[Reporter’s Notebook] Don’t Even Think About the 'Chugyeong'

If a household's income decreases and debt increases, there are basically two choices: either secure additional sources of income or reduce expenses. However, this common sense does not apply to national finances. According to the Ministry of Economy and Finance, national tax revenue collected from the beginning of this year through April amounts to 134 trillion won, which is about 34 trillion won less than the same period last year. Nevertheless, there are calls, mainly from opposition parties, to prepare a supplementary budget (Chugyeong). Despite fiscal soundness being severely shaken, with national debt reaching 1,068 trillion won as of last year, the argument is that the government should borrow money to maintain planned expenditures and support the economy.

The government has consistently drawn a line against the possibility of a supplementary budget in the second half of the year. Deputy Prime Minister and Minister of Economy and Finance Chugyeongho has officially stated "there will be no supplementary budget" four times in the past month alone. He expressed opposition to preparing a supplementary budget at various occasions: the Asian Development Bank (ADB) annual meeting in Songdo, Incheon (May 4), the National Assembly's Planning and Finance Committee (May 22), a press briefing at the Government Complex Sejong (May 30), and the National Assembly's economic sector questioning session (June 13).

American linguist George Lakoff pointed out in his 2008 book Don't Think of an Elephant that continuous mention of an elephant ironically makes one think of the elephant. The more something is mentioned, the more it risks creating a negative image through a hardline response. Ultimately, regardless of the possibility of a supplementary budget, continuous references to it may cause the issue to be exaggerated and reproduced. This could even lead to the spread of a radical "supplementary budget inevitability" theory.

This is also why Deputy Prime Minister Chugyeongho firmly blocks debates on the supplementary budget. He states, "We will find ways to respond without increasing national debt further," and "Even if there are difficulties, we will manage finances so as not to increase debt." He leaves no room for a supplementary budget and strongly opposes it. The reason is that if the burden on national finances and national debt continues to increase unchecked, it will not only affect South Korea's national credit rating but also impose burdens on future generations.

It is uncertain how long the government can resist populist demands for a supplementary budget, especially as the general election approaches next year and pressure may intensify. However, last month's consumer price inflation rate was 3.3%, approaching the 2% range expected in the second half of the year, and the number of employed persons has increased for two consecutive months, showing momentum in the economic trend of "high in the first half, low in the second" anticipated by the government. Before deciding on a supplementary budget, it is time to observe the direction of the government's economic policy in the second half of the year.

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