Fiscal Management and Business Cycle Synchronization: A Governance-Based Assessment of South Korea’s Composite Index
Government fiscal health is intrinsically linked to the cyclic regularity of national economic activity. However, fiscal management can be stabilised if the underlying governance framework maintains consistency in economic and social policy implementation. This study analyses the fiscal management of the South Korean government with a specific focus on the composite index of business indicators. The research explores the important role of strategic policy alignment in maintaining fiscal sustainability, evaluating production activity performance in the context of national finance. The study utilises longitudinal trends from South Korea to assess how fiscal management adapts to business cycle indicators. Findings suggest that proactive and consistent policy governance reduces the need for disruptive fiscal adjustments during economic downturns. The research provides actionable insights for policymakers regarding the integration of business cycle signals into long-term national financial governance.
© The Author(s) 2026. Published by RITHA Publishing. This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited maintaining attribution to the author(s) and the title of the work, journal citation and URL DOI.
Article’s history: Received 7th of January, 2026; Revised 2nd of February, 2026; Accepted for publication 17th of February, 2026; Available online: 6th of March, 2026; Published as research article in Volume II, Issue 1(3), 2026.
Yoon, D. (2026). Fiscal Management and Business Cycle Synchronization: A Governance-Based Assessment of South Korea’s Composite Index. Applied Journal of Economics, Law and Governance, Volume II, Issue 1(3), 59-72. https://doi.org/10.57017/ajelg.v2.i1(3).03
Conflict of Interest Statement: The author declares no conflicts of interest.
Acknowledgement/Founding: N/A
Data Availability Statement: Data included in article/supp. material/referenced in article. Data can be accessed.
Ethical Approval Statement: This study is based exclusively on the analysis of publicly available data. It did not involve human participants, personal data, or animal subjects. Therefore, ethical approval was not required.
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