Deputy Prime Minister nominee Choo Kyung-ho announced that he would respond by fine-tuning the high inflation system caused by macroeconomic cycles, and that finance would be managed by a bureaucratic monopolistic “national interest” system.
At a press conference on the 10th, nominee Chu said at a press conference on the 10th, "I am trying to find a way to create a combination that has a minimal impact on price instability within the scope that does not harm macro-stabilization efforts." ,” he said, revealing a macroeconomic response policy based on fine-tuning.
In 2003, nominee Choo was the head of the banking system section of the Ministry of Finance and Economy, and was in charge of acquiring shares in KEB by Lone Star, an American private equity fund. limited to
Regarding compensation for the loss of self-employment, the election pledge of the elected president, he said, “The top priority is to stabilize the living price and livelihood of the common people. ”, and announced it as a subordinated target for fine adjustment by inflation.
He continued, “A lot of people say that fiscal spending will be incurred if the supplementary budget is added and that it will conflict with inflation. It will have to play a complementary role, such as caring for the class, investing in the future, and developing technology.”
Regarding ‘price policy’, he said, “It is not an era in which the government can directly manage and control prices, and policy tools are very limited. We will have to focus on taxation, various efforts to stabilize supply and demand, and improvement of the distribution structure. I will do it,” he said, revealing a fine adjustment to the high price system through utility rate management.
Regarding the method of controlling utility rates, he said, “It is natural that the price of the public sector should be driven by supply and demand, but whether they (public companies) did it properly for the stabilization of utility rates (must see). We should not take an irresponsible approach by only managing rooms, accumulating factors that increase prices, and saying that we have to raise them when the time is right,” he said.
Regarding the Moon Jae-in administration's policy of the real estate surge, he said, "The approach of excessively mobilizing real estate taxation in the name of suppressing speculative demand to burden the public and to set house prices through this is wrong. Normalization of excessive property tax and transfer tax is necessary, and some restrictions on redevelopment and reconstruction should be relaxed. If it is too fast, it can cause another side effect.”
Regarding the minimum wage, he predicted the abolition of the minimum wage system, saying, “While successive governments have been dealing with the guarantee of a certain level of wages, it has become impossible to afford on the job site, which has led to the loss of jobs for the vulnerable and reduced income.”
At a press conference on the same day, he said, "I will meet frequently so that the meeting between the governor of the BOK and the deputy prime minister of the economy is no longer news." , hinted at 'intervention' in interest rate decisions.
On the 1st, BOK governor nominee Chang-yong Lee said, “As the rate of interest rate increase in the US will be fast, it is natural that the interest rate gap will narrow or reverse. The effect of the interest rate gap between Korea and the US on capital outflow is still small,” he said.
He continued, “When I become governor of the BOK, I will discuss how to implement policies on the household debt issue with the Financial Services Commission and the Financial Supervisory Service. In times like these, it is the BOK’s job to say that you don’t know what you don’t know.”
Lawrence Summers, the then-Democratic Treasury Secretary during the Clinton administration, told Bloomberg on the 9th that "For every 75 years that inflation has risen above 4% and unemployment has fallen below 5%, the US economy is in recession within two years."
The U.S. consumer price inflation rate was 7.9% in February and soared with the forecast of 8.5% in March (announced on the 12th), and the unemployment rate reached 3.6% in March, with inflation outstripping wage growth, warning of stagflation in a recession. .
Bloomberg reported on the 9th that "in a survey of economists, 27.5% of respondents were concerned about the possibility of a recession in the next 12 months, 7.5 percentage points higher than last month."
In Japan, as the yen depreciated sharply, it fell to 124.3 yen per dollar on the 10th.
Japanese media predicted on the 9th that if the exchange rate is 116 yen and the crude oil price is $105 per barrel, the current account deficit for fiscal 2022 (April this year to March next year) is 8.6 trillion yen, and if it exceeds 120 yen, the current account deficit is 16 trillion yen, 3% of GDP did.
Japan's current deficit was 1.18 trillion yen in January, and it was the current account deficit during the second oil shock in 1980.
The Ministry of Strategy and Finance made a private report on the 6th after revising the 'economic growth in the mid-2% range, inflation in the mid-4% range, and gross national income (GNI) growth rate in the 0% range' to the transition committee, and on the 29th of last month, the IMF and the '2022 annual consultation result report' ' suggested an economic growth rate of 3.0% and an inflation rate of 3.1%.
Up to this point, the Korean government's publicly announced growth rate was 3.1%, and the OECD's Korea Development Institute (KDI) all presented 3.0%.
On July 23, 2003, the Financial Supervisory Service (FSS) and the Ministry of Finance and Economy’s Financial Policy Bureau did not judge KEB to be insolvent, but related materials such as 'The Financial Supervisory Commission meeting plan related to the approval of Lone Star's excessive holding of Lone Star' of the Ministry of Finance and Economy's Banking System Division Manager (Kyung-ho Choo) on July 23, 2003 Based on the obtained documents, OhmyNews reported on the 12th that an official letter was sent to the committee to ask for cooperation in the takeover of exceptions.
Candidate Chu stated that the enforcement was in the interest of the nation.