Outgoing Hong Nam-gi: "The biggest regret was definitely real estate... Proud of 'Overcoming COVID-19'"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is briefing on the 2022 supplementary budget proposal at the Government Seoul Office in Jongno-gu, Seoul, on January 21. / Photo by Moon Ho-nam munonam@

원본보기 아이콘

[Asia Economy Intern Reporter Kim Se-eun] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, who is about to retire, cited the "real estate issue" as the most regrettable aspect during his term.

According to the Ministry of Economy and Finance, on the 24th, Deputy Prime Minister Hong told the accompanying press corps during the G20 Finance Ministers meeting, "The most regrettable thing during my term was definitely the real estate market measures."

He continued, "If there had been a bit more time to address the rising real estate prices, it would have been better to stabilize them significantly downward before my term ended, but this issue has been passed on to the next administration."

He mentioned, "The media's reports of instability and expectations of further price increases have heightened anxiety," adding, "In our country, more people aim for speculative windfall income rather than accumulating wealth through earned income, so stabilizing real estate prices is not easy," highlighting the limitations.

He also emphasized that the supply of real estate was by no means insufficient.

Deputy Prime Minister Hong explained, "Looking at it in five-year increments, the supply of housing is by no means small," and added, "It might sound like self-praise, but I thought I should say that as I step down."

Furthermore, Hong publicly opposed the Democratic Party's policy of providing "universal disaster relief payments" citing fiscal soundness.

In this process, repeatedly yielding to political demands, he earned nicknames such as "Hongdu Sami" and "Hong Baek-gi."

Hong reflected, "I was deeply hurt by the controversy over universal relief payments and the nickname Hongdu Sami at the time." Nevertheless, the Ministry of Economy and Finance insisted on maintaining fiscal soundness.

Other regrets included the failure to legislate the "Framework Act on Service Industry Development (Seobalbeop)" and "Fiscal Rules."

He was responsible for the legislative work on the Seobalbeop while serving as Director General of Policy Coordination at the Ministry of Economy and Finance, but the bill, submitted to the National Assembly in December 2011, remains pending.

Similarly, Hong expressed disappointment that the legislation of fiscal rules, which he emphasized as essential for fiscal consolidation, was not realized.

On the other hand, he cited "overcoming the COVID-19 crisis" as a rewarding achievement.

Hong said, "Two and a half years out of my three and a half years in office were during COVID-19," and added, "We responded to COVID-19 from A to Z. Overcoming the COVID-19 crisis and recovering the economy is what I remember most."

He also mentioned the response to Japan's export restrictions in 2019 with the "SoBuJang (Materials, Parts, and Equipment) measures."

He expressed pride, saying, "Especially, the special SoBuJang account was strongly opposed by the Budget Office, but I insisted on creating it."

Regarding the "Korean New Deal," which is considered a target for budget restructuring by the next Yoon Suk-yeol administration, he evaluated, "It is one of the memorable things," and said, "The name can be changed or fine-tuned, but I believe restructuring cannot be done."

Deputy Prime Minister Hong, who will step down as the economic chief when the new government takes office in May, will hold the record as the longest-serving minister since the establishment of the Ministry of Economy and Finance (3 years and 6 months).

He will also leave a record of having prepared a total of 11 budgets during his term, including four supplementary budgets in one year for the first time in 59 years during the COVID-19 crisis response.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.