President Moon Jae-in has called on the government to direct all of its fiscal capacity to overcoming what he called South Korea's wartime economic situation.
Chairing a high-level meeting Monday between the presidential office, the government and ruling party to discuss the country's fiscal strategy, Moon said that the role of finance has become even more crucial because there's no sign of a bottom for the global economy, and South Korea is no exception.
The government needs to mobilize its full fiscal capacity on par with wartime. Finance is a direct tool used to carry out national policies. It must be used to address the people's burdens in light of the economic crisis.
Moon also called for the swift drawing up of a third extra budget with the aim of having it passed by June, emphasizing the importance of timely fiscal measures.
As for concerns over the country's fiscal soundness, Moon said there needs to be enough fiscal spending to overcome the crisis and strengthen the country's economic fundamentals.
With two supplementary budgets passed already, the country's debt-to-GDP ratio stands at 41 percent lower than the OECD average of 110 percent.
Through sufficient fiscal injection, we must overcome this serious crisis swiftly and boost the country's economic growth rate to secure its fiscal health, from a long-term perspective. This is the way to prevent the worsening of the debt-to-GDP ratio.
The president added that the government will also be tightening its belt and restructuring its budget to cut unnecessary spending.
Kim Min-ji, Arirang News.