Park Hongkeun: "Supplementary Budget Must Include Oil Stockpiling and Supply Chain Measures... Youth Employment Also to Be Reflected"

National Assembly Finance and Economy Planning Committee Confirmation Hearing

Hongkeun Park, Ministerial Nominee for the Ministry of Planning and Budget, is attending the confirmation hearing held on March 23, 2026, at the National Assembly's Financial and Economic Planning Committee. Photo by Hyunmin Kim

Hongkeun Park, Ministerial Nominee for the Ministry of Planning and Budget, stated regarding the 25 trillion won supplementary budget proposal that “the budget must include efforts to secure critical items for future supply chain stability, diversify supply chain routes such as oil stockpiling, and more.”

On March 23, during the confirmation hearing at the National Assembly's Financial and Economic Planning Committee, Park shared this perspective on the direction of the supplementary budget to respond to the Middle East crisis.

He said, “Although a petroleum price cap is currently in effect, it is impossible to predict how long the situation in the Middle East will last, so it is inevitable to prepare a supplementary budget that comprehensively takes these factors into account.” He added that, since naphtha was recently designated as a key economic security item, the supplementary budget must also include measures to stabilize supply chains.

In response to concerns about whether the 25 trillion won supplementary budget is sufficient to offset the economic downturn, Park emphasized, “We must not miss the golden time for a supplementary budget.” He noted, “The size of the supplementary budget must be determined by comprehensively considering the fiscal situation. Since fiscal expenditure alone cannot fully revive the economy, stimulating private consumption and encouraging corporate investment will be essential.”

Regarding the source of funding for the supplementary budget, Park explained, “We will utilize excess tax revenue,” and “I understand that these funds will be used without issuing additional government bonds.” Addressing concerns about potential inflationary effects, he referenced the Bank of Korea’s view, stating, “Since our economic growth is below the potential growth rate and there is a widening gap between the IT and non-IT sectors, a supplementary budget of this scale is not expected to have a significant impact on prices.”

He further stressed, “Strategically allocating limited resources is the responsibility of the fiscal chief,” and pointed out, “Former Deputy Prime Minister for Economic Affairs Hong Namki faced criticism for not utilizing substantial excess tax revenue during difficult times.”

Regarding support measures for affected small and medium-sized enterprises, Park said, “The Ministry of Planning and Budget is identifying and preparing for the needs of the supplementary budget, and of course, support for affected industries is included.” He explained, “For example, the budget will likely include provisions to address the burden of logistics and transportation.”

When asked about including measures to address youth unemployment in the supplementary budget, Park said, “The purpose of the supplementary budget is not only to address the economic slowdown but also to respond to mass unemployment, so employment and job creation projects for young people should be reflected in the supplementary budget.” He added, “Although this year’s budget included an additional 400 billion won for youth employment compared to last year, it is still insufficient.”

He noted, “While employment indicators are generally improving, those for young people remain very poor,” and added, “In particular, the number of young people classified as ‘taking a break’ has exceeded 400,000.”

Meanwhile, Park acknowledged the issue of having described his past record related to the democratization movement as “pardoned” in campaign materials, saying, “If I did not use the legal terminology accurately, that was my oversight.” He explained, “I meant that I had served my sentence, regained eligibility to run for office, and that everything had been resolved.”

This content was produced with the assistance of AI translation services.