Park Wanju: "Next Year's Budget Will Follow an Expansionary Fiscal Policy... Continuing the 8-9% Increase Trend"

Park Wan-joo, Chairman of the Policy Committee of the Democratic Party of Korea, is delivering opening remarks at the Policy Coordination Meeting held at the National Assembly on the 5th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Koo Chae-eun] Park Wan-joo, the Policy Committee Chair of the Democratic Party of Korea, stated on the 17th that discussions on next year's budget are being conducted "based on an expansionary fiscal policy as the fundamental stance."

At a meeting held at the National Assembly that day, Chair Park said, "This year's main budget (558 trillion won) increased by 8.9% compared to the previous year, with recent growth rates around 8-9%. I expect a similar growth rate this time as well." He added, "Since it is uncertain whether COVID-19 will be completely eradicated next year, the party and government are discussing various sectors including economic recovery, economic growth, national debt, and support for vulnerable groups."

Regarding reports that the government is pushing for a 7.5% increase, he said, "It is not appropriate to discuss now what the party and government will finally agree on." He further explained, "If the difference is 0.5 percentage points, that amounts to 2.8 trillion won, which is not a small amount." Chair Park said, "We need to finalize the decision within August and send it to the National Assembly in September, so the party and government are in the final stages of adjustment." He added, "Once the budget work is completed, the Policy Committee will accelerate the development of party pledges to prepare for visible policy outcomes around the end of September."

Regarding preparations for the ruling-opposition-government consultative body, Chair Park said, "The parties have exchanged agendas, but no agreement has been reached yet." He continued, "Originally, the goal was to hold it on the 19th or 20th, but it was delayed due to the intervening holiday." He added, "Once the agenda is adjusted, the schedule will be finalized," and said, "We are consulting with a sense of urgency."

On real estate legislation, he stated, "The amendment to the Comprehensive Real Estate Tax Act is likely to be processed within this month, and discussions on the capital gains tax reform will begin at the end of this month, aiming for the first passage in September." He also added, "Regarding issues with rental housing operators and the three rental housing laws, the Policy Committee is conducting in-depth reviews of the current status, achievements, and problems with the relevant ministries."

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