Remarks at National Assembly comprehensive national audit
![Bank of Korea Governor Shin Hyun-song (left) answers questions at the 2026 comprehensive national audit held by the National Assembly's Finance and Economy Planning Committee on Friday. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/10/23/rcv.YNA.20261023.PYH2026102306830001300_P1.jpg)
Bank of Korea Governor Shin Hyun-song said his warnings about expansionary fiscal policy were "not a denial of the government's active role."
Shin made the remark Friday afternoon at the National Assembly's Finance and Economy Planning Committee comprehensive national audit, responding "yes" when Democratic Party of Korea lawmaker Oh Ki-hyung asked whether he was denying the government's active role.
At a monetary policy press briefing Thursday, Shin said there was a need to be mindful of whether fiscal spending was "without any problems," adding that "sustainability must always be kept in mind even if the fiscal multiplier is low." He added that "if temporary revenue sources give rise to ongoing expenditure, sustainability deserves particularly close attention," because "continuing expenditure can create items that become impossible to reverse."
At Friday's comprehensive national audit, Shin clarified that his Thursday remarks were intended to convey that "if the revenue source is temporary, there needs to be a plan for long-term spending, and if obligations arise that require continued outlays, rigidity sets in and it becomes difficult to reverse course."
On the government's role regarding vulnerable borrowers, Shin said South Korea is in a situation where "polarization is quite severe," and that "while income support is of course important, measures for vulnerable borrowers are also urgently needed." He added that "support measures for vulnerable borrowers are largely fiscal in nature, and in that sense fiscal policy and monetary policy must work in harmony."
kimstar@heraldcorp.com
