[22nd Rising Star](23) Ando Geol "Fiscal Soundness Is Not Just About Spending Restraint"

Economic Expert Former Budget Office Director and 2nd Vice Minister of the Ministry of Economy and Finance
"Increasing Government Spending to Revitalize Domestic Demand Is the Top Priority"
Proposed 'National Land Grand Remodeling Act' Bill to Address Polarization

"It is not enough for the government to simply restrain spending to secure fiscal soundness."

Ando-geol, a member of the Democratic Party of Korea who entered the National Assembly representing the 'Gwangju Dongnam-eul' district, said in an interview with Asia Economy on the 12th, "Rather, when the economy is in a downturn like now, the government should stimulate domestic demand to revitalize the economy, which will also restore fiscal soundness." Ando-geol is an economic expert and budget specialist who served as the Budget Director and Second Vice Minister of the Ministry of Economy and Finance under the Moon Jae-in administration.

He pointed out that the excessive fiscal tightening by the Yoon Seok-yeol administration is the fundamental cause of fiscal deterioration. He explained that the vicious cycle of 'fiscal tightening → domestic demand deterioration → tax revenue decrease → fiscal deficit' continues. Ando-geol said, "Last year, despite a record-breaking shortfall in tax revenue, the government operated an excessively tight fiscal policy, resulting in an unprecedented unused budget of 45.7 trillion won," adding, "As a result, both growth and the size of the government shrank." Unused budget refers to the difference when the amount executed is less than the amount allocated in the expenditure budget. In other words, the government prepared the necessary budget but restrained spending.

Regarding the economic outlook for the second half of the year, Ando-geol said, "The export growth centered on the semiconductor industry is expected to continue," but added, "The polarization gap resulting from this is likely to widen further," emphasizing, "Government support measures for the common people's economy, such as the activation of e-commerce, are urgently needed."

Ando Geol, a member of the Democratic Party of Korea, is being interviewed by Asia Economy at the National Assembly on the 12th. Photo by Kim Hyun-min kimhyun81@

Ando-geol’s first legislative proposal, the 'National Land Grand Reconstruction Act,' also originated from concerns about resolving regional social polarization. He pointed out, "The biggest problem in the national economy lies in the excessive influx of young people into the Seoul metropolitan area," adding, "Issues such as housing prices, education, low birth rates, and regional extinction caused by metropolitan overpopulation are all interconnected." He further argued, "The key to enabling young people to establish workplaces and homes in local areas is to foster high value-added industries," and stated, "For example, the government should create a policy package that provides exceptional incentives to outstanding science and technology personnel relocating to local regions."

As a revitalization plan for Gwangju, selected as a region of concern due to population decline, he cited the development of artificial intelligence (AI), bio, and cultural tourism industries. Ando-geol said, "I will focus my local legislative activities on laying the foundation to create an environment where young talents can come and start businesses."

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