The difficult task facing Hong is to maintain fiscal stability while planning a budget that supports increased spending on social welfare and job creation.
Former finance minister Kim Dong-Yeon was sacked in November, partly because he failed in that respect. In his budget, for example, Kim proposed to increase subsidies for SMEs to offset the impact of the wage hike but also a 10.2% increase in corporate tax, which in turn added to the operational costs of companies.
It is much too early to make a judgement on how Hong will perform given that he has been in his role for only a couple of months, which explains his middling-to-low ranking in our annual analysis of finance ministers performance across the Asia Pacific region. But it is clear that the country’s employment situation and the income gap among households will be key indicators of whether he lives up to his expectations as the top economic policymaker.
Hong Nam-Ki ranks above Malaysia’s Lim Guan Eng, Thailand’s Apisak Tantivorawong, Taiwan’s Su Jain-rong, and Japan’s Taro Aso.
Source : https://www.financeasia.com/article/hong-nam-ki-time-will-tell-if-his-plan-for-south-korea-works/450437
