Park Hong-geun, Minister of the Ministry of Economy and Finance, stated on October 8 that he will examine necessary reforms in labor, education, and pensions to improve South Korea's structural issues and will prepare specific implementation plans in collaboration with relevant departments.
During the National Assembly's Finance and Economy Committee's first national audit of the Ministry since its establishment, Park outlined the future direction of fiscal management, including the establishment of a mid- to long-term national development strategy, structural reforms, and investments in future growth drivers.
He emphasized the need to concentrate resources where they are most needed, aiming for bold investments to enhance economic growth potential and expand future growth drivers.
The focus of fiscal policy will be on future growth drivers. Park pledged to strengthen the foundation for growth and protect livelihoods through proactive and efficient fiscal management.
Specifically, he plans to fully support three mega projects and artificial intelligence while concentrating on the development of seven key national strategic technologies, including nuclear fusion, small modular reactors (SMR), quantum technology, and aerospace. He also aims to enhance support across all aspects of life for youth, including education, employment, housing, marriage, childbirth, and childcare.
Park revealed plans to develop a national development strategy to address the structural crises facing the economy and society in the medium to long term. The Ministry aims to envision South Korea's future by 2045 and identify national-level structural reform tasks across all sectors of the economy and society.
To enhance fiscal sustainability, a 'Future Response Fund' has been proposed. Park stated that proactive fiscal measures will drive growth, creating a virtuous cycle where growth leads to increased tax revenue. The Future Response Fund is envisioned as a strategic investment platform to enhance potential growth rates and stabilize finances.
He noted that the additional fiscal capacity from the semiconductor boom will not be exhausted on one-time expenditures but will instead be invested in youth, growth drivers, local development, and education and talent. At the same time, he plans to fundamentally change the existing expenditure structure. During the budget preparation process for the next year, all fiscal projects will be reviewed from a zero-based perspective, and low-performing and inefficient projects will be restructured, with a commitment to reduce unnecessary spending without exception.
Park also emphasized the importance of expanding public participation and communication with the National Assembly in fiscal management. He aims to reflect the voices of the public in budget preparation, execution, and evaluation, and to establish a 'Public Finance' system that integrates information on central, local, and educational finances to enhance transparency and trust in fiscal management.
The Ministry plans to support both growth and livelihoods through this fiscal management approach. Park concluded, "In the next one to two years, what we prepare and how we execute it will determine the future of South Korea."
* This article has been translated by AI.
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