President Lee Jae-myung on the 11th asked Deputy Prime Minister and Minister of the Ministry of Economy and Finance Koo Yun-cheol during a ministry briefing, "Is it a situation where we need to pursue an expansionary fiscal policy even the year after next?" Koo replied, "It is necessary if we want to lift the potential growth rate."

President Lee Jae-myung speaks during a joint briefing by the Ministry of Economy and Finance (National Tax Service, Korea Customs Service, Public Procurement Service) and the National Data Office at the Government Sejong Convention Center in Sejong on the 11th, titled 2026 Leapforwarding Economy, Trusted Data. /Courtesy of Yonhap News

After receiving the Ministry of Economy and Finance (MOEF) briefing that day, President Lee asked Koo, "If next year's growth rate is to exceed the potential growth rate, do we need to pursue an expansionary fiscal policy, or would a looser fiscal policy be acceptable next year?"

Koo then answered to the effect that an expansionary fiscal policy would be needed even the year after next. Koo said, "If the growth rate improves and revenue conditions get better, even with an expansionary fiscal policy, Government Bonds issuance can be reduced and the (fiscal) deficit can also be cut."

President Lee again asked, "Is it indeed a situation where we need to pursue an expansionary fiscal policy even the year after next?" Koo answered, "Yes." He added, "Fundamentally, to lift the potential growth rate, we need to increase investment to develop technology or raise labor productivity."

In response, President Lee said, "In the current state, because the (growth rate) is scraping the bottom and drawing a downward curve, the nation needs to make an effort if we want to draw an upward curve," adding, "In the end, we have no choice but to pursue an expansionary fiscal policy for the time being."

※ This article has been translated by AI. Share your feedback here.