Park Hong-geun, nominee for Minister of Strategy and Finance, stated ahead of his National Assembly confirmation hearing that "a supplementary budget well-targeted at vulnerable sectors needs to be pursued."
In his written responses to questions submitted to the National Assembly's Strategy and Finance Committee on the 20th, Park emphasized that "major research institutions have also assessed that a supplementary budget for vulnerable sectors would actually contribute to macroeconomic, financial, and foreign exchange market stability."
Regarding specific supplementary budget projects, he added that the budget should reflect support for logistics and fuel cost relief in response to high oil prices, livelihood stabilization for struggling low-income households, small business owners, and farmers and fishermen, and assistance for export companies directly affected by current conditions.
Park also expressed his intention to pursue basic income, a signature economic policy of President Lee Jae-myung, from a long-term perspective. "Even if immediate full implementation of basic income is difficult, we need to take a long view and prepare by reviewing the outcomes of rural basic income pilot projects," he said, adding that he would consider rolling out the main program in depopulating regions after verifying the policy effects of pilot projects currently underway in some local governments.
Regarding compensation measures for oil refiners' losses due to the petroleum price ceiling, he explained that "we plan to determine losses based on oil refiners' costs to match actual losses." However, he added that given the highly uncertain situation in the Middle East, it is difficult to estimate the scale of fiscal support at this time.
Park clearly opposed advance payment of the National Pension childbirth credit. Currently, the childbirth credit is a post-payment system that recognizes contribution periods when receiving pension benefits. In response to criticism that beneficiaries find it difficult to feel immediate benefits, the Ministry of Health and Welfare has been pushing to convert to an advance payment system where the state pays on behalf of parents at the time of childbirth.
Park argued that "considering public perception and efficiency of overall national fiscal management, maintaining the current post-payment system is desirable," adding that "with limited fiscal capacity, converting to advance payment would inevitably require immediate issuance of massive deficit-covering government bonds."
Regarding his role in proposing the so-called "Tada Ban Law" in 2019 and leading its passage through the National Assembly plenary session, Park called it "a model case of innovation" while expressing that "it is regrettable that Tada refused social compromise and ultimately ended its business on its own."
Park's National Assembly confirmation hearing is scheduled for the 23rd of this month.