Vice Minister Ki Jae: "Tapering Issue's Impact Limited... Caution on Potential Expansion"

Macroeconomic and Financial Meeting Held on the 31st

"Easing Burden on Vulnerable Borrowers Amid Interest Rate Hikes... Steadily Advancing 6 Trillion Won Loans and More"

Lee Ok-won, First Vice Minister of Strategy and Finance, delivering a keynote speech at the 'Macroeconomic Finance Meeting' held on the 31st at the Bankers Hall in Jung-gu, Seoul. (Photo by Ministry of Strategy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] Lee Okwon, First Vice Minister of Strategy and Finance, stated on the 31st, "Although the impact of the tapering (asset purchase reduction) issue is still limited, we will maintain a vigilant stance and continuously monitor the movements of global monetary authorities and trends in the global financial market."

Vice Minister Lee held a macroeconomic and financial meeting at the Bankers' Hall in Seoul on the morning of the same day and said, "Since uncertainties due to the resurgence of COVID-19 remain, it is more important than anything else to quickly block the resurgence, support damage recovery, and continue the momentum of economic recovery."

He assessed that Federal Reserve (Fed) Chair Jerome Powell's speech at the Jackson Hole meeting did not have a significant impact on the global financial market. However, he noted that uncertainties regarding U.S. tapering have not completely disappeared. He explained, "As U.S. employment indicators, which will serve as a gauge for tapering, are released and the tapering schedule is concretized, the possibility of increased volatility in the financial market cannot be ruled out."

He also announced that policy efforts will be focused on stabilizing prices during the Chuseok holiday and supporting vulnerable groups such as small business owners. He added, "We will continue our efforts to stabilize prices during the Chuseok holiday period and alleviate difficulties faced by vulnerable groups. We plan to increase the supply of Chuseok seasonal goods by more than 25% compared to last year, and for small business owners and SMEs facing difficulties, we will reliably support the extension of social insurance and utility bill payment deferrals for October to December by three months, as well as the extension of VAT and comprehensive income tax payment deadlines by three months (January to February next year)."

He also mentioned maintaining an expansionary fiscal policy stance to continue supporting vulnerable groups affected by COVID-19. Vice Minister Lee said, "We will minimize fiscal underutilization and aim to achieve a record-high total expenditure execution rate of over 98%, proactively inspecting and resolving obstacles. We will also make every effort to flawlessly execute the COVID-19 coexistence national support fund of 250,000 won per person."

Financial policies will also focus on market stabilization and support for vulnerable borrowers. Vice Minister Lee stated, "We will expand policy and microfinance supply to reduce the burden on low-income groups and vulnerable borrowers such as small business owners and SMEs who are vulnerable to rising interest rates. We will steadily promote refinancing loan support and emergency loan funds amounting to 6 trillion won prepared through the second supplementary budget."

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