Kim Tae-heum of the People Power Party pointed out, "Small business owners are almost in a critical state and need more support," and criticized, "Large corporations, public officials, and our National Assembly members did not experience income reductions." After questioning, "Is this fair?" Kim added, "The supplementary budget should be limited to loss compensation or livelihood support."

On the other hand, lawmaker Woo Won-sik argued, "The reason for maintaining a sound national debt ratio is to use it in times of crisis," and stated, "We should not just talk about increasing debt without using it during crises." Woo emphasized, "They say 2 trillion won will be used to repay debt, but even if all is spent, it is insufficient; how can we repay debt then?" He stressed, "Even if the 250,000 won for 80% is reduced to 200,000 won, it should be given to all citizens." He then addressed the Deputy Prime Minister, saying, "If the National Assembly decides on nationwide support payments, you should follow that and accept the National Assembly's decision," adding, "It should not reach a point where the National Assembly cannot decide due to government opposition."

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