Budget minister nominee emphasizes fiscal policy amid rising oil prices
Budget Minister nominee Park Hong-keun speaks during a policy meeting held at Korea Deposit Insurance Corporation in Seoul, Tuesday. Courtesy of Ministry of Planning and Budget
Budget Minister nominee Park Hong-keun on Tuesday called for an active role of fiscal policy in responding to external shocks, citing heightened uncertainty stemming from Middle East tensions that have kept oil prices elevated.
"Rising oil prices could push socially and economically vulnerable groups into crisis," Park said in opening remarks at a policy meeting. "Fiscal policy must play an active role in responding to external shocks."
The remarks come as the government and the ruling Democratic Party of Korea (DPK) have agreed to draw up and submit this year's first supplementary budget bill to cope with fallout from the ongoing conflict.
Korea, which depends heavily on energy imports, is particularly vulnerable to external price shocks, which often drive inflation.
Park also cited Korea's relatively low life satisfaction compared with other member countries of the Organization for Economic Cooperation and Development, emphasizing the need to redesign the country's economic and social structures in a broader framework.
"I see it as my mission to build a warm community where everyone can prosper together," Park said, adding that fiscal policy should help create a virtuous cycle between growth and distribution.
Park, a four-term lawmaker of the ruling DPK, was tapped earlier this month by President Lee Jae Myung as the inaugural minister of the Ministry of Planning and Budget.
His nomination came more than a month after Lee withdrew his earlier pick, opposition politician Lee Hye-hoon, following a series of controversies over alleged misconduct, including suspicious real estate dealings involving her family.