BOK specifies extra budget rollout

[Anchor]

Bank of Korea Governor Lee Chang-yong suggested that as it is difficult to adjust interest rates, it is necessary to quickly implement a supplementary budget.

He unusually and specifically mentioned aspects that could be interpreted politically, such as the timing, amount, and method of the supplementary budget.

Next is reporter Kim Jun-beom.

[Report]

If the Bank of Korea adjusts the economy through interest rates, the government coordinates it through the budget.

Monetary policy is the responsibility of the Bank of Korea, while fiscal policy is the responsibility of the government, and Governor Lee Chang-yong explicitly called for fiscal policy, namely a supplementary budget.

[Lee Chang-yong/Bank of Korea Governor: "The growth rate has fallen below the potential growth rate, and for various reasons, I believe that a supplementary budget is necessary in addition to monetary policy."]

He specified that the timing of the supplementary budget should be "as soon as possible" and the amount should be "15 trillion to 20 trillion won."

He explained that the growth rate may have dropped by 0.2 percentage points, and to make up for that, the scale should be around that amount.

He did not shy away from the ongoing debate between the ruling and opposition parties over "universal support" versus "targeted support" during supplementary budgets.

[Lee Chang-yong/Bank of Korea Governor: "If self-employed individuals are struggling, isn't it more reasonable to support them specifically rather than providing indiscriminate support to the entire population?"]

He also pointed out the lack of results from the operation of the consultative body between the ruling and opposition parties and the government, which has been established but has not produced outcomes.

Being aware of the potential for political interpretation, he stated that his remarks are very much an economic message.

[Lee Chang-yong/Bank of Korea Governor: "Dividing the consultative body into two tiers: one side dealing with political issues, and the other with economic issues handled by practitioners... Is this also a political statement?"]

Governor Lee stated that the recent changes in the situation are significant and that he will present the results of a mid-term check around next week before the economic outlook announcement in February.

This is also an unprecedented move.

KBS News, Kim Jun-beom.