Minister Park Honggeun Vows to Achieve 10% Cut in Mandatory Spending: "Ready to Play the Villain if Needed"

"As the one who proposed the creation of the Ministry of Strategy and Finance by reorganizing the Government Organization Act, it is now my responsibility to resolve what I started."

Park Honggeun, Minister of Strategy and Finance, holding a briefing session with the press corps. Ministry of Strategy and Finance.

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On April 21, Park Honggeun, Minister of Strategy and Finance, held his first press briefing since taking office, expressing his bold ambitions. Park, a four-term National Assembly member and former member of the National Policy Planning Committee under the Lee Jaemyung administration, emphasized his determination to fulfill the "Future Vision for Korea" he has nurtured during his term. In particular, he reaffirmed his commitment to fiscal reform by pledging the swift execution of an extra budget to address the Middle East war crisis and announcing an unprecedented plan to cut mandatory spending by 10% in next year's budget.

At the briefing, Minister Park identified the establishment of a "mid- to long-term national development strategy" as his top priority. Reflecting on the disappointment that the "Vision 2030" under the Roh Moo-hyun administration lost momentum due to being formulated at the end of the term, he revealed his plan to complete the "Vision 2045" at the beginning of the Lee Jaemyung administration, aiming for the 100th anniversary of Korea's liberation.

Minister Park stated, "Five major structural crises-including the great transformation brought by artificial intelligence (AI), demographic changes, and polarization-require a consistent strategy that remains stable regardless of changes in government." He added, "Within this year, we will present a roadmap depicting the future of Korea in 2045 to the public." To this end, seven subcommittees, primarily composed of young scholars in their 30s and 40s, are already operating, and he pledged to extensively reflect the voices of the public and youth in the process.

Regarding fiscal management, he reaffirmed his commitment to rigorous "spending efficiency." Referring to the guidelines for next year's budget proposal-which call for a 15% cut in discretionary spending and a 10% reduction in mandatory spending-Minister Park said, "It is an extremely difficult task, as it means taking away from what someone is already using, but it is a role that we have no choice but to undertake."

He emphasized, "Even if it means playing the villain, I will calmly accept this responsibility, earn the trust of the public, and persuade ministries to follow suit." He also pledged to enhance the effectiveness of fiscal project performance evaluations to avoid outcomes that start strong but fizzle out. Regarding the controversial local education grant, he hinted at possible reforms, stating, "The situation is different now from over a decade ago, when as a first-term lawmaker, I advocated for raising the share of domestic taxes. Given the sharp decline in the school-age population, we will seek alternatives through public discussion."

Minister Park also responded candidly to current issues. Regarding suggestions for a second extra budget, he remarked, "This is not the time to ask when the next meal will be served when the table has just been set and no one has started eating," stressing the importance of swiftly executing the already allocated extra budget. However, he maintained a principled stance, noting that it is impossible to predict the course of the situation in the Middle East.

On the issue of national government compensation for local governments' losses from free subway rides-a long-standing demand from municipalities-he expressed his personal belief that a "package deal" is necessary. This would involve discussing central government support along with raising the age standard for seniors, local governments' own efforts, and consumer burden (fare) adjustments.

Reflecting on his first month in office, Minister Park concluded, "I want to transform the Ministry of Strategy and Finance from a 'muscle organization' that simply wields power into one that empowers the nation and its people. Please watch the ministry's progress with both cool reason and warm hearts."

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