Park Honggeun: "Last Year's Consumption Coupon Was Effective... Supplementary Budget Is Not an 'Election-Driven Cash Handout'"

March 23 National Assembly Hearing for Minister of Planning and Budget Nominee

“Low Likelihood That Extra Budget Will Cause Inflation”

Park Honggeun, nominee for Minister of Planning and Budget, stated regarding the Lee Jaemyung administration’s 13 trillion won “Livelihood Recovery Consumption Coupon” program last year, “I believe the supplementary budget (extra budget) was what managed to help the growth rate rebound, even after four consecutive quarters of growth below 1%.”

Yonhap News Agency

On March 23, at the personnel hearing before the National Assembly’s Fiscal and Economic Planning Committee, Park made this remark in response to a question from Assemblyman Park Sungjun of the People Power Party about the effect of the consumption coupon program.

Assemblyman Park pointed out earlier, “There is analysis that shows the consumption coupon payments only produced a temporary effect, failed to fundamentally change the economic system, and had no impact on employment, productivity, or wages.”

When Assemblywoman Lim Ija of the People Power Party criticized, “(This year as well) we should not be distributing cash to the entire population as if scattering money,” nominee Park responded, “Last year, the amounts varied by region and time, such as 150,000 won or 500,000 won, and both the Bank of Korea and KDI evaluated it positively. I have not yet received the detailed plans about whether all or only some people will receive the payments, but I will organize the supplementary budget in a way that best fits the purpose of the extra budget and helps economic reform, while minimizing the impact on inflation.”

Assemblyman Park and Assemblywoman Lim characterized the anticipated 25 trillion won supplementary budget as an “election-driven cash handout” and raised concerns about potential negative effects such as driving up prices.

In response, nominee Park stated, “This supplementary budget is a preemptive measure to counter economic downside risks,” and added, “Since it will be implemented without the additional issuance of government bonds, like the Bank of Korea and other analyses have shown, the likelihood of stimulating inflation is low.”

He went on to say about his role as the “keeper of the treasury” as Minister of Planning and Budget, “I believe the head of the fiscal authorities should ensure fiscal resources provide a pump-priming effect in the right places, while also maintaining a balance to achieve maximum efficiency.”

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