Korea should manage expenditure on welfare programs at "appropriate" levels amid worries over increasing spending caused by lower birth rates and an aging population, the top economic policymaker said Wednesday.
More demand for welfare is causing serious debate among political circles over how to raise money to support senior citizens and underprivileged people at a time when the country's workforce is expected to shrink due to the chronically low birth rate and fast-aging population.
"We should manage our welfare-related expenditure at appropriate levels in line with our capacity, by reflecting the low birth rate and aging population," Finance Minister Bahk Jae-wan told a forum in central Seoul designed to discuss fiscal soundness.
"We need to keep strengthening welfare to stabilize and enhance the quality of the life for working-class people but should not compromise our principle to provide welfare intended to encourage working and tailored to people in need," he added.
Bahk emphasized the importance of increasing investment in education and research and development, which he believes will strengthen the country's future growth potential.
As for "potential" risk factors such as increasing debt in the public sector and regional governments, Bahk said he will keep those issues under control while at the same time preparing for other mid and long-term risks that could weigh on the country's finances. (Yonhap)