The Korea Times
The International Monetary Fund’s (IMF) recent projection that shows Korea among the countries with the fastest-rising debt-to-gross domestic product (GDP) ratios may be overstated, as the government retains sufficient fiscal capacity and control, Budget Minister Park Hong-keun said Tuesday. At a press conference, Park downplayed the global lender’s concerns over the rapid pace of debt growth, stressing that it is being strictly managed through spending restructuring and enhanced fiscal efficiency. “Projections are inherently uncertain, as they depend on economic conditions, policy responses and timing. IMF forecasts have often exceeded actual outcomes in the past,” Park said. “Korea’s debt level remains comparatively low among major economies. Fiscal sustainability should be assessed not only by the ratio itself but also by the country’s ability to manage it.” Park added that the government has already carried out spending cuts worth about 27 trillion won ($18 billion) this year — the largest on record — and is preparing additional measures, including reducing manda
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