Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok expressed deep regret over the opposition party’s unilateral budget cuts, stating, “The economy doesn’t operate on its own, and the livelihood of the people doesn’t recover for free.” In a public statement on December 2nd regarding the opposition’s independent budget cut proposal, Choi criticized the opposition’s actions on November 29th, when they unilaterally processed the budget cut proposal in the special committee on budget and accounts and announced their plan to pass it in the main session.
He argued that adding to the budget should be done through bipartisan agreement, especially if there are important projects, and noted that the opposition is demanding the government to make supplementary budgets after cutting the initial proposals. Choi emphasized that “the entire world is in a war without gunfire,” yet the opposition is focused on political strife, holding the budget hostage and leaving essential support for businesses unmet.
Choi highlighted the serious global economic challenges, including heightened protectionism with the new U.S. administration, supply chain instability, and the complex global crisis aftermath that intensifies hardships for vulnerable groups like the common people and small business owners. He warned that the opposition’s unilateral budget cut would exacerbate the risks faced by the already struggling economy.
Criticizing specific budget cuts made by the opposition, Choi cited significant reductions in government funds essential for creating industrial ecosystems and R&D budgets crucial for future growth drivers, such as basic research, quantum technology, semiconductors, and biotechnology. Additionally, the opposition proposed slashing the contingency reserve to less than half its previous level, undermining the ability to respond swiftly to urgent changes like those encountered during the 2019 response to Japan’s export regulations.
Choi also pointed out that the tax revision bill, which the opposition intends to pass alone, excludes agreed measures to expand tax support for strategic national technologies, such as semiconductors and AI, which are crucial for revitalizing domestic demand and alleviating burdens on small business owners.
Furthermore, he noted that the opposition trimmed budgets for key social mobility improvement projects, such as youth leap accounts and scholarships, as well as funds crucial to crime prevention efforts like those tackling drug and deepfake crimes. Such cuts could severely hinder the government’s response capabilities.
Choi urged the opposition to withdraw its unprecedented unilateral budget cut proposal and engage sincerely in negotiations, stressing the urgent need for a coordinated response to external uncertainties and economic challenges that require the efforts of both the public and private sectors, as well as bipartisan cooperation.