'Order No. 1' is the launch of Emergency Economic Response TF…Lee Jae-myung: 'Using fiscal resources as a priming water to revive the virtuous economic cycle'

Measures for Economic and Livelihood Recovery

Acceleration expected in forming 20 trillion won supplementary budget

Lee Han-joo mentions local currency

'Painkiller effect for revitalizing the people's economy'

President Lee Jae-myung stated on the 4th, "We will start by restoring livelihoods and reviving the economy," and gave his 'Order No. 1' as president to form an Emergency Economic Response Task Force (TF). President Lee immediately convened working-level officials of relevant ministries and said he would begin working on formulating a supplementary budget.

In a 'Message to the People,' President Lee said, "We will use national finances as a priming pump to restore the virtuous cycle in the economy." Previously, The Minjoo Party of Korea claimed that at least 35 trillion won in supplementary budgets would be needed to help counter the economic slowdown and support small business owners and the self-employed. Subsequently, the government, the Democratic Party, and the People Power Party agreed last month on a supplementary budget bill totaling 13.8 trillion won. This led political circles to speculate that, with the launch of the Lee Jae-myung administration, a second supplementary budget worth 20 trillion won (excluding the first) could be implemented.

With President Lee making it clear that national finances will be used as a priming pump, supplementary budget formulation is expected to accelerate. After announcing the nomination of the prime minister at the Yongsan presidential office on this day, President Lee was asked by reporters and answered, "We need policies for economic revitalization that can be implemented immediately," and "Among them, the key is likely to be the supplementary budget." He added, "If possible, as early as this evening (the 4th), we will gather not only the heads but also working-level officials of all relevant ministries to thoroughly check what specific economic revitalization policies can be implemented right away, their size, their methods, and procedures." Kang Yoo-jung, spokesperson, conveyed that President Lee's first executive order was to form the Emergency Economic Response TF.

Lee Han-joo, head of Democratic Research Institute, who is being strongly discussed as the new administration’s first chief policy officer in the presidential office, appeared on MBC radio this day and said, "(The size of the supplementary budget) will likely be around 20 trillion won, but we need to closely examine the income gap, how small and self-employed businesses are doing, and see what the best way to support them is." This suggests that the scale of the second supplementary budget may increase beyond initial expectations.

Director Lee also mentioned the local currency (local love gift certificates), which President Lee pledged to expand, saying, "It works like a painkiller in reviving the people’s economy," and added, "It can give a 'pop' and rapidly improve the livelihood economy."

Reporter: Han Jae-young jyhan@hankyung.com