Park Hong-geun Emphasizes Need for Flexibility in Introducing Fiscal Standards..."Not a Money Pot"

Candidate Park Hong-geun for the Budget Planning Director position stated at a hearing of the National Assembly’s Finance and Economy Committee on the 23rd that while he generally agrees on the necessity of introducing fiscal rules, he also cited European cases indicating that rigid fiscal operations could cause problems.

In response to questions from People Power Party lawmaker Yoon Young-suk about the high national debt ratio and the need for fiscal rules, Candidate Park acknowledged the importance of fiscal rules as a means to achieve sustainable fiscal management. However, he emphasized that, rather than simply debating whether to implement fiscal rules, establishing medium-term fiscal outlooks and managing goals flexibly are more critical.

Candidate Park further stated that globally, managing medium-term fiscal targets is seen as a trend, and that exploring national debt management strategies through this approach is important. He added that fiscal operations should be guided by long-term fiscal outlooks and medium-term fiscal plans. Candidate Park also mentioned that international organizations like the International Monetary Fund (IMF) have given Korea a stable assessment of its fiscal situation, showing pride in the current fiscal condition.

Finally, Candidate Park emphasized that “fiscal policy is not a treasure chest,” and that budgets must be used efficiently and resources allocated reasonably. This reflects the essential view that ensuring the sustainability of national finances is indispensable.

This development suggests that if Candidate Park Hong-geun is appointed as the head in the future, his policies may focus on introducing fiscal rules and enhancing flexibility and efficiency in fiscal operations. Such measures are expected to make Korea’s fiscal management more stable and sustainable.