Go to contents

BOK Governor urges swift supplementary budget

Posted January. 17, 2025 07:47,   

Updated January. 17, 2025 07:47

한국어

Bank of Korea (BOK) Governor Lee Chang-yong has stressed the urgent need for a supplementary budget to bolster the economy, citing concerns that South Korea's fourth-quarter economic growth rate may fall below 0.2% due to the ongoing political turmoil surrounding martial law and impeachment proceedings. Lee emphasized that fiscal measures and monetary policy are crucial to reviving the sluggish economy.

Following a Monetary Policy Board meeting on Thursday, the BOK governor stated during a press conference, “From the Bank of Korea’s perspective, the supplementary budget needs to be implemented now.” He added, however, that targeted support for struggling small business owners would be more appropriate than blanket aid for all citizens, signaling opposition to the Democratic Party’s proposal to provide 250,000 won to every resident.

Lee further suggested a supplementary budget of 15 to 20 trillion won to address the economic slowdown caused by external factors. “The aim of the supplementary budget is not to artificially boost growth but to offset the contraction stemming from external shocks,” he said, emphasizing the importance of prompt action.

His call for fiscal intervention reflects growing concerns over the economy's vulnerability to political uncertainties. “Recent data up to early January shows sharper-than-expected declines in consumption, domestic demand, and the construction sector,” Lee noted. “While the fourth-quarter growth rate was 0.2%, it could drop further.”


강우석기자 wskang@donga.com