(Unofficial Translation)

Fellow Koreans, the Honorable Speaker Park Byeong-seug and distinguished members of the National Assembly, 

I am filled with deep emotions as – with six months left in my term – I am delivering my last speech before the National Assembly. Throughout my presidency, national crises have come one after another. Since the early days of my Administration, we had to overcome a touch-and-go crisis that could have escalated into war. Japan’s unilateral export restrictions, protectionism, the reorganization of global supply chains and other rapid changes to the international trade regime had to be dealt with. In the face of the COVID-19 pandemic that began last year, we had to concentrate all of our capabilities on protecting the people’s lives and safety as well as the economy and their livelihoods.

We have yet to reach the end. Until the final day in office, we will focus intensely on surmounting the crises and do everything possible to achieve a complete return to normal life and economic recovery. 

On another front, we are facing the era of a great transformation that will fundamentally change human civilization. The COVID-19 crisis is accelerating the digital transition, and the climate crisis is threatening the survival of humanity, making carbon neutrality a global task. 

These challenges are also grave for us as the nation’s fate depends on them. The Government will boldly steer through this great transformational era, fulfilling its responsibility for and role in ushering in a new future. 

I believe in our people’s great potential. Sir Winston Churchill once said, “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” Our people have always weathered crises through the power of optimism and our positive can-do attitude. They have demonstrated to the fullest the true nature of a Republic of Korea that is resilient to crisis. Their game-changing, daring thinking has turned crises into opportunities, helping accomplish a greater leap forward.

The North Korean nuclear crisis was taken as an opportunity to turn the situation around and open the door to peace. Three rounds of inter-Korean summits and the first U.S.-North Korea summit ever were brought about, creating a breakthrough for peace. Dialogue still remains incomplete. We will work hard until the end to establish a new order to bring peace and prosperity to the Korean Peninsula through dialogue and diplomacy.

Japanese-imposed export restrictions have been transformed into an opportunity for our materials, parts and equipment industries to turn the tables to attain technological self-sufficiency. Backed by public support, the Government, large businesses and SMEs have all responded by joining forces. As a result, our dependence on Japan for 100 core items has been reduced, and import sources have been diversified for stability in supply chains. We are now advancing beyond Japan into the world on track to become a materials, parts and equipment powerhouse. 

Amid the global COVID-19 crisis, Korea’s response to the pandemic has become a global standard. Being a model country in epidemic prevention and control has served as an opportunity to elevate the Republic of Korea’s international standing. This achievement has resulted from an advanced disease-fighting strategy and healthcare system, the dedication of medical professionals and a mature sense of community.

During the global crisis, we have been able to rediscover our capabilities. Despite Korea’s late start, we have overtaken those countries that started vaccinations ahead of us thanks to our people’s active participation. As a percentage of the total population, 80 percent have received at least the first dose and over 70 percent have been fully vaccinated, reaching one of the highest inoculation rates in the world.

On the foundation of stable anti-epidemic efforts and high vaccination rates, we are now beginning a phased return to normalcy. It will be implemented in earnest from November. People’s everyday routines will be restored, and their constrained lives will regain vitality.

In particular, microbusiness owners and the self-employed who have had immense hardships due to epidemic prevention and control measures will see a gradual increase in business. In-person classes will be brought back to normal as well. Welfare facilities will be put into standard operation, and problems with caregiving services for the vulnerable with low incomes will also be resolved. We will do our best to move toward a community of healing, recovery and inclusiveness. 

Predicated on living with COVID-19, the phased recovery of our daily routines involves the process of returning to normal everyday life while stably bringing the anti-epidemic situation under control. While maintaining mask wearing and other basic epidemic prevention guidelines, we will continue the transition to sustainable epidemic control and medical response modes. 

We are now standing on the threshold of hope. Together with the people, the Government will make Korea’s response to COVID-19 complete by creating a successful model for the restoration of normal routines. 

The economy has been one of the areas causing the most concern. The Government has devoted all of its capabilities to overcoming the economic crisis. 

