President Lee Jae-myung on Wednesday again dismissed calls for fiscal austerity, citing the International Monetary Fund's (IMF) positive assessment of South Korea's fiscal stance.
In a post on X, formerly Twitter, Lee shared a media report and wrote, "This is a must-read article for those who unconditionally advocate austerity, if they truly care about the country." The report quoted IMF spokesperson Julie Kozack as saying at a regular briefing that "Korea's debt is sustainable, and the risk of a debt crisis is low."
Lee particularly highlighted Kozack's remark that "Korea is currently maintaining a very prudent policy stance," adding that "although there is some fiscal expansion at present, this fiscal expansion is a very appropriate measure."
He also cited the part where Kozack explained that the expansion is "supporting structural reforms ultimately aimed at boosting Korea's productivity," and that "given the demographic pressures Korea faces, such productivity gains will be a very important factor for future economic growth."
Earlier, on the 5th, Lee posted on X a report citing the Korea Public Finance Institute's analysis of the IMF Fiscal Monitor, which showed that Korea's projected net debt ratio was far lower than that of major economies. He wrote at the time, "Strange people who sing the austerity tune at every turn."
At a Cabinet meeting on the 12th, Lee said, "Now is the time to build potential through investment," adding, "We must not fall into the trap of populist austerity arguments that deceive the public." He has been pushing back against austerity claims day after day.
