Minister nominee Park Hong-geun of the Ministry of Planning and Budget said, "A swift and preemptive supplementary budget is needed to keep the recovery momentum of our economy."
On the 23rd, at the National Assembly's Strategy and Finance Planning Committee confirmation hearing, Park responded to People Power Party lawmaker Lee In-seon's remark—"With the annual fiscal deficit exceeding 100 trillion won, it is common sense to use excess tax revenue to pay down debt. Isn't the push for a supplementary budget too hasty?"—by saying, "Before the Middle East situation, Korea's economy was on a recovery path, but external uncertainty has grown significantly."
Park said, "The role of the fiscal chief is to determine how strategically to allocate limited resources," adding, "It is also necessary to achieve maximum efficiency with the same investment. In the past, Deputy Prime Minister for Economic Affairs Hong Nam-ki faced criticism for not using large excess tax revenues appropriately during difficult times."
Park said the supplementary budget bill should include measures to stabilize the energy supply chain and programs for youth jobs. In response to a question from Democratic Party of Korea lawmaker Oh Ki-hyeong—"What programs are you considering in connection with the Middle East situation?"—Park said, "A (petroleum) price ceiling is currently in place, but we cannot predict how long the Middle East situation will last," adding, "Naphtha was designated as an (economic security) item a few days ago, and the supplementary budget should also include efforts to diversify (supply chain) routes, such as securing items for future supply chain stability and building up oil reserves."
Regarding support for corporations that suffered losses in the transaction process with the Middle East, Park said, "The budget office is identifying and preparing the demand for a supplementary budget, and of course support for affected industries is included," adding, "For example, it is expected to include funding that takes into account logistics and transportation burdens."
Park also said, "As one of the purposes of the supplementary budget is to respond to mass unemployment, employment and job programs related to youth must be reflected in the supplementary budget," adding, "Including 'resting' youth, effective reinforcement measures should be presented."
In response to Democratic Party lawmaker Ahn Do-geol's comment—"Isn't the revealed 25 trillion won size of the supplementary budget insufficient to offset the economic decline?"—Park said, "We have no choice but to respond by comprehensively considering the fiscal situation," adding, "Fiscal expenditure alone cannot fully restore the economy, so stimulating private consumption and investment by corporations will be important."