Departing Hong Nam-ki: "Steep National Debt, Time Is Not on Our Side... Hope the New Government Will Make Efforts"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance [Image source=Yonhap News]

[Asia Economy Sejong=Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, who concluded his "37 years of public service," said on the 9th, "As the role of fiscal policy increases and fiscal soundness weakens like the law of action and reaction, international organizations and credit rating agencies are viewing (South Korea's) fiscal sustainability more critically," adding, "I ask the new government to promptly institutionalize fiscal rules into law and to pay more meticulous attention to medium-term fiscal management."

At the farewell ceremony held at 11 a.m. at the Government Complex Sejong, Deputy Prime Minister Hong addressed fiscal issues, stating, "The role of fiscal policy inevitably expanded during the process of overcoming the COVID-19 crisis, which inevitably led to a rapid increase in national debt," and added, "Considering the aging trend, time is certainly not on our side."

Deputy Prime Minister Hong concluded his 37-year public service career with this farewell ceremony. Having served as Deputy Prime Minister for over three and a half years, he became the longest-serving economic chief in history. Reflecting on the past three and a half years, Hong said, "It was a continuous journey of hardship where we could not afford to relax even for a moment due to global economic recession, Japan's unfair export restrictions, and the outbreak of the COVID-19 pandemic," but he also self-assessed, "However, we performed better than any other country in protecting both quarantine and the economy."

However, he noted, "There are unfinished tasks and significant regrets that remain deeply in my heart as 'calluses left from burning pain' as I step down," citing the real estate issue as a representative example. Hong said, "Due to various complex factors, the real estate market was not sufficiently controlled," and reflected, "Fortunately, the market has recently stabilized downward, but it remains an area of great regret." He also urged the next economic team, "Going forward, the downward stabilization trend in the market must be firmly established."

Hong also emphasized, "As we return to normal life after overcoming COVID-19, normalizing the policies implemented so far is also a task," and added, "Especially in the fiscal area, restoring fiscal sustainability is an important challenge."

He further stated, "With the recent rapid changes in the global economic environment, domestic and external risk factors are overlapping, inflationary pressures are intensifying, and the situation our economy faces is becoming increasingly complex and severe," expressing regret, "It feels heavy to leave these challenges as unfinished tasks."

Finally, Hong urged the Ministry of Economy and Finance officials, emphasizing "Daegwan Sochal (大觀小察)," meaning "to observe the big picture with a broad perspective while carefully examining the small details," and said, "You must have these two lenses when viewing policies." He added, "Do not narrowly limit your work to only 1/N of the responsibilities, but make efforts to strengthen collaboration and cooperation with other departments, ministries, and even the private sector."

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