Korea’s top economic policymaker voiced concerns Thursday over “excessive” welfare demand, saying that such populism-driven policies could end up shifting burdens to future generations.
“Excessive welfare deriving from populism dampens the will to work, undermines fiscal soundness and shifts the burden of payment to the next generation,” Finance Minister Bahk Jae-wan said in a speech at an international forum in Seoul.
“Unnecessary welfare benefits handed out now will boomerang on the next generation as welfare-related tax spikes,” he added.
The remarks were the latest in his opposition to a recent spate of welfare proposals floated by politicians amid worries that many of them are just trying to woo voters ahead of major elections slated for this year.
South Korea is to hold parliamentary and presidential elections in April and December. Political parties are rushing to unveil welfare programs and campaign pledges, many of which policymakers see as “populist” and fiscally “unsustainable.”
Mindful of its possible impact on the nation’s fiscal health, the government recently launched a task force to study the feasibility of such welfare pledges.
The task force estimated that it will cost up to 340 trillion won ($303.3 billion) over the next five years to carry out all the welfare-related proposals unveiled by politicians.
(Yonhap News)
