South Korea drafts an aggressive spending plan for 2022

South Korea drafts an aggressive spending plan for 2022

September 01, 2021: On Tuesday, South Korea’s government unveiled an aggressive spending surge in the final annual budget of President Moon Jae-in’s five-year term that pushes out any prospect of achieving balanced budgets between a worsening fiscal deficit.

South Korea plans to spend a record 604.4 trillion won in the coming year, 8.3% more than the current year’s budget before two additional emergency spendings were drafted to offer pandemic relief to households.

The record spending plan will take South Korea’s debt-to-gross domestic product (GDP) ratio to 50.2%, the huge on record.

“Our debt will exceed the economy by 50% in the medium-term, but, as we start to turn the things around for a better fiscal standing, we expect a sizable improvement in financial balance of payments in the previous year,” a budget official at the finance ministry said.

By the year 2025, South Korea expects the ratio at 58.8%, according to the ministry.

The coronavirus pandemic has forced the left-leaning Moon Jae-in government to compromise on its financial goals, offering ambitious pandemic relief packages in six extra financial outlays since early in the previous year. The debt-to-GDP ratio had ballooned from about 40% when it took office in 2017.

The August 31 budget is seen as a balancing act amid pouring funds into badly needed social services to tackle an aging economy and reduce increasing income inequality while avoiding further strain on the country’s finances.

About a third of the total expenditure, 216.7 trillion won, allocating for welfare and jobs to cover that rise social expenses as the fastest-aging economy among the Organization for Economic Co-operation and Development (OECD) creates long-term issues for the country.

The government has also earmarked 11.9 trillion to spend on environment-related areas to work towards the country’s carbon neutrality goal by 2050. It proposed 55.2 trillion won in spending on national defense.

The finance ministry said it would issue 167.4 trillion won of bonds in 2022. The net surge in treasury bonds is projected at 94.9 trillion won.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

Tristar Coatings | Transforming The Painting Industry With Innovation | Svetlana Melkova

There are many challenges facing the painting and coating industry today, and the pandemic just added fuel to the fire. These include raw material shortages and the globalization of the painting and coating market. Other challenges include increasing regulations due to environmental concerns and increasing manufacturing costs and raw materials. Ontario-based Tristar Coatings has been able to leverage its extensive knowledge base and highly skilled chemists to provide the solutions today’s organizations need in the time they require it most. In overarching terms, customer performance requirements can mean increasing product output whilst streamlining the process in which that product is manufactured. This can come in the form of preparing the substrate before the painting process (whether that be with physical or chemical cleaning) or actual product modifications to prevent or promote certain properties in the coating (such as adhesion, corrosion protection, film build, UV resistance, etc.), but Tristar has it all.

The Lake Companies | Making Manufacturing Easier…Forever! | Greg Lake

The Lake Companies knows that to achieve best practices, specific daily business processes must happen and be done as simply as possible, even without human effort. “That’s how we develop our ERP software products. We strive to completely transform internal business processes and revolutionize the user experience with our software,” says Greg Lake, President of The Lake Companies. “Building the support for best practices in our software allows our customers to achieve far more than they anticipated, while paving the way for growth into advanced IoT and Industry 4.0 technologies. Our Simple, Elegant, and Powerful solutions are built specifically for and seamlessly integrate with Infor’s SyteLine®(CloudSuite®) ERP.”

Cyncly | Preparing Customers for the Future | Andrea Gnoato

Cyncly was created in September of 2022 as the new brand to unite Compusoft, 2020, and their affiliate companies after the two companies merged in 2021. One of the key factors driving the decision to form Cyncly as a global brand was that consumers worldwide wanted a seamless experience when they decided to improve their homes. And because Cyncly had brought together all these industry-leading software solutions – retailers, designers, and manufacturers in kitchens, bathrooms, furniture, windows, and doors – they were in a unique position to provide their customers with the tools to do this. By connecting all these previous disparate elements, they were able to help companies using our software make their consumers’ journeys seamless and put consumers at the heart of what they do.

ArtiFlex Manufacturing | A Leader In Engineered Solutions | Erin Hoffmann

ArtiFlex Manufacturing is a premier resource for design, tooling, prototyping, automation, past model service, factory assist, and low volume tooling/production solutions. The team consists of passionate high-performance people organized in a lean fashion. The company partners with their customers to implement innovative tooling and manufacturing solutions while managing their complex programs.

Tecnomatix | Making Transformative Products | Tony Hemmelgarn

Tecnomatix® is a comprehensive portfolio of digital manufacturing solutions that helps companies to digitalize manufacturing and the process of turning innovative ideas and raw materials into transformative products. It is a software suite that enables organizations to create a digital twin of their manufacturing processes, including robots, automation, material handling systems, and people, to improve the performance of their business. The software is used in various industries such as electronics, automotive, aerospace, and heavy equipment and is currently owned by Siemens AG.