DPK Welcomes Government Budget as 'Largest-Ever Fiscal Investment to Support Public Hope'

The Democratic Party's Policy Committee has evaluated the Lee Jae-myung administration's 2027 budget proposal as "a grand transformation and leap forward for South Korea, and a bold investment for the people."

In a press release issued today under the names of Policy Committee Chair Kwon Chil-seung and Rep. Jeong Tae-ho, the chief coordinator for budget and accounts, the committee stated, "This is the first budget plan fully compiled by the sovereign people's government."

Highlighting that the economy has achieved steady quarter-on-quarter growth compared to the same period last year since the launch of the Lee Jae-myung administration, the policy committee analyzed, "This is a V-shaped economic recovery driven by the active fiscal policies of the sovereign people's government."

It explained, "The budget for next year focuses on pulling up potential growth rates to strengthen South Korea's economic vitality, while spreading the fruits of growth to resolve structural polarization."

Referring to the increased budget allocations for key investment items such as the three major mega-projects, the committee noted, "This marks the largest-scale fiscal investment in history for South Korea's growth and the future of its citizens."

Addressing criticism that the government's expansionary fiscal stance is out of sync with monetary policies like the Bank of Korea's recent benchmark interest rate hike, the policy committee refuted, "Inflationary pressures are being minimized, so it is difficult to view this as out of sync."

It further explained, "The budget for next year expands support to absorb the side effects of rate hikes through fiscal measures, including special debt adjustment programs for long-term delinquencies among small business owners affected by COVID-19, thereby easing the burden on vulnerable groups caused by high interest rates."

"During a period of rising interest rates, fiscal policy is acting as a buffer against shocks to people's livelihoods, meaning expansionary fiscal policy and interest rate hikes are playing a complementary role," the committee added. "Through the National Assembly's review process, we will make complementary improvements so that fiscal policy can backstop South Korea's future and the people's hopes."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.