First Vice Minister and Minister of Economy and Finance Choi Sang-mok dodged a question on whether he supports Prime Minister Han Duck-soo's candidacy, saying 'no comment' during a press conference with accompanying reporters at the International Monetary Fund (IMF) headquarters in Washington, D.C., on the 25th.
However, when asked if he thinks the political change of reverting to the role of acting vice minister if Han runs would harm national credibility, Choi responded, 'I hope political uncertainty will decrease in terms of national credibility.' This statement is interpreted as a veiled expression of hoping that Han does not run.
When asked if he received any hints from Han about running in the June 3 presidential election, Choi replied, 'No.'
Regarding the possibility of increasing the supplementary budget submitted to the National Assembly, Choi stated, 'Recently, (the economic) indicators have not been very good' and emphasized, 'I think we need to respond flexibly.'
As the first-quarter Gross Domestic Product (GDP) growth rate showed a decline of -0.2%, indicating a clear economic downturn, this comment is interpreted as suggesting a positive consideration of increasing funding for projects aimed at boosting exports and domestic consumption.
Choi stated, '(Speed is important until the processing of the supplementary budget)' and noted, 'If the projects align with the principles we outlined, we must respond flexibly.'
When asked if this means that projects aimed at boosting domestic consumption can be added, Choi stated, 'Whether it be for domestic consumption or exports, we need to discover more projects that will effectively support those in need in the short term and include them in the supplementary budget,' adding, 'But I'm not sure if it can be done quickly.'
In response to the question of whether there is an upper limit on the increase in the supplementary budget proposed by the government, Choi noted, 'What matters is the importance of the project, not setting a scale,' emphasizing, 'The effectiveness of the project is more important.' He further added, 'The direct effect of the project and support for vulnerable areas are significant.'
To the question, 'You said the scale is not important, but isn't there a limit for increasing the supplementary budget? Is it possible to increase by more than double?' Choi replied, 'It is necessary to consider the impact on the government bond market and the sustainability of finances.' This statement is interpreted as suggesting that excessive increases would not be possible.
When asked about the possibility of downward adjustment of this year's growth rate forecast due to the decline in first-quarter GDP, Choi said, 'It is very difficult to predict the growth rate this year,' explaining, 'Our country is experiencing a structural trend of falling growth potential, combined with uncertainties in the political situation, temporary factors such as disasters, and external uncertainties.'
He continued, 'There is clearly uncertainty and downside risks to the extent that it is difficult to make accurate forecasts,' adding, 'We need to differentiate our response to help vulnerable groups endure during this process, addressing temporary factors, psychological factors, and structural factors.'
When asked if there are any plans to increase tax revenue for fiscal sustainability, Choi stated, 'In terms of the tax burden rate, I don't think we have the ability to raise the tax rate,' adding, 'Additionally, if we are to do that (increase taxes), there needs to be public consensus.'
In response to a question about whether a specific schedule has been set for discussions on 'exchange rates' between the U.S. and South Korea following the 'U.S.-Korea 2+2 trade talks' held the previous day, Choi replied, 'I understand that the U.S. Treasury is reviewing what to discuss internally.'
Regarding the background of the exchange rate issue being addressed in this meeting, he said, 'The exchange rate has been a channel of communication between the South Korean and U.S. financial authorities for a long time, and that is a precedent.' When asked whether 'South Korea's political uncertainty would be detrimental to negotiations with the U.S.,' he noted, 'I cannot know the U.S. perspective accurately, but there is a shared understanding of the need for explanation of our political situation and the National Assembly.'
When asked whether the U.S. has formally made additional demands to our side, he flatly responded, 'No.'
When asked about his thoughts on his time in office as Vice Minister, Choi said, 'I had the honor of being appointed as the head of the organization where I started,' adding, 'I wanted to change some of the irrationalities in the Ministry of Economy and Finance, but it seems I have left it halfway. Although it may seem insufficient, 66 people were promoted from Deputy Director to Senior Secretary during my one year and six months in office. Sixty-six is not a small number, but I feel we need to do more.' He continued, 'I have been aware of the diminishing expertise in the Ministry of Economy and Finance and have tried to implement educational and working systems that allow staff to develop their expertise and abilities.' He mentioned his efforts for work-life balance, saying, 'If I had done a bit more, it might have had a more noticeable effect, but it feels somewhat incomplete, and I have regret.'
Additionally, he noted, 'I talked about a 'dynamic economy' when I took office to address the issues of revenue expansion centered on the market and structural problems in our economy.' He expressed a desire for more efforts to identify projects that enhance corporate growth ladders and expand the economically active population, stating, 'Unfortunately, this part is not unfinished, but it's regrettable to have just started and stopped.'