Hongkeun Park: "Supplementary Budget Should Not Be a Routine Tool... In-Depth Long-Term Study Needed on Real Estate Taxation"

Written Confirmation Hearing Responses Address Supplementary Budget and Real Estate Taxation

Park Honggeun, a member of the Democratic Party nominated as the Minister of Planning and Budget, is arriving at the hearing preparation office set up at the Korea Deposit Insurance Corporation in Jung-gu, Seoul on March 3, 2026. Photo by Dongju Yoon

Hongkeun Park, nominee for Minister of Planning and Budget, stated on March 22 that "it is not desirable for a supplementary budget to be used as a routine fiscal management tool" in response to questions about organizing an extra budget to address the Middle East crisis. Regarding discussions on real estate taxation, he added, "In order to make an accurate assessment, more in-depth and objective research from a long-term perspective is necessary."

"Supplementary Budget Should Be Appropriately Sized Within the Range of Excess Tax Revenues"

In his written answers submitted to the National Assembly's Finance and Economy Planning Committee for his confirmation hearing, Park responded to lawmakers' questions. To the question by Kwon Youngse, a member of the People Power Party, about "institutional mechanisms to prevent supplementary budgets from becoming a routine fiscal management tool," Park reiterated that it is undesirable for such budgets to become a routine measure. Regarding the requirements and criteria for organizing a supplementary budget, he explained, "With the situation in the Middle East dragging on, uncertainty is rapidly expanding across the global economy, affecting energy supply, shipping logistics, and financial markets. There are direct impacts on export companies and related industries in the Middle East, and the difficulties faced by small business owners, farmers, and fishermen—areas closely tied to the daily lives of the public—are also intensifying." He stressed, "There is a need for the government to respond proactively through fiscal intervention to prevent the recent signs of economic recovery from turning into a crisis." As key focuses of the supplementary budget, he cited ▲ easing the burden of logistics and fuel costs in response to high oil prices ▲ stabilizing the livelihoods of ordinary people, small business owners, and farmers ▲ support for exporting companies. He stated, "Given the rapidly changing situation in the Middle East, it is appropriate to focus support on vulnerable groups directly impacted."

Regarding the supplementary budget's impact on inflation, Park said, "Increasing expenditures through a supplementary budget typically leads to higher aggregate demand, which can affect inflation. However, the inflationary impact of expansionary fiscal policy and supplementary budgets can vary depending on economic conditions, the nature of expenditures, and government policy." He further evaluated, "Currently, the growth rate is below potential GDP, and given the imbalanced growth between the semiconductor and IT sectors and non-IT sectors, the inflationary impact should be limited." Regarding the appropriate size of the supplementary budget, he answered, "To minimize the impact on the government bond and foreign exchange markets, the supplementary budget should be set at an appropriate level within the range of excess tax revenue, without issuing additional government bonds."

Hyun Byung-do, the floor leader of the Democratic Party of Korea, is conversing with lawmakers Hongkeun Park and Minjung Ko during the plenary session at the National Assembly on January 15, 2026. Photo by Hyunmin Kim

"Eliminating Undue Real Estate Gains Is a Critical Policy Task"

Regarding real estate taxation, Park responded to a question from Democratic Party lawmaker Jin Sungjoon about his stance on proposals to strengthen property taxes and ease transaction taxes, saying, "There can be various opinions about the appropriate level of real estate taxation," while emphasizing the need for long-term, in-depth research. He also stated that real estate policy should be managed so that real estate serves as a place to live, not as an investment or speculative asset, with the goal of stabilizing public housing. Park added, however, "Please understand that as the nominee for Minister of Planning and Budget, it is not appropriate for me to comment on real estate tax issues, which are outside my jurisdiction," and "If necessary, I will actively cooperate and consult with the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport, which are the relevant authorities for real estate policy."

"Sugar Tax Requires Social Discussion...Public Debate Must Precede"

Regarding the role of the Ministry of Planning and Budget on undue real estate gains, Park replied, "Excessive unearned income from the real estate market widens disparities between assets, generations, and regions, and can undermine public trust in tax, fiscal, and housing policies. Therefore, eliminating undue real estate gains, as emphasized by President Lee Jaemyung, is a critical policy task." On the issue of a "sugar tax," he said, "With increasing sugar consumption, the prevalence of chronic diseases such as obesity and diabetes is rising, and the resulting social costs are also growing. This makes it necessary to have a social discussion about the need for a sugar tax." He added, "While there is public support for introducing it to improve public health, there are also concerns about increased prices for sweetened products. Therefore, a process of public debate must come first."

In response to a question from Cha Kyugeun, a lawmaker from the Rebuilding Korea Party, about support for victims of rental deposit fraud, Park said, "Rental deposit fraud infringes on the basic right to housing, and given that the majority of victims (76%) are young people starting out in society, I agree with the need for active fiscal support." He added, "Although the supplementary budget proposal is still pending the passage of the 'Special Act on Rental Deposit Fraud,' considering the importance of supporting victims, active consideration is necessary."

Hong Geun Park, nominee for Minister of Planning and Budget, is presiding over the 'Policy Meeting on Livelihood Stability' held at the Korea Deposit Insurance Corporation in Jung-gu, Seoul on March 17, 2026. Photo by Planning and Budget Office

"Active Review of Support for Victims of Rental Deposit Fraud"

Earlier, on March 17, while presiding over the 'Policy Meeting on Livelihood Stabilization' at the Korea Deposit Insurance Corporation in Jung-gu, Seoul, Park remarked, "The life satisfaction of our people remains lower than the OECD average, and with rapid changes in the economic and social environment such as the AI transformation, demographic cliffs, and the disappearance of local communities, public anxiety may be on the rise." He emphasized, "At times like these, it is important for the government to monitor the lives of the people in the right places and to redesign the economic and social structure on a large scale."

Park also stated, "I see the realization of a warm, prosperous community for all as my calling," and "Through fiscal policy, I will pursue policies that promote a virtuous cycle of growth and distribution and create ladders of opportunity, serving as a foundation for the growth of all citizens." He also said he would closely review initiatives that support youth, small business owners, people with disabilities, and other groups in need of social attention.

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