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Fiscal Policy Issues in Korea after the Current Crisis

dc.contributor.authorKiseok Hong
dc.date.accessioned2015-04-10T10:16:58Z
dc.date.available2015-04-10T10:16:58Z
dc.date.issued2010-07-15
dc.identifier.urihttp://hdl.handle.net/11540/3813
dc.description.abstractThis paper examines fiscal policy issues in the Republic of Korea (hereafter Korea) after the 2009 global financial crisis, including the timing of fiscal policy responses, the effectiveness of expansionary measures, and the long-term implications for government debt. In order to evaluate more accurately Korea’s fiscal response since late 2008, this paper conducts an empirical analysis using historical data from Korea and other countries and derives stylized patterns on counter-cyclicality of fiscal policy and its role in the recovery process. The analysis suggests that Korea’s fiscal stimulus in 2009, while having contributed greatly to the economy’s fast recovery, was unusually large compared with typical fiscal responses during economic downturns. This paper also investigates whether the rapid increase in Korea’s fiscal debt burden is admissible in terms of long-term sustainability. Although existing evidence suggests that Korea’s fiscal debt is still manageable, the sizeable deficit and the increasing trend in the debt to GDP ratio in recent years call for vigilance. The paper concludes with some suggestions for fiscal consolidation in Korea: a stricter practice of medium-term budget planning, expansion of automatic stabilizers and reduction of discretionary components, use of more comprehensive measures of government debt, and further reforms in the national pension system are discussed.
dc.languageEnglish
dc.publisherAsian Development Bank
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.titleFiscal Policy Issues in Korea after the Current Crisis
dc.typeWorking Papers
dc.subject.expertAlleviating Poverty
dc.subject.expertAnti-Poverty
dc.subject.expertExtreme Poverty
dc.subject.expertFight Against Poverty
dc.subject.expertGlobal Poverty
dc.subject.expertHealth Aspects Of Poverty
dc.subject.expertIndicators Of Poverty
dc.subject.expertParticipatory Poverty Assessment
dc.subject.expertPoverty Eradication
dc.subject.expertPoverty Analysis
dc.subject.expertPoverty In Developing Countries
dc.subject.expertPoverty Reduction Efforts
dc.subject.expertUrban Poverty
dc.subject.expertPublic Financial Management
dc.subject.expertFinancial System
dc.subject.expertFinancial Statistics
dc.subject.adbDevelopment Indicators
dc.subject.adbEnvironmental Indicators
dc.subject.adbEconomic Indicators
dc.subject.adbEducational Indicators
dc.subject.adbDemographic Indicators
dc.subject.adbHealth Indicators
dc.subject.adbDisadvantaged Groups
dc.subject.adbLow Income Groups
dc.subject.adbSocially Disadvantaged Children
dc.subject.adbRural Conditions
dc.subject.adbRural Development
dc.subject.adbSocial Conditions
dc.subject.adbUrban Development
dc.subject.adbUrban Sociology
dc.subject.adbPension Funds
dc.subject.adbMutual Funds
dc.subject.adbSocial Equity
dc.subject.adbFinancial Aspects
dc.subject.adbFiscal Policy
dc.subject.naturalPoor
dc.subject.naturalEconomic forecasting
dc.subject.naturalHealth expectancy
dc.subject.naturalSocial groups
dc.subject.naturalPolitical participation
dc.subject.naturalDistribution of income
dc.subject.naturalInequality of income
dc.subject.naturalDeveloping countries
dc.subject.naturalRural community development
dc.subject.naturalMass society
dc.subject.naturalSocial change
dc.subject.naturalSocial policy
dc.subject.naturalSocial stability
dc.subject.naturalPopulation
dc.subject.naturalSustainable development
dc.subject.naturalPeasantry
dc.subject.naturalUrban policy
dc.subject.naturalUrban renewal
dc.subject.naturalPension plans
dc.subject.naturalIndividual retirement accounts
dc.subject.naturalEmployee pension trusts
dc.subject.naturalInvestment management
dc.subject.naturalInvestments
dc.title.seriesADBI Working Paper Series
dc.title.volume225
dc.contributor.imprintAsian Development Bank
oar.themePoverty
oar.themeFinance
oar.adminregionEast Asia Region
oar.countryPeople's Republic of China
oar.countryHong Kong
oar.countryChina
oar.countryRepublic of Korea
oar.countryMongolia
oar.countryTaipei,China
oar.identifierOAR-004164
oar.authorHong, Kiseok
oar.importtrue
oar.googlescholar.linkpresenttrue


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  • ADBI Working Papers
    The Asian Development Bank Institute (ADBI) Working Paper series is a continuation of the formerly named Discussion Paper series which began in January 2003. The numbering of the papers continued without interruption or change. ADBI was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in Asia and the Pacific.

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