Park Hong-geun, nominee for Minister of the Office for Government Policy Coordination (Budget), pushed back against criticism that the government's planned supplementary budget amounts to election-driven spending ahead of the June 3 nationwide local elections, telling lawmakers Wednesday that it is "a crisis response to the Middle East situation."
At his confirmation hearing before the National Assembly's Strategy and Finance Committee, Park was asked by Rep. Park Sung-hoon of the People Power Party whether the supplementary budget is "a crisis response or an election response." The nominee drew a clear line, saying, "This supplementary budget is intended to address urgent needs arising from the Middle East situation."
When legislators pointed out that "past research shows cash-like support policies such as consumption coupons had only temporary effects," Park countered that "there are assessments that such measures contributed to a rebound during a low-growth phase," adding that "the possibility of this supplementary budget stimulating inflation is also limited."
On specific items to be included in the supplementary budget, Park said "measures to stabilize supply chains, including petroleum stockpiling, should be included." Regarding support for industries affected by the Middle East crisis, he explained that the government is preparing measures reflecting increased logistics costs, among other factors. He added that "one of the supplementary budget's purposes is to address mass youth unemployment," noting that "job reinforcement measures are needed, including for young people categorized as 'resting'" — a term referring to economically inactive youth who are neither employed nor seeking work.
Park made clear that the budget would be funded solely through excess tax revenue, with no additional government bond issuance.
However, he was cautious about whether livelihood support payments would be distributed to all citizens. When Strategy and Finance Committee Chair Im Yi-ja urged that "cash should not be sprayed to all citizens through the supplementary budget," Park responded, "I have not yet been briefed on the details, such as whether payments would go to everyone, only some, or not at all." He said he would "structure the supplementary budget in a way that helps address economic conditions while minimizing inflationary impact."
On the same day, the confirmation hearing for Hwang Jong-woo, nominee for Minister of Oceans and Fisheries, was held at the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee. Questioning focused on safety measures for Korean seafarers and energy supply plans in the event of a Strait of Hormuz blockade.
Hwang said, "We are preparing to ensure our seafarers can disembark in a crisis situation," adding that "an emergency task force is monitoring the situation around the clock."
Regarding supply plans for key energy resources such as crude oil and liquefied natural gas (LNG), Hwang explained, "Once we determine in consultation with the Ministry of Trade, Industry and Energy where to source energy, the Ministry of Oceans and Fisheries will mobilize nationally essential vessels to transport it." Nationally essential vessels are part of a system that maintains a fleet of Korean-flagged ships of a certain scale to transport goods vital to the national economy and military supplies during crises such as war. Currently, 88 vessels are designated under the program.
When lawmakers pointed out that tax-exempt fuel for the fishing industry is not included in the government's petroleum price ceiling, Hwang responded, "I will actively coordinate to ensure that fuel cost support for fishermen, including designation under the price ceiling system, is reflected in the supplementary budget." On plans for oil price-linked subsidies, he said, "Work is underway as part of the supplementary budget process."
Ruling and opposition parties reached an agreement to adopt the confirmation hearing report for Hwang with a finding of qualification.