Park Hongkeun: "Supplementary Budget Is for Crisis Response... Will Include Oil Stockpiling and Youth Jobs" (Comprehensive)

March 23 Confirmation Hearing for Minister of Planning and Budget

"No Concern That Supplementary Budget Will Stimulate Inflation"

Park Hongkeun, nominee for Minister of Planning and Budget, stated on March 23 that the government’s plan for a supplementary budget worth 25 trillion won is a “response to the crisis caused by the Middle East situation,” refuting criticism that it is simply “pre-election cash handout.”

Yonhap News Agency

At the National Assembly confirmation hearing that day, Park drew a clear line when Assemblyman Park Sunghoon of the People Power Party questioned whether the supplementary budget was “for crisis response or for the election,” stating, “This supplementary budget is a proactive response to the economic downturn resulting from the Middle East situation.”

Regarding the criticism that the 13 trillion won worth of livelihood recovery consumption coupons issued by the Lee Jaemyung administration last year “only had a temporary effect and did not impact employment or wages,” Park countered, “I believe it was the effect of the supplementary budget that managed to rebound growth, which had stayed in the 0% range for four consecutive quarters.”

When Assemblywoman Lim Ija of the People Power Party pointed out, “(Even this year) you should not distribute cash to all citizens,” Park responded, “Last year, the payments were differentiated by region and timing, ranging from 150,000 won to 500,000 won, and both the Bank of Korea and KDI evaluated this positively.” He added, “Although I have not yet received detailed information on whether the payments will be made to all or to some, the supplementary budget will be designed to minimize the impact on inflation and to align with its intended purpose, supporting economic reform.”

On concerns that the supplementary budget could cause inflation, he replied, “Since additional government bonds will not be issued, as analyzed by the Bank of Korea and others, I believe the possibility of stimulating inflation is low.”

Park Hongkeun, a member of the Democratic Party of Korea who has been nominated as the candidate for Minister of Strategy and Finance, is arriving at the office prepared for the confirmation hearing at the Korea Deposit Insurance Corporation in Jung-gu, Seoul on March 3, 2026. Photo by Dongju Yoon

Park emphasized the importance of expeditiously preparing the supplementary budget. He stated, “Many people are unable to feel the benefits of recovery in the shadow of so-called ‘K-shaped growth’ (widening polarization),” and pledged, “I will swiftly prepare and submit the supplementary budget bill to the National Assembly in order to minimize its impact on livelihoods, the economy, and industry.”

Regarding specific items to be included in the supplementary budget, he said, “It should include measures for stabilizing supply chains, such as oil stockpiling.” He also explained that, to support industries affected by the Middle East crisis, measures are being prepared to address increased logistics costs. Furthermore, he noted, “One of the objectives of the supplementary budget is to address mass youth unemployment,” adding, “We need job enhancement measures for young people, including those classified as ‘taking a break.’” He reaffirmed that only excess tax revenue will be used as funding, and that no additional government bonds will be issued.

In response to a question about whether he would exclude Planning and Budget Office employees who own multiple homes from participating in the discussion, formulation, or decision-making of housing and real estate policies, in accordance with President Lee Jaemyung’s directive, Park replied, “This is a policy that applies equally to anyone who could influence such policy decisions,” expressing his intention to exclude them.

Regarding the structure in which cities like Seoul bear the losses from the free subway transportation system for the elderly, Park indicated the need for reform, saying, “Ultimately, the issues of raising the eligible age for free rides, central government support, self-help efforts by local governments, and consumer cost-sharing need to be resolved as a package.”

On having led the 2019 revision of the Passenger Transport Service Act, commonly referred to as the “Tada Ban Law” during his tenure as an assemblyman, he stated, “I have always called it the Mobility Innovation and Promotion Law,” and added, “It was unfortunate that Tada withdrew from the market, and it was also regrettable that an issue that should have been resolved through social dialogue was instead taken to court by the prosecution.”

He continued, “When new and old industries clash, it is the role of the National Assembly to mediate, and such matters must be resolved through social dialogue and compromise. Even if innovation arises outside the system, it cannot be exempt from regulation. Especially when it concerns public safety, it is only right to ensure fair competition within the system in any way possible.”

When opposition lawmakers pressed him on whether he could call North Korea the “main enemy,” he stressed, “From a military perspective, North Korea is the greatest threat. Please understand my remarks as they are.”

However, Park admitted fault for not accurately recording his criminal record related to the democratization movement in his election campaign materials, calling it an “oversight.”

As a first-term lawmaker, he had indicated in campaign materials that he had been “pardoned” for convictions related to violations such as Molotov cocktail use, but it was later found that his suspended sentence period had merely expired.

Park said, “I probably intended to convey that all legal issues had been cleared after the sentence expired,” acknowledging that it was indeed an error not to use the correct legal terminology. He added that he has not used the term “pardon” in campaign materials since his first term.

Regarding his previous use of the term “victim claimant” to refer to the late former Seoul Mayor Park Wonsoon’s sexual harassment victim, Park explained, “It was an inappropriate expression.”

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