(Unofficial Translation)

Let me begin the 59th Cabinet Meeting. 

The preliminary third quarter GDP growth rate of 2.1 percent announced today is higher than the advance estimate of 1.9 percent released in October. This figure indicates that the country’s economy is recovering faster than expected and the economic rebound is strong as well. Achievements in epidemic prevention and control carry through into the economy. The Government’s aggressive fiscal policy and such effective economic countermeasures as the Korean New Deal serve as a driving force for the rapid economic recovery and strong economic rebound. They also enable Korea to maintain its steady top ranking in economic growth among the OECD member states this year.  

The trend toward economic rebound that started in the third quarter is vigorously continuing into the fourth quarter as well. Improved economic sentiment was the start. Both the consumer sentiment index and business survey index have significantly gone up, helping the economic sentiment indicator for November spring back to the level registered before the COVID-19 outbreak.

Increases in exports, the main driver of economic rebound, are all the more remarkable. In October, the daily average export growth rate turned back into positive territory for the first time since the pandemic began. Subsequently in November, the daily average and overall monthly export growth rates both returned to positive figures for the first time in 24 months. These accomplishments are miraculous – coming amid a global recession and contracting international trade.

In addition to the total value, the makeup of our exports is also very positive. Their rebound is being driven by our fastest growing industries, such as semiconductors and biohealth, the highly competitive IT manufacturing sector, products associated with Korea’s response to COVID-19 and promising goods needed for contact-free living. This shows that the recovery of exports will not be short-lived but continue going forward. It is enough to give us confidence that exports can serve as the driving force behind our economic growth despite difficult circumstances.

The stock market also indicates strong confidence in the recovery and growth of our economy. Korea’s benchmark KOSPI – which reflects the current performance and future value of businesses – hit an all-time high, breaking the 2,600-point mark for the first time. On top of this, its rate of increase from this year’s low is also the highest among the G20 member states, demonstrating strong resilience in the face of an unprecedented crisis. KOSPI’s total market capitalization also exceeded a record high of 1,800 trillion won. An objective indicator of stock prices has confirmed that domestic and foreign investors’ assessment of our economy’s present and future is more positive than ever.

What is particularly meaningful is the fact that individual investors have become the force to shore up the stock market. When foreign and institutional investors sold their shares amid difficult conditions and left the market, individual investors, or “ants,” played a significant role in safeguarding our stock market through the so-called “Donghak Ant Movement,” a reference to the 19th century Donghak Peasant Movement. I believe the Government’s efforts to stimulate the stock market and protect individual investors have also been of help. These include extending the ban on the short-selling of shares, reducing the securities transaction tax early on and maintaining the criteria for levying the capital gains tax on stocks. 

I ask each ministry and agency to come together so that this positive trend leads to a definite economic rebound. I anticipate that our economy will recover from the shock of COVID-19 and get back on the right track beginning in the first half of next year should this economic rebound continue through the few weeks remaining until the end of the year.

Various economic indicators show positive trends and give the green light to our economy. At this juncture, there are great concerns that the recent resurgence of COVID-19 may once again make the economy and people’s livelihoods difficult. However, we have surmounted similar crises and prevailed. Situations like this can recur at any time going forward, and there is no guarantee that circumstances will quickly improve next year. In the end, we have no option but to do everything we can to chase and catch two rabbits: epidemic prevention and control and the economy. During the remaining one month of this year, I urge all ministries and agencies to do their utmost to achieve the goal of simultaneous success in epidemic prevention and control and with economic recovery. 

Working together with the National Assembly is urgent for a quick economic recovery and strong economic rebound. The statutory deadline for passing next year’s budget is just one day away. Our budget proposal aims to turn crises into opportunities and take a greater leap forward. I hope that – given the various circumstances that have changed since the proposal was submitted – Assembly members will gather their wisdom and resolve to secure the additional funds needed for our COVID-19 vaccine supply, customized support for those suffering from COVID-19-related damage and preemptive investments to achieve the goal of carbon neutrality by 2050. I am looking forward to the 2021 budget boosting our economy and providing comfort and hope to those suffering from COVID-19.