Daily Management Review

South Korea to cut budget for first time since 2010


The South Korean government will reduce the nation's budget in 2023 in response to the rise in global interest rates.

Republic of Korea via flickr
Republic of Korea via flickr
This is the first move of this kind for the previous 13 years.

"We're making cuts to our spending. The previous administration incurred substantial debt, which we are unable to pay," the country’s finance minister, remarked.

He claimed that the COVID-19 pandemic-era administration of President Moon Jae-in, which preceded the present administration, left behind a huge budget deficit. Currently, the anticipated budget for the upcoming year is 679 trillion won ($521 billion).

source: reuters.com