Lee Chang-yong, governor of the Bank of Korea, reiterated that it is desirable to have a supplementary budget of 15 trillion to 20 trillion won.
Governor Lee responded as such to a related inquiry from Democratic Party of Korea lawmaker Yoon Ho-jung during a full meeting of the Planning and Finance Committee held at the National Assembly on the 18th.
Previously, he suggested that a supplementary budget of 15 trillion to 20 trillion won is necessary at a press briefing held right after the Monetary Policy Committee meeting on the 16th of last month. He reaffirmed the same position, even though the opposition mentioned a ‘super supplementary budget’ of 35 trillion won at this time. Governor Lee added, "This supplementary budget alone cannot solve the problems of self-employed individuals," noting, "It is considering long-term fiscal soundness and other aspects."
In response to a question from Democratic Party of Korea lawmaker Kim Young-jin regarding whether South Korea's GDP growth rate forecast for this year would be revised down to the level of 1.6% to 1.7%, Governor Lee said, "We are reviewing it again." This indicates that adjustments to the economic outlook will be announced at the Monetary Policy Committee meeting on the 25th.
Previously, the Bank of Korea presented a growth rate forecast of 1.9% for this year in its economic outlook in November of last year. However, after unforeseen issues such as the emergency martial law in December and January arose, the Bank noted right after the Monetary Policy Committee meeting last month that "the growth rate forecast will be revised down to about 1.6% to 1.7%."
Governor Lee stated, "This is due to a combination of factors, not only the impacts of the emergency martial law but also economic policies and interest rate policies of the United States, including the Federal Reserve," adding, "I will explain in more detail when we announce the new forecast on the 25th."
During the committee meeting that day, there were also comments from People Power Party lawmaker Park Dae-chul regarding Governor Lee's remarks supporting the appointment of the Constitutional Court judge by Acting President and Minister of Strategy and Finance Choi Sang-mok, stating that it was "inappropriate" from the perspective of political neutrality. In response, Governor Lee argued, "There were concerns about impeachment in international society and among credit rating agencies," adding, "I believed that someone needed to address our country's economic management, so I took the risk to speak out."