President Lee Jae Myung on May 15 quoted comments by the International Monetary Fund that positively assessed the country's fiscal stance, repeating his rebuttal of arguments for austerity. He is shown on May 14 speaking at a meeting of his senior secretaries and aides at Cheong Wa Dae in Seoul. (Cheong Wa Dae)

By Xu Aiying


President Lee Jae Myung on May 15 rebutted political calls for fiscal tightening, quoting a positive evaluation by the International Monetary Fund (IMF) on the country's fiscal stance.

On his X account, he shared an article and said, "This article is a must read for those who advocate for unconditional austerity if they truly care about the country."

The article cited comments made by IMF Spokesperson Julie Kozack on May 14 in a regular briefing at the fund's headquarters in Washington. She said, "The debt is sustainable, and there's a low risk of debt distress in Korea."

President Lee also highlighted another key comment by the spokesperson: "We assessed Korea's debt to be not only sustainable, but to have a low risk of debt distress. So again, Korea's position with respect to debt is quite favorable compared to many other countries around the world."

He also cited Kozack's comment, "Right now, there is some fiscal expansion, but this fiscal expansion is very appropriate because it is aimed at supporting structural reforms that ultimately aim to boost productivity in Korea, which will be important for future economic growth, given demographic pressures in the country."

Last month, the IMF released its World Economic Outlook and Fiscal Monitor reports saying Korea's general government debt was 52.3% of GDP in late 2025 and predicting 63% by 2030.


xuaiy@korea.kr