Speaking April 21 at the Government Complex Sejong in his first briefing with reporters since taking office, Park said he would prepare “a roadmap on a timeline” that would allow the government to present the 2045 plan within the year. “It is important to set a national vision early in an administration and, based on that vision, establish a medium-term fiscal strategy as well,” he said.
Park was appointed March 25. It was his first official meeting with the press corps. The ministry passed its 100th day since its April 11 launch, but faced a leadership vacuum after its first minister-designate, Lee Hye-hoon, withdrew amid controversies.
Park outlined three core agendas for the ministry: establishing a mid- to long-term national development strategy; strategic budgeting and allocation of financial resources; and fiscal management aimed at delivering tangible improvements in people’s lives. “We will set bold visions and goals, but push strategy based on concrete plans and the ability to execute,” he said.
On Vision 2045, being prepared through a mid- to long-term strategy committee, Park said it differs from the 2006 “Vision 2030,” which he said was created near the end of the Roh Moo-hyun administration. This time, he said, work began early in the new government. He also said the effort is meaningful because it involves not only the government but also ministries, the National Assembly, private research institutions and the public.
Park drew a line on the likelihood of a second supplementary budget for now. “This is the time to focus on swiftly executing the supplementary budget that was put together with difficulty, to maximize results and efficiency,” he said. Using a metaphor, he added, “The meal has been cooked and set on the table, but we haven’t even picked up the spoon yet. It’s not time to talk about the next meal.” Still, he did not rule it out entirely, saying that if an unexpected prolonged situation or worsening conditions occur, “it would be difficult for anyone to judge.”
For next year’s budget, Park signaled aggressive spending cuts and restructuring. “We will boldly restructure unnecessary and non-urgent spending, and put the secured resources where they are needed for key state tasks and priority policies,” he said. He pledged to ensure that targets in the budget guidelines — a 15% cut in discretionary spending and a 10% cut in mandatory spending — do not end as “a flash in the pan.” He said he would consult with other ministries and pursue public discussion to carry out what he called an unprecedented restructuring.
Park cautioned against excessive concern over the International Monetary Fund’s warning that South Korea’s national debt-to-GDP ratio could exceed 60% by 2030. “It’s not just whether the debt ratio is high or low; we also need to look at whether we have the capacity to bear it,” he said. He added that the IMF projection is only a forecast and has often overestimated outcomes, arguing that economic conditions, fiscal circumstances, policy responses and timing should be considered together.
At the same time, Park acknowledged the need to manage the pace of debt growth. He said this year’s spending restructuring was the largest on record, and that the plan to cut mandatory spending by 10% next year reflects an intent to manage public finances strictly. He said it is important to create a virtuous cycle — as in Sweden or the Netherlands — by raising growth to expand GDP and, as a result, lower the debt ratio.
* This article has been translated by AI.
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