Lee presides over Emergency Economy TF…The 2nd supplementary budget of 'at least ₩20 trillion' likely to gain momentum

Presided over the first Emergency Economy Inspection TF meeting for 2 hours and 20 minutes

'First administrative order' for restoring the livelihood of the people

"What can be realized immediately is the supplementary budget"

Direct communication with vice ministers and working-level officials

Lee Han-joo mentions local currency

"It has a painkiller effect for reviving the people's economy"

On his first day in office, President Lee Jae-myung ordered the formation of the Emergency Economy Inspection Task Force (TF) as his ‘first administrative order’. With the TF now fully operational under the president's direction, discussions on forming a second supplementary budget are expected to accelerate.

In his address to the nation at the National Assembly, President Lee stated, "I will start by recovering the livelihood of the people and reviving the economy," adding, "We will use national finances as a primer to restore the virtuous cycle of the economy." Meeting with reporters at the presidential office, President Lee said, "We need economic policies that can be implemented immediately," and added, "The core among them is likely to be the formation of a supplementary budget."

President Lee presided over the first Emergency Economy Inspection TF meeting from 7:30 p.m. for 2 hours and 20 minutes. The meeting was attended by vice ministers and grade 1 or bureau-level officials appointed during the Yoon Seok-youl administration. Spokesperson Kang Yoo-jung said after the meeting, "President Lee specifically asked about the fiscal capacity for the supplementary budget and the immediate stimulus effect it would bring, and ordered proactive measures for reviving the people's economy and risk management." Kang added that President Lee shared his personal cell phone number with attendees, asking, "Please suggest good policies with a flexible and proactive attitude."

President Lee also ordered all government officials, who had been dispatched to the presidential office under the Yoon Seok-youl administration and returned to their original positions due to the dismissal of former President Yoon, to return to the presidential office.

With the TF now fully operational, the supplementary budget formulation is expected to pick up speed. The Democratic Party of Korea initially argued that a supplementary budget of at least ₩35 trillion was necessary. The ruling and opposition parties had already agreed on a supplementary budget bill of ₩13.8 trillion last month. In politics, it was predicted that a second supplementary budget of ₩20 trillion, which is the initial target minus the first supplementary budget, would be implemented.

Lee Han-joo, who is regarded as the leading candidate for the first Chief of Policy at the presidential office of the Lee Jae-myung administration and is the head of the Democratic Research Institute, appeared on a radio program and said, "The standard for the supplementary budget will be around ₩20 trillion, but we need to look closely at income inequality and the management situation of small businesses and the self-employed to see how best to support them." He mentioned the regional currency (local gift certificates), which President Lee pledged to expand, saying, "It has a painkiller-like effect in reviving the people's economy. The people's economy will improve dramatically."

Han Jae-young/Kim Hyung-kyu, reporters jyhan@hankyung.com