Thank you, Madam Chairwoman.

I would like to take this opportunity to brief you on the economic policy of the new Administration of Korea. Korea has achieved rapid economic growth thanks to successful industrialization. Behind this accomplishment, however, income polarization has grown severe. Now extreme economic inequality is hampering growth and impeding national unity.

For this reason, the Korean Government is seeking a grand shift in the economic paradigm to a people-centered economy. It is a shift in ways of thinking to promote creativity and entrepreneurship by ensuring fair opportunities for everyone and to carry out economic policies that place the people and households at the center. It embodies the G20’s goal of strong, sustainable, balanced and inclusive growth to match Korea’s needs and conditions.

The new economic policy can be summed up as: First, growth through job creation; second, a fair economy and third, innovative growth.

First is growth through job creation. It is intended to produce a virtuous cycle in which household income increased by the creation of decent jobs boosts domestic demand and economic growth, which in turn leads to more job creation. The new Korean Administration intends to take the initiative in creating public services jobs in public institutions first to emerge from jobless growth, thereby priming the pump for inducing the private sector to increase jobs.

Second is a fair economy that guarantees equal opportunities and fair competition for everyone. The Government will enhance market monitoring to root out unfair transaction practices and improve unreasonable corporate governance structures. It will promote a grand compromise among labor, management and the government for the shared progress of employees and employers. The Government will also provide assistance to help reasonable practices of labor-management cooperation take firm root in businesses.

Third is innovative growth, which revitalizes the economy on the strength of creativity and a challenging spirit. Creative minds will be nurtured through educational innovation. Investments in new technologies such as the Internet of Things, Big Data and artificial intelligence will be expanded. In addition, the Government will enhance support for startups and reform the regulatory system to ensure the growth of innovative startups and new industries.

Though the global economy has recently shown signs of recovery, risks still remain such as policy uncertainty stemming from monetary policy normalization and other political factors. I wholeheartedly welcome and support the resilience principles that have been adopted to overcome these challenges by the G20 countries under the leadership of Germany, the chair nation this year.

Instability in the international financial market limits economic policy measures and makes for uncertain outcomes. The G20 needs to come up with concrete results to strengthen the global financial safety net. Considering the fact that the rising degree of volatility in the flow of global capital can expose emerging economies to risks and the aftereffects can spread to developed countries, I propose related international rules be introduced and managed in a more flexible manner.

Korea opposes protectionism and fully supports the G20’s endeavors to strengthen the multilateral trade system centered on the World Trade Organization and to expand the order of free trade.

At the G20 Summit here in Hamburg, I hope that our joint commitment on these matters will be reaffirmed. I also hope that the G20 nations will work together for the success of the 11th WTO Ministerial Conference at the end of this year.

As was pointed out in the communiqué of the G20 Summit last year, the benefits of free trade should be more equitably distributed. The Korean Government will actively provide support to minimize potential damage to small and medium-sized companies and the agricultural sector in the process of free trade.

Thank you very much.