S. Korean gov’t to execute over 65% of 2023 budget in H1

Deputy Prime Minister and Finance Minister Choo Kyung-ho announcing on Thursday while presiding over an emergency meeting of economy-related ministers in Seoul. [Photo by Yonhap]

The South Korean government will seek to frontload about 65 percent of the 2023 national budget in the first half to respond to an economic slowdown, Deputy Prime Minister and Finance Minister Choo Kyung-ho announced on Thursday while presiding over an emergency meeting of economy-related ministers in Seoul.

Choo said the government will swiftly execute the budget from Jan. 2, when the new fiscal year begins, to bring about policy effects as soon as possible, adding the nation’s economy is feared to be worse in the first half of next year than in the second half.

The government will closely watch projects related to people’s livelihoods, including jobs, welfare and stabilizing consumer prices for prompt budget spending, and more details will be announced next week, he said.

Touching on the nation’s economy, the finance minister said the country’s once-volatile financial market is showing signs of stabilizing thanks to anticipations that key economies will slow the pace of rate hikes and the government’s market-stabilizing measures. According to government data, the commercial paper (CP) coupon rate, referred to as the barometer of the short-term money market, has fallen for the 13th consecutive day, while the certificate of deposit (CD) rate also fell to the 3 percent level for the first time since mid-November.

The won/dollar exchange rate, which once rose to the mid-1,400 won range, also fell to the mid-to-high 1,200 won range.

Choo, however, said that the government must remain alert as internal and external uncertainties surrounding the financial market remain high.