[2026 National Assembly Audit] Shin Hyunsong: "Budget to Add 0.5 Percentage Points to Growth... Inflation Up 0.06 Points"

National Assembly Finance and Economy Planning Committee's Audit of the Bank of Korea

Bank of Korea Governor Shin Hyunsong said on October 12, "We estimate that the government budget proposal will have an additional growth effect of 0.5 percentage points on domestic GDP."

Speaking that afternoon at a National Assembly audit of the Bank of Korea by the National Assembly's Finance and Economy Planning Committee, Governor Shin added, "The additional increase in the inflation rate resulting from this is estimated at 0.06 percentage points."

Governor Shin further explained, "There is room for further assessment as to whether this will add to upward inflationary pressure," adding, "An increase of around 0.06 percentage points can be considered not particularly large."

When People Power Party lawmaker Lee Jongwook said there were concerns that "monetary and fiscal policies are working at cross purposes," Governor Shin replied, "We are using models to assess whether they are actually working at cross purposes."

In response to Lee's question, "Will the government's expansionary fiscal policy put pressure on prices or the money supply?" Governor Shin said, "It will inevitably place some pressure," but added, "If the potential growth rate rises over the medium to long term, the policies may not be working at cross purposes."

Yonhap News

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