IMF Fiscal Director: "South Korea's Fiscal Rules Are a Task That Cannot Be Delayed"

Choi Sang-dae, Vice Minister of Strategy and Finance, is meeting with Victor Gaspar, Director of the IMF Fiscal Affairs Department (FAD), at the Government Seoul Office in Jongno-gu, Seoul, on the 16th.

[Asia Economy Sejong=Reporter Song Seung-seop] Victor Gaspar, Director of the Fiscal Affairs Department at the International Monetary Fund (IMF), emphasized that "the introduction of fiscal rules in Korea is a task that should not be delayed."

On the 16th, Director Gaspar met with Choi Sang-dae, Vice Minister of Strategy and Finance, at the Government Seoul Office and stated, "Despite difficult conditions such as high inflation, high interest rates, and economic slowdown, I highly appreciate the Korean government's efforts to introduce fiscal rules to ensure fiscal sustainability."

Director Gaspar also cited research results showing that countries that introduced fiscal rules improved their fiscal balance and stabilized national debt more quickly. This research refers to a report published by the IMF in October 2021. The analysis of 55 countries from 1970 to 2018 concluded that countries with fiscal rules stabilized their debt at a faster pace during crises.

He added, "To ensure the effectiveness of fiscal rules, they must be legislated by the National Assembly," and said, "I will continue to pay close attention to the legislative trends regarding Korea's fiscal rules." Regarding Korea's fiscal stance, he stated, "It aligns with global standards," and added, "It was an opportunity for the IMF to show its support."

Vice Minister Choi also explained the recent progress in the government's legislative efforts. He responded, "The legal basis for fiscal rules is still under review in the subcommittee of the National Assembly's Strategy and Finance Committee," and said, "We will do our best to ensure that fiscal rules are legislated as soon as possible."

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