New finance minister to push for aggressive macroeconomic policiesUpdated: 2014-07-17 06:23:25 KST
"Low-growth, a downsized economy in pursuit of better balance, an absence of notable results---I think this is the reality we are faced with."
New Finance Minister Choi Kyung-hwan has made it clear that he will be proactive in his new role.
In his inauguration speech Wednesday, Choi said passive macroeconomic policies have caused the Korean economy to slow down -- and have also resulted in less tax revenue.
One of his plans to tackle those problems was to reform 'unnecessary' restrictions that keep businesses from finding new investment opportunities.
"When companies do well, they will, in return, create more jobs and up the earnings for households, which will spend more. We need to establish this virtuous cycle in order to strengthen domestic demand."
As he has long been hinting since being nominated, Choi reiterated plans to ease the debt-to-income and loan-to-value ratio regulations for mortgage loans to prop up the real estate market.
Experts say the challenge will be doing so WITHOUT drastically increasing already-soaring household debt on top of trying to boost consumer sentiment which dipped after the April ferry disaster.
Choi said the nation's growth outlook will have to be revised down, and added the ministry will not seek a supplementary budget this year.
Laah Hyun-kyung, Arirang News.
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