President Lee repeats 'economy' 24 times: 'Now is the timing for an extra budget'

Emphasis on Fair Growth and Livelihood Economy

"Time for the Government to Act" — Calls for Swift Supplementary Budget

"Will Restore Transparency and Usher in the KOSPI 5000 Era"

President Lee Jae-myung, in his first policy speech at the National Assembly since taking office on the 26th, said, "We must open the door to 'fair growth', which creates new engines of growth and shares both opportunities and outcomes of growth, in order to mitigate polarization and inequality and move toward a 'society where everyone prospers together'." He emphasized the recovery of people's livelihoods and economic growth, repeatedly mentioning 'fairness' and 'rules' as key points for balancing these goals, according to interpretations.

In his supplementary budget policy address delivered at the plenary chamber that day, President Lee asserted, "Restoring a broken economy and reviving people's livelihoods are the most urgent tasks we must address now," adding, "If low growth continues as nowadays, the door to opportunity narrows and we fall into a vicious cycle of intensified competition and conflict." In his eight-page address, President Lee mentioned 'economy' 24 times, as well as frequent references to growth (12 times), recovery (10 times), and people's livelihoods (9 times).

President Lee declared, "Now is the time for the government to step forward so the economy can rebound," warning that "for the government to stand by and insist only on austerity in an economic crisis is irresponsible neglect and could even deny the very reason for the government's existence.” He emphasized, "They say 'economy is about timing'—and now is the timing." Regarding capital market normalization, he said, "We must restore transparency and fairness," adding, "If companies grow and develop properly in a virtuous cycle, we can usher in the KOSPI 5000 era."

While stressing growth, President Lee also said, "We must move toward a rational society that upholds order based on fairness," noting, "The process of transforming into a new society brings pain but we must clear away the chaff in order to sow seeds."

"Extra Budget Is a Primer for Economic Recovery… Insisting Only on Austerity in Crisis Is Irresponsible"

In his first policy address at the National Assembly since taking office, President Lee Jae-myung emphasized economic recovery and stability of people's livelihoods, calling for the parliament's cooperation in swiftly passing the supplementary budget bill, a starting point for exiting the crisis. He pledged, "Based solely on pragmatism, I will do my utmost to look after the people's lives and to pave new ways for economic recovery and growth." In the speech, totaling over 4,700 characters, 'economy' appeared 24 times, 'growth' 12 times, and 'recovery' 10 times.

"Fiscal Normalization through Revenue Adjustment"

President Lee packed his speech with a diagnosis of the Korean economy's crisis. He noted that "our economy, which endured even the COVID-19 pandemic, has faced a serious crisis over the past three years," and pointed out, "Amid high inflation, high interest rates, and high exchange rates, the economic growth rate has sat in the zero percent range for four straight quarters, and even posted negative growth in the first quarter."

He cited key indicators of the crisis, including declining government and private consumption, facility investment, and construction investment in the first quarter, a record-high number of discouraged young job seekers, around 1 million self-employed closing their businesses annually, and a sharp rise in household loan delinquency rates among vulnerable groups.

In this context, President Lee strongly argued for the swift passage and execution of the supplementary budget to avoid missing the 'golden time for recovery'. He reiterated, "Now is the time for the government to act so the economy can rebound," and warned that "for the government to sit idle and insist solely on austerity during this economic crisis is irresponsible neglect and a denial of its own reason for being."

He detailed the supplementary budget, including ₩11.3 trillion earmarked for boosting consumption, ₩3.9 trillion for investment stimulation, and ₩5 trillion for supporting small business owners and vulnerable groups. The consumption-boosting funds include tailored support for vulnerable groups and regions at risk of depopulation, while investment promotion includes ₩5.4 trillion in liquidity supply for the real estate project financing (PF) market, among other measures.

President Lee also presented a plan to normalize public finances by adjusting revenue to the tune of ₩10.3 trillion—a policy of reducing the initially projected revenue to match actual circumstances. He stressed, "This supplementary budget is the primer to relieve the economic crisis drought and the minimum measure for economic recovery."

"Fair Growth to Alleviate Polarization"

Beyond overcoming the immediate economic crisis, President Lee expressed his determination to seek new engines of growth, proposing 'fair growth' as a key principle. Fair growth is one of the three main strategies of his economic policy slogan, 'genuine growth', and is promoted alongside high-tech industries and energy transition.

He warned, "If low growth continues as nowadays, the door to opportunity narrows and we fall into a vicious cycle of heightened competition and conflict," and stressed, "We must open the door to fair growth, which creates new drivers of growth and shares both opportunities and results, in order to alleviate polarization and inequality and move toward a society where all can prosper together."

President Lee further stated, "To build a predictable and rational society, we must all adhere to at least a minimal consensus," adding, "We must foster a rational society that applauds just success achieved by fair effort." This reflects an intent not to lose sight of traditional democratic values—such as resolving wealth inequality—even while pursuing industry-friendly policies to nurture businesses under a pragmatic approach. He also declared, "What we need is not a country propelled by vested interests and privileges, shortcuts, or expediency, but a rational and fair society where everyone upholds order on a foundation of fairness," and again likened the painful process of social transformation to clearing the chaff before sowing seeds—underlining his reform resolve.

He also touched on diplomacy and national security, underscoring their close ties with the economy. "Through pragmatic, national-interest-oriented diplomacy, we must respond wisely to shifts in the international order, including issues of trade and supply chains," he said, adding, "Peace is sustenance, and peace is the economy itself. Peace leads to economic growth, and a virtuous cycle whereby the economy further strengthens peace is vital to ensuring the people's everyday lives remain steady."

President Lee also stated his determination to seek new growth engines through substantial investments in cutting-edge sectors like AI and semiconductors, leading an energy transition centered on renewable sources, innovating the bioindustry and manufacturing, and promoting the cultural industry.

Han Jae-young / Kang Hyun-woo, The Korea Economic Daily jyhan@hankyung.com