Choo: R&D budget increases by 10 trillion won over three years

A long debate over the government’s substantial budget cut on R&D projects scheduled for next year added heat to a parliamentary inspection of the Ministry of Korea Ministry of Economy and Finance on Thursday. According to the ministry, it felt the need to cherry-pick given that government spending on R&D programs has risen by a whopping 10 trillion won for the past three years.

“We find it necessary to fix budget plans for closed and segmented fields where money is shared exclusively within particular circles or wastefully distributed to appeal to populism,” South Korean Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said while replying to Democratic Party (DP) Rep. Koh Yong-jin in the National Assembly’s inspection of the administration held at Government Complex Sejong on Friday. “That is why we have made overall adjustments to increase spending on innovative and ambitious R&D strategies.”

 

In other words, he pointed out that the government has recklessly raised spending on R&D projects, adding that it only took three years for the budget to rise from 20 trillion to 30 trillion won - whereas it increased from 10 trillion to 20 trillion won over 11 years. The minister also stated that DP lawmakers have also argued that R&D projects are not only overly fragmented but also show an unsatisfying level of performance.

Meanwhile, the opposition party's lawmakers called upon the administration to explain its outlook that the economy will rebound over the second half of the year, although slowing down in the first half. “The government has raised false hopes by sticking to an unconvincingly optimistic view,” Rep. Kang Jun-hyeon of the main opposition said. “It has talked citizens into believing that the economy will recover in the second half of the year and the country will ensure financial soundness and fiscal rules.”

In response, Minister Choo said that the economy grew by 0.9 percent for the first six months, but growth will double by the end of the year, adding‎ that things will get better as the fourth quarter nears.


Do-Hyong Kim dodo@donga.com