IMF backs Korea’s expansionary fiscal policy, Lee says

May 15, 2026, 10:00 am

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President Lee Jae-myung greets merchants during a visit to Moran Market in Seongnam on May 14. /Courtesy of the Presidential Office

South Korean President Lee Jae-myung on Thursday reiterated the need for expansionary fiscal policy, citing a positive assessment from the International Monetary Fund regarding the country’s current fiscal stance.

Lee shared an article on X, formerly Twitter, based on remarks by IMF spokesperson Julie Kozack, writing, “Those who insist unconditionally on austerity should read this article if they truly care about the country.”

The president particularly highlighted Kozack’s assessment that “Korea is currently maintaining a very prudent fiscal policy stance.”

“Although there is currently a somewhat expansionary fiscal stance, such fiscal expansion is a very appropriate measure,” Kozack said, according to the article cited by Lee.

Lee also quoted Kozack as saying that the policy supports structural reforms ultimately aimed at boosting Korea’s productivity.

“Given the demographic structural pressures facing Korea, productivity improvements will be a very important factor for future economic growth,” she said.

Lee has repeatedly emphasized the importance of active fiscal spending to strengthen economic potential and support long-term growth amid slowing domestic demand and demographic challenges.

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