Park Hong-geun: Strategic Budgeting & Economic Vision for South Korea
Park Hong-geun, nominated as the inaugural head of South Korea’s newly formed Planning and Budget Ministry, arrived at the ministry’s temporary office Tuesday, outlining a vision to transform the agency into a central hub for long-term national strategy.
Park, a four-term lawmaker from the Democratic Party, told reporters he intends to formulate a “30-year national strategy” to address what he described as compounding crises: low economic growth, a rapidly aging population, climate change, regional decline and rising inequality. He emphasized the necessitate to incorporate on-the-ground perspectives into the development of these strategies, drawing on his experience serving on the National Assembly’s Budget Committee.
The appointment comes 36 days after the previous nominee, Lee Hye-hoon, withdrew her candidacy, according to the New Daily. Park’s nomination was met with some scrutiny, as he was still registered as a candidate in the upcoming Seoul mayoral election until recently, with promotional material referencing his candidacy remaining on his social media accounts even after his appointment, as reported by the New Daily.
Park signaled a potential shift in fiscal policy, stating, “The national budget is not an endless well,” and pledged to streamline spending and maximize efficiency. However, he simultaneously acknowledged the need for “active fiscal policy” to support a struggling economy. He emphasized the importance of a re-evaluation of budget allocation structures.
He similarly highlighted the importance of fiscal democracy, stressing the need for collaborative budgeting between the ruling and opposition parties. “It is not right for the National Assembly’s review authority to be ignored, nor is it right for the ruling party to unilaterally manage the budget,” he stated, according to the Korea Broadcasting System (KBS).
Park addressed his acceptance of the ministerial nomination while preparing for a run for Seoul mayor, stating he prioritized “the call of the nation” over his political ambitions. He underscored the urgency of filling the leadership void at the Planning and Budget Ministry, citing the impending deadlines for the 2025 budget plan and the May National Fiscal Strategy Meeting.
When questioned about the possibility of a supplementary budget, Park offered a cautious response, stating it would be a matter for discussion between the presidential office and relevant government ministries. He identified the cultivation of clusters focused on artificial intelligence and robotics as a critical component of long-term economic growth, arguing that expanding the economy is essential for ensuring fiscal soundness and sustainability, as reported by the Maeil Business Newspaper.