[2026 Parliamentary Audit] Shin Hyunsong: "Fiscal Policy Sustainability Is Important... Will Continue to Share Views"

Bank of Korea Governor Shin Hyunsong said on the 12th, responding to criticism that monetary and fiscal policies were out of sync, “I will continue to express my views to ensure they are operated in harmony.”

Bank of Korea Governor Shin Hyunsong presents a work report during a parliamentary audit at the Bank of Korea in Jung-gu, Seoul, on the 12th. Photo by Joint Press Corps/Yonhap News Agency.

At a parliamentary audit of the Bank of Korea that morning by the National Assembly’s Finance and Economy Planning Committee, Rep. Park Soo-young of the People Power Party voiced concern that the expansionary fiscal policy would widen the budget deficit. Shin replied, “The sustainability of fiscal policy is absolutely essential.”

Park criticized the government’s planned budget of 820.9 trillion won for next year and the negative spread on the Future Response Fund, saying, “With this kind of expansionary stance, the money supply (M2) is rising much faster than in the United States, yet the Bank of Korea is keeping quiet and letting it happen.” He continued, “Are we going to sharply increase spending now and then issue government bonds again to run the country if tax revenues fail to come in two to three years from now?” He added, “Tax revenue from semiconductors may decline, but once spending has been increased, it does not go back down,” and urged the governor to “take a more active role on this issue.”

In response, Shin said, “I will continue to speak up about sustainability.”

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