We have made bold responses by swiftly switching to an emergency economic rescue mode. In cooperation with the National Assembly, six supplementary budgets have already been drafted and passed. Such unprecedented expansionary fiscal spending has served as a buttress to protect the people’s lives and livelihoods, spearheading a fast and strong economic recovery. 

Consequently, we were the fastest among the major advanced countries to see our economy return to its pre-COVID-19 level. Our two-year average growth rate for last and this year is forecast to be higher than that of any other country. Throughout this year, our exports have broken record highs each month, and total trade is expected to exceed US$1 trillion this month – reaching an all-time high in record time. Consumption and investment are picking up as well. Employment, the slowest indicator to recover, was also restored to 99.8 percent of its pre-crisis level last month.

Despite recent uncertainties in the global economy, we have kept our economy stable. Our sovereign credit ratings are holding at record highs. Moreover, Foreign Exchange Stabilization Bonds have been successfully issued with the lowest spreads ever, illustrating the country’s robust external credibility.

Fellow Koreans, distinguished members of the National Assembly, 

During the economic crisis, the Government has regarded the protection of people’s lives as the overriding duty above all else. In tandem with proactive fiscal spending to broadly and intensively support the business sectors and people who are suffering, we have put forth painstaking efforts to establish social and employment safety nets for vulnerable populations. In particular, support has been concentrated on microbusiness owners and the self-employed who have had to endure tremendous difficulties as the COVID-19 pandemic drags on. Four rounds of relief payments amounting to 18.3 trillion won in total have been disbursed. Tax credits, financial and other various support measures have been taken in addition. All of this is part of the efforts to help relieve their hardships. 

Pursuant to the Act on Compensation for Commercial Losses, reimbursements for commercial losses stemming from government restrictions will commence the day after tomorrow. These legally stipulated payments – the first of their kind in the world – represent huge institutional progress. Although they are small, I hope they turn out to be encouraging and helpful. 

I agree with the sentiment that our society should share even those hardships experienced by people in businesses that have suffered but are not eligible for the support specified in the Act on Compensation. If the National Assembly comes up with ideas during the budget deliberation process, the Government will do everything possible to lend support.

Preserving jobs in this crisis situation has been the most important task. Subsidies for employment retention have been expanded to underpin corporate efforts to retain employees. Four rounds of emergency employment safety payments have been sent out to the contract-based self employed, freelancers and other vulnerable workers. Public-service job programs have also been significantly expanded.

Efforts to strengthen the employment safety net have continued as well. A universal employment insurance roadmap for everyone has been put in place. The number eligible for employment insurance has been raised. Artists and self-employed contract workers can now benefit from employment insurance for the first time. The employment support program has come into full effect in order to help workers maintain stable living conditions during times of sporadic employment. 

I believe the inclusive policies consistently pushed by my Administration have played a great role in enabling us to ride out the COVID-19 crisis. These policies have made significant contributions to protecting the vulnerable and easing disparities. 

My Administration has steadily increased welfare and labor sector funding, going from 130 trillion won at its start to 217 trillion won next year. The expansion of welfare for vulnerable populations has been a key priority. The Family Support Obligation Rules tied to receiving living allowances have been phased out and completely eliminated as of this month – 60 years after they were first enacted. 

Basic pensions and those for people with disabilities have risen to 300,000 won per month, earlier than originally scheduled. Earned income and child tax credit refunds for low-income working families have been significantly expanded.

For the first time, orphans who reach adulthood and must move out of protective facilities will receive financial assistance designed to help them gain economic independence. Support for single parent families has been expanded. Subsidy systems for farmers and fishermen to promote the public good have been adopted.

Meanwhile, a universal monthly child benefit was newly introduced and the maximum age for children to qualify has been going up. Free high school education, which was partially introduced in 2019, has been extended to all students in all grades as of this year, ushering in the era of completely free education in public elementary, middle and high schools.

Working hour reductions and minimum wage increases have been steadily implemented. As a result, the country’s average annual hours worked have fallen sharply to 1,952 from 2,052 in 2016. The percentage of low-wage workers has plummeted to 16 percent from 23.5 percent in five years.

