(KPL/Yonhap) President Lee Jae Myung said Thursday the government has no choice but to pursue an expansionary fiscal policy for the time being to boost a sluggish economy, indicating the government could spend more in 2027.

"For the time being, we have no choice but to pursue an expansionary fiscal policy," Lee told a policy briefing by the Ministry of Economy and Finance, adding that a 2027 budget plan also needs to be based on an expansionary fiscal policy

Lee assessed that the economy has been on a steady downward trend and said, "It needs the state's efforts (for the economy) to hit the bottom and draw an upward curve."

Lee also urged a government task force to speed up its work on reforming how economic crimes are punished, saying the focus should shift from lengthy criminal cases to stronger financial compensation and fines.

"Criminal laws often end up punishing working-level officials rather than corporate executives or those who actually profit. Moreover, investigations and trials can drag on for five or six years," Lee said. "Such punishments fail to function as an effective economic sanction."

Lee referred to a company whose name ends with the sound "pang" as having violated regulations, apparently alluding to e-commerce operator Coupang, which is under investigation over a massive personal data breach.

"Those people are not afraid of punishment at all," he said.

At Tuesday's Cabinet meeting, Lee cited the Coupang case in arguing that fines imposed on companies should be proportionate to the severity of their violations, rather than relying primarily on criminal punishment.

Stressing the need to impose economic burdens commensurate with illegal acts in the economic sector, Lee urged the task force to swiftly draw up measures, adding that "speed is the key."

During a briefing by the National Tax Service, Lee ordered a thorough investigation into tax evasion by high-income earners and entities generating non-tax revenue, calling for hiring more officials dedicated to tracking tax evaders.

"Considering the additional taxes that could be collected, the revenue would more than cover labor costs," he said, suggesting a supplementary budget could be considered for the tax collection team if needed.

KPL