Kim Dong-yeon, nominee to become the deputy prime minister for the economy and finance minister, reaffirmed that the economic policy under the new administration of South Korean President Moon Jae-in will be focused to increase jobs and income and ensure fair playing field in the economy.

The government will keep up expansionary fiscal stance and seek extra budget to kick-start the economy as the next five years would be the “last chance” to revive the slow-moving economy, he told reporters upon appointment on Sunday.

Instead of inflating growth and employment figures through pork-barrel projects, the increased budget would be spent on creating lasting jobs and hoisting up growth potential, said the nominee whose appointment demands legislative approval.

He indicated that the scope of budgetary expansion could be moderated from Moon’s campaign promise of increasing annual fiscal spending by an average 7 percent during his term, doubling the on-year average growth of 3.5 percent under the previous administration. Extra 178 trillion won ($159 billion) would be needed to keep up such growth.

Korean shares mildly kept up winning streak upon expectations for normalization in economic policy despite weaknesses around the world due to a scandal in Washington over President Donald Trump’s alleged meddling in federal investigation.

As of 2:00 p.m. the main Kospi was up 0.4 percent at 2,298.16 and the secondary Kosdaq up 0.03 percent at 642.65.

Kim said the government would be closely discussing policies with the legislative to reflect public wishes in economic policy.

“We will focus on addressing structural weaknesses of the economy,” he said.

Kim of a rare background of building up career in the elite finance ministry after attending night school and passing the civil servant state test while working for a living as a bread-winner for his family since young age was handpicked to spearhead Moon’s economic slogan of “growth for the ordinary people.”

The economy has lost vitality not because of temporary factors but from structural problems in education and job field stemming from social over-reliance on large companies, he said.

Kim would be working with Chang Ha-sung, chief of staff for policy, and Kim Sang-jo, nominee for the top position at the Fair Trade Commission - both known to be critics to the family-run chaebol establishments - and Kim Kwang-doo, vice chairman of the National Economic Advisory Council who had previously called for tax hikes for stronger social security.

By Cho Si-young and Chung Seok-hwan

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]