What did Prime Minister Han Seong-sook say about fiscal policy and growth?

Han said the government should focus on growth in fiscal policy and that investing in growth-related areas is the most fundamental way to maintain overall fiscal health. She also linked stronger tax revenues to improved corporate earnings.

Why did Han Seong-sook argue that expansionary fiscal policy matters now?

She said the current government is using expansionary fiscal policy to support economic growth after inheriting a situation in which growth was close to zero percent. Han added that nearly all institutions are now revising up growth forecasts.

What did Han Seong-sook say about the previous government's fiscal approach?

Han said the preceding government ran fiscal policy in a highly contractionary way, while the current administration is taking an expansionary approach. She called this a very important turning point for stimulating growth.

PM calls for prioritizing growth in fiscal policy

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Summary

Prime Minister Han Seong-sook said Monday that fiscal policy should prioritize growth, telling a parliamentary budget and accounts committee meeting that investment in growth-oriented areas is key to maintaining fiscal health. She said improved corporate earnings helped tax revenues and argued that expansionary fiscal policy is needed for economic growth. Han also contrasted the current approach with the previous government’s highly contractionary stance and said growth forecasts are being revised up.

Key Facts

Han made the remarks during a parliamentary budget and accounts committee meeting after Rep. Ahn Do-geol of the ruling Democratic Party of Korea asked how to maintain fiscal health.
She said the country’s growth was close to zero percent when the current administration took over.
Han said almost all institutions are revising up growth forecasts.
She described the previous administration’s fiscal policy as highly contractionary and said the current government is implementing an expansionary fiscal policy for economic growth.

By Yonhap

Published Aug 24, 2026 1:31 pm KST

Prime Minister Han Seong-sook, right, speaks during a consultative meeting of senior party and government officials at the prime minister's residence in Seoul, Sunday. Yonhap

Prime Minister Han Seong-sook said Monday the government should focus on growth when it comes to fiscal policy, stressing that investment in growth-oriented areas is a key way to maintain fiscal health.

Han made the remark during a parliamentary budget and accounts committee meeting after Rep. Ahn Do-geol of the ruling Democratic Party of Korea asked about the best policy to maintain fiscal health.

"The reason we reaped a good harvest of tax revenues is due in part to the improved earnings of companies," Han said. "I believe that investing in growth-related parts for the future is the most fundamental way to maintain overall fiscal health."

Han also highlighted the difference from the preceding government's focus on fiscal austerity.

"While the previous administration operated the fiscal policy in a highly contractionary way, our government is implementing an expansionary fiscal policy for economic growth," she said. "This has become a very important turning point in how we would stimulate growth."

Han said the country's growth was close to zero percent when the current administration took over.

"Now, the situation has turned around, with almost all institutions revising up our growth forecasts," she said.

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