Go to content


Issue Report

Collection of full-length papers and in-depth analysis of economic and management issues.

Effectiveness of Korea's Fiscal Policies and Fiscal Soundness

Effectiveness of Korea's Fiscal Policies and Fiscal Soundness

Moon Weh-Sol

Mar. 18, 2010

Download Effectiveness of Korea's Fiscal Policies and Fiscal Soundness PDF email Print

Originally released on January 12, 2010

I. Fiscal Policy to Fight the Global Financial Crisis

In response to the global financial crisis, the Korean government executed unprecedented large-scale expansionary fiscal policies to stem the rapid slowdown in domestic economic sentiment. The policies include a 28.9 trillion won supplementary budget, twice revision of the tax system, and tax breaks for motorists replacing their old cars. As a result, Korea 's national debt rose to 366 trillion won in 2009, exceeding the initial estimate of 349.7 trillion won with the national debt to GDP ratio reaching 35.6%. Major countries are also pushing ahead with aggressive fiscal policies to respond to the global financial crisis. According to the International Monetary Fund's projection, global fiscal stimulus was forecast at 1.4% of the world's GDP as of January 2009.

For full text (10 pages), click the PDF icon on top.
Go to list