President supports quantitative easing
By Kang Seung-woo
President Park Geun-hye said the country needs further monetary easing to boost the economy, fueling the controversy over the Korean version of quantitative easing.
Asked about her position on former finance minister Kang Bong-kyun’s recent call for the Bank of Korea to introduce quantitative easing to boost the sluggish economy, she said she agrees with the need for further monetary easing.
Kang, who co-headed the ruling Saenuri Party’s campaign for the April 13 general election, has said that the central bank must print more money in the form of buying bonds from the Korea Development Bank and other state-run banks as part of Korea’s attempt at quantitative easing.
“I’m in the position that we should positively consider introducing a quantitative easing,” Park said at a meeting with senior journalists. “I will make efforts to have (monetary policy) implemented in that direction.”
The Bank of Korea has been negative about the efficacy of further easing monetary policy to boost the economy.
On the matter of raising corporate taxes to generate funds to boost the economy, she expressed a negative view.
“A tax hike should be the last resort. We must take other measures first instead of raising taxes,” she said.
Asked about the rules designating a company as an entity subject to antitrust and competition regulations, Park said this was problematic.
Her remarks refer to the recent designation of mobile messenger operator Kakao as a company big enough to be put on the antitrust watch list.
“This is an outdated rule that exists only in our country. If Kakao and other companies were designated as a big company subject to the rule, who would want to grow? We should change this system,” Park said.