Hong Nam-ki: "The National Treasury Is Running Low... Steps to Normalize Must Begin from 2023"

June 6 National Assembly Budget and Accounts Special Committee Comprehensive Policy Inquiry
"Rapid Increase in Debt... Inevitable Aspects Present"
"Absolute National Debt Is Stable... Compensation Payments Proceeding Without Issues"

Hong Nam-ki Responding at the Budget and Accounts Committee
(Seoul=Yonhap News) Jin Seong-cheol reporter = Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is responding at the plenary meeting of the Special Committee on Budget and Accounts held at the National Assembly in Yeouido, Seoul on the 6th. 2021.9.6 [Photo by National Assembly Press Photographers Group]
zjin@yna.co.kr
(End)

＜Copyright(c) Yonhap News Agency, Unauthorized reproduction and redistribution prohibited＞

[Asia Economy Reporter Lee Junhyung] Hong Namgi, Deputy Prime Minister for Economy and Minister of Strategy and Finance, emphasized on the 6th that "the nation's treasury is running empty."

Deputy Prime Minister Hong made this remark during the comprehensive policy questioning at the Budget and Accounts Special Committee on the same day. Go Minjung, a member of the Democratic Party of Korea, pointed out that the scale of COVID-19 fiscal support relative to South Korea's gross domestic product (GDP) is lower compared to advanced countries, asking, "The fiscal authorities talk about fiscal soundness, but shouldn't funds be available when people actually need them?"

In response, Deputy Prime Minister Hong said, "Each country's conditions and situations are different," adding, "Even in terms of confirmed cases, we have fewer than 500 per 100,000 people, whereas the US, UK, and France have 10,000 per 100,000." He further explained, "These countries have been hit so hard that their fiscal scale inevitably has to be larger."

When Representative Go asked, "Do you think the Hope Recovery Fund provided to small business owners and self-employed individuals is sufficient?" Hong replied, "Considering their pain and damage, government support is not satisfactory," but added, "Still, the government has made every effort through six supplementary budgets and other measures."

When Lee Taegyu of the People's Party pointed out that next year will mark the era of 1,000 trillion won in national debt, Hong responded, "I think the pace of debt increase is steep." This is interpreted as an expression of concern about national debt. Hong said, "There was an unavoidable aspect of fiscal roles to overcome COVID-19 last year and this year," adding, "(Currently) we are moving toward expansionary fiscal policy, but normalization steps should be taken after next year." He continued, "Our absolute national debt level is less than half that of advanced countries, so it is relatively sound," and added, "Nevertheless, the government is aware of the rapid pace of increase."

Deputy Prime Minister Hong also expressed his position to ensure the smooth payment of loss compensation for small business owners. He said, "If the loss compensation for next year is insufficient, we will use the existing budget or contingency funds to ensure the calculated compensation is paid without fail."

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