Choo Kyung-ho: "Government Tax Reform Plan Differs from UK... It Has Been Evaluated by the Market"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kwon Haeyoung] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said on the 21st that "next year's budget and tax reform plan have already been evaluated by the market," and that the situation is different from the UK, where the Prime Minister resigned after pushing for tax cuts.

At the National Assembly's Planning and Finance Committee audit on the same day, Deputy Prime Minister Choo responded to criticism that the UK cabinet collapsed due to reckless tax cuts by saying, "We are different from the UK's increased spending and tax cut program."

He explained, "The UK not only implemented tax cuts but also had large-scale fiscal spending," adding, "They announced a spending plan close to 200 trillion won, which raised concerns about fiscal soundness, and this impact was transmitted to the financial market." He continued, "When we presented the budget and tax reform plan, the market had already evaluated them," emphasizing, "There were some positive evaluations, and from the market's perspective, there was no direct volatility."

UK Prime Minister Liz Truss resigned on the 20th (local time) due to the aftermath of a tax cut plan worth 45 billion pounds (approximately 72 trillion won) announced last month. The value of the British pound plummeted to an all-time low, and UK government bond yields soared (bond prices fell), shaking the financial market.

Deputy Prime Minister Choo said, "I agree that the UK's case should be taken as a lesson," and added, "It strengthens our determination to reinforce the fiscal soundness policy."

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