Koh.
Position | Conferences |
Koh presents an overview of the development of public finance in Korea since the 1970s; analyzes its current status; explains the institutional setup and assesses the recent reform efforts; and proposes directions for change to maintain financial health and maximize the productivity of public spending. The Korean government has maintained strong fiscal discipline since the early 1980s, keeping its budget more or less in balance and its debt at low levels. There were large deficits after the economic crisis of 1997, but a return to surplus in 2000 thanks to the buoyant economy and consolidation efforts. The surplus has continued since then. However, various risk factors can adversely affect the government's finances. The aging population and the technological catch-up with advanced economies imply much slower economic growth in the decades ahead. While revenue growth slows, the demand for public expenditure is increasing rapidly. The financial sector's restructuring in...
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