Hong Nam-ki Repeatedly Draws the Line on 'Supplementary Budget Increase'... "Upholding Government Framework"

Ministry of Economy and Finance Expanded Executive Meeting

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (left), Lee Ok-won, First Vice Minister [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, reiterated his opposition on the 19th to the ruling party's call for an increase in the second supplementary budget (supplementary budget) by stating, "We will ensure that the government's supplementary budget framework is maintained."

According to the Ministry of Economy and Finance, Deputy Prime Minister Hong presided over an expanded executive meeting in the afternoon at the Government Complex Sejong with first and second vice ministers and heads of divisions and bureaus in attendance. He said, "The adjustment of figures for the second supplementary budget bill is scheduled to take place this week in the Budget and Accounts Committee, so the Budget Office should work closely with related ministries to respond promptly to the figure adjustment consultations to ensure the supplementary budget bill is finalized in the National Assembly this week." Although there are claims from the ruling party that an increase of up to 4 trillion won in supplementary budget resources is necessary, this statement is interpreted as emphasizing the position to maintain the total amount of the existing second supplementary budget bill and the overall framework, including national bond repayment, which have already been agreed upon through consultations between the ruling party and the government and submitted to the National Assembly.

However, Hong Nam-ki requested, "Since the level of quarantine has been strengthened, please review and examine the reinforcement of support for small business owners affected accordingly and the expansion of quarantine support, and also speed up preparations so that the supplementary budget can be executed as quickly as possible after its confirmation." As he stated last week in the National Assembly, some adjustments to projects are expected due to changes in the quarantine situation.

Regarding the recent case where a Grade 5 official at the Ministry of Economy and Finance was booked on charges of sexual assault and suspended from duty, he dismissed it as "an individual deviation and a case of lax discipline," but added, "It cannot be overlooked as it is a serious matter." In relation to this, the Ministry of Economy and Finance plans to conduct a special internal discipline inspection targeting the ministry and its affiliated agencies from the 26th of this month to the 8th of next month.

On the ongoing price rise trend in the real estate market, Hong said, "It appears to be the result of a complex interplay of factors such as supply and demand of actual housing, persistent speculative demand aiming for expected profits, vague anxiety and hopeful psychology, and expectations of changes in real estate policies." He ordered, "We will prepare an opportunity to clearly communicate to the public and market participants facts based on statistics, accurate judgments on the real estate market, and the government's future policy intentions."

Meanwhile, ahead of the Chuseok holiday, with prices of some agricultural, livestock, and fishery products such as eggs still soaring, Hong instructed, "We will devise and implement impactful preemptive measures such as expanding import volumes to bring egg prices back to the levels before the avian influenza (AI) outbreak or at least reduce prices to the 6,000 won range (based on 30 eggs)."

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