In particular, people’s burdens from medical expenses have been lessened considerably. We have strengthened health insurance coverage. Issues related to three major costs that cannot be reimbursed – surcharges for selecting a specific doctor, expenses for upper-level hospital rooms and caregiving expenses – have been resolved, and out-of-pocket expenses have been significantly reduced.

A government-backed program for treating dementia patients has been implemented to greatly ease the burdens that families face from related medical expenses and caregiving. 

A complete economic recovery is achieved through an inclusive recovery.

Numerous people have yet to sense the warmth of this economic recovery. The Government will work up to the last moment for an inclusive recovery in which no one is marginalized.

Fellow Koreans, members of the National Assembly,

Our economy did not stop innovating even amid crises. Instead, we have turned them into opportunities for innovation to accelerate the transition to a pacesetting economy. 

As one measure, we have vigorously pushed the Korean New Deal. From the Digital New Deal and Green New Deal, it has expanded to include the Regionally Balanced New Deal and Human New Deal, with investments also increasing from a total of 160 trillion won to 220 trillion won over five years. The Korean New Deal – an initiative that we embarked on ahead of other countries – has received global attention and is now becoming a path taken by numerous nations around the world.

Our globally unmatched capacity for innovation has served as a powerful driving force behind our march toward becoming a pacesetting economy.

With their strong digital capabilities and outstanding technology, our signature information and communication technology devices are leading exports and spearheading our leap forward beyond this economic recovery.

It is all the more positive as SME exports are showing double-digit growth.

New industries are playing a pivotal role in our economic rebound and leap forward. Driven by the significant growth of system semiconductors on top of our memory chips already ranking 1st in the world, we are now vigorously moving forward toward becoming a comprehensive semiconductor powerhouse. When it comes to future cars such as electric and hydrogen-powered vehicles, we are also taking the lead in the global market. With differentiated strategies based on technological superiority, our batteries, the heart of future cars, rank No. 1 in the global market outside of China. The biohealth sector has also become one of our country’s 10 export-leading areas, serving as a next-generation growth engine. In addition, we are accelerating the establishment of a global vaccine hub and the development of home-grown vaccines.

Some of our flagship industries, which had been facing a crisis, have also made a strong resurgence with the Government’s strong support and their own innovations.

Our shipbuilding industry has completely rebounded, consistently garnering more orders than any country in the world, and we have secured dominant positions in the global high value-added and eco-friendly ship markets, demonstrating the power of K-shipbuilding.

The shipping industry has also miraculously returned to life three years after the Government started rebuilding it.

The competitiveness of high-tech industries is being enhanced rapidly as well. Korea has become the 10th country to join the Artemis Accords – a lunar exploration project. Having succeeded with the liftoff of our space launch vehicle Nuri – developed entirely with our own technology – we have become one of only seven countries that can send an object weighing over one ton into space atop its own launch vehicle. 

If we take the last remaining step of placing a satellite into a precise orbit, this will allow us to launch Korean-made satellites from our territory with our own launch vehicles. Our private space industry will use this transfer of relevant technology to leap to a new height.

Innovative business ventures and startups are serving as the main players in a pacesetting economy.

The second venture boom is spreading and dynamically restructuring our economy.

The number of unicorn companies has increased to 15 from the three that existed when my Administration started. Venture investments, which already set a new record in August, are forecast to surpass 6 trillion won at the end of the year.. 

The cultural content industry has emerged as our new growth engine. Our culture, including K-pop, dramas, movies, games and webtoons, has grabbed the world’s attention, with their exports surpassing US$10 billion for the first time last year. In addition, the size of the surplus in this sector continues to increase. As its growth spills over to K-food, K-beauty and other related industries, exports of both agricultural and food products as well as cosmetics are also hitting new records.

However, our economic prospects are not all rosy.

We are facing bigger and unprecedented challenges on a level unlike any before. The reorganization of global supply chains is in full swing and leading to a war-like situation to secure cutting-edge technologies ahead of other countries. In addition, as countries move toward the era of carbon neutrality, the global economic order and industrial map are fundamentally changing. 

It is our national duty to turn these crucial challenges into yet more opportunities. We need to seize on supply chain realignment as a chance to expand our companies’ advances into global markets. In addition, the carbon neutrality initiative should be turned into an opportunity to create new growth engines and jobs. In particular, we will realize our vision of becoming a leading hydrogen country and an energy powerhouse by fostering the hydrogen economy as our nation’s future strategic industry. It will be a key sector in the era of carbon neutrality.

With customized strategies, the Government will provide strong support for our major industries such as K-semiconductors, K-batteries, K-bio, K-hydrogen and K-shipbuilding. For their part, businesses are also cooperating more robustly than ever by forming “K-alliances” in each industry while making large-scale investments. If we respond by mustering nationwide capabilities in this way, we will be able to overcome new challenges and take the lead in global markets.

Fellow Koreans, members of the National Assembly,

The Republic of Korea today is no longer the Republic of Korea of the past. We have set an example for the world with regard to epidemic prevention and control and economic recovery, and our country has grown into the world’s 10th largest economic powerhouse and a trading power as the 6th largest exporter. We have outstripped a G7 member state in terms of per capita income for the first time in our history. Our military strength has been enhanced to such an extent that Global Firepower’s 2021 World Military Strength Ranking lists Korea as the 6th strongest military powerhouse. Diplomatic horizons, including through the New Northern and Southern policies, have expanded significantly, and our international standing has been elevated further as evidenced by the fact that we have been invited to the G7 Summit for two years in a row.  

As our culture captivates the hearts of people around the world, we can justifiably boast about Korea being a cultural powerhouse. In addition to its economic and military power, the Republic of Korea is emerging as a leading soft power powerhouse in fields as diverse as democracy, healthcare and medical services, culture and diplomacy. As the United Nations Conference on Trade and Development unanimously decided, Korea has become in every sense an advanced country in the eyes of the whole world.

This is a tremendous national achievement made by our people. It is all the more great since it has been accomplished amid a crisis.

Our people have demonstrated amazing capabilities in every crisis. They saved our country from them and created a stronger Republic of Korea. Even amid the COVID-19 crisis, our people have come together and cooperated. They have shown mature civic awareness as the principal actors in epidemic prevention and control, and all the economic stakeholders have become key players in the economic recovery and leap forward. My respect and gratitude for our great people are boundless.

Being an advanced nation is a source of great pride for us. However, our responsibility to the international community has also grown. One key task that the world must now resolve together is the climate crisis response. My Administration has joined the 2050 Carbon Neutrality initiative. In addition, we also decided to enhance our 2030 Nationally Determined Contributions; we will cut our greenhouse gas emissions by 40 percent relative to the 2018 level. Previously, we had committed to a 26.3 percent cut. Some advanced nations on the frontline of climate responses have long been working to cut their emissions since they reached their emission peaks well before we hit ours in 2018. Therefore, in comparison, our goal is very challenging since we have to reduce greenhouse gases at a much steeper rate over a short period of time. The Government will also join the Global Methane Pledge that aims to reduce global methane emissions by more than 30 percent by 2030 and cooperate with the international community to reduce greenhouse gases.

It will never be easy to meet the 2050 Carbon Neutrality challenge. The industrial structure needs to be fundamentally innovated, and dramatic transitions are needed in our energy mix.

We fully understand the voices from industry calling the goal too difficult to deal with.

However, we won’t let businesses shoulder the hardships alone. The Government will render all possible policy and financial support. Companies are also boldly coming forward on their own initiative for their survival and future competitiveness.

Now is the time for our people to act as well. A national movement to put carbon neutrality into action is needed. When small everyday practices are added up, we can move toward a carbon-neutral society. Anyone can become a key player for carbon neutrality, for instance, by making it a habit to save and recycle, using public transportation, using fewer disposable products and plastics, planting trees and using renewable energy. Let’s get started right away before it is too late. The Government will also join the efforts by supporting our people’s actions and practices.

Korea will fulfill its responsibilities as well when dealing with other global issues. While strengthening global vaccine cooperation, as planned, we will provide US$200 million to COVAX facilities to supply vaccines to developing countries.

We have also started cooperating with the efforts to provide surplus vaccines to countries that are experiencing shortages. Our ability to respond to global issues will be enhanced as we do what we can to contribute to the international community. We will take the lead further when it comes to promoting such universal values as democracy, human rights and peace.

We must also continue to make up for what we lack. 

There are, as well, many shadows behind our rapid economic growth to date. Korea has one of the lowest fertility rates in the world. The poverty rate among our seniors, our suicide rate and the fatality rate from industrial accidents are shameful self-portraits of the Republic of Korea. Real estate – the most pressing livelihood issue – remains an unfulfilled reform task. The increasingly powerful black hole-like concentration in the Seoul metropolitan area and regional imbalances also remain unsolved. Injustice, discrimination and exclusion are obstacles to social integration. These are national tasks that must be solved in order for future generations to have hope. My Administration will do all it can to make progress in dealing with the pending tasks until the end of its term and ensure that these efforts are carried over to the next administration.

I hope that, for its part, the National Assembly will pool its wisdom.

Fellow Koreans, members of the National Assembly,

For next year, the Government has drawn up an expansionary 604.4 trillion won budget for a complete recovery and the country’s future. In consideration of this year’s fiscal and supplementary budgets, we have maintained an expansionary stance.

Amid the COVID-19 crisis, expansionary fiscal spending created a virtuous cycle: It spearheaded the recovery of the economy and employment, which in turn led to an increase in tax revenue, helping improve fiscal soundness.

There is still a long way to go before a complete recovery. We should not miss the right time to transition to a pacesetting economy either. Fiscal spending will inevitably play a huge role next year as well.

Meanwhile, we cannot take fiscal soundness and sustainability lightly. 

The Government has agonized over how to achieve a sound fiscal balance while utilizing fiscal space to surmount the crisis so far and this aim has been reflected in next year’s budget proposal as well.

The amount of tax revenue this year is expected to increase further than anticipated at the time when the budget proposal was submitted to the National Assembly.

Consequently, this inaccurate tax revenue forecast is ripe for criticism, but it indicates a stronger-than-expected economic recovery, something desirable for the overall national economy.

The Government intends to utilize the additional tax revenue to further ease the people’s hardships while using some of it to repay the national debt with the expectation that this will contribute to improving our fiscal soundness as well.

Next year’s budget is designed to fully restore the daily lives and livelihoods disrupted by the COVID-19 crisis. This is an investment in our country’s future – like those for carbon neutrality, the Korean New Deal and strategic technology development. It also reflects our determination to achieve strong security and public safety as well as solve the low birth rate.

First, we will place our top priority on safeguarding the people’s health and lives from COVID-19 and intensively protecting those adversely affected. Ninety million additional doses of COVID-19 vaccines will be purchased to ensure that the total 170 million doses needed are secured. Along with the efforts to secure a sufficient number of beds to restore daily routines, we will also increase the number of hospitals specializing in infectious diseases in each region.

Most of all, the proposed budget contains measures to provide substantial compensation to microbusiness owners and the self-employed in accordance with the Act on Compensation for Commercial Losses. We will expand emergency funds for those who are outside the boundary of institutional support, tackle financial cliffs and increase assistance to microbusiness owners to enable them to make comebacks and restart their businesses. 

Second, we will achieve an inclusive recovery where everyone can feel its warmth while reducing the disparities and inequality exacerbated by the COVID-19 pandemic. Next year, the standard median income will be raised to an all-time high, thus significantly improving the level of coverage for the seven major government benefits. With the complete abolition of the mandatory Family Support Obligation Rules tied to cost-of-living subsidies, an additional 53,000 households will receive benefits. By carrying out a pilot project for injury and sickness benefits for 2.63 million people, we will take the first step toward becoming a country where those who are sick can have time to rest. Moreover, platform workers such as paid designated drivers and express courier service drivers will now be eligible for employment insurance. People of national merit will see their basic compensation increased and receive new support for living costs.

In particular, support will be strengthened for young people who are suffering from the COVID-19 pandemic. We will provide assistance in all areas such as jobs, housing and education as well as building wealth. The funds earmarked for youth employment subsidies will be expanded, and the Youth Tomorrow Savings Account and Youth Hope Installment Savings Account will be introduced to help young people accumulate wealth. To reduce the housing burden, a new monthly rent support program for young people with low incomes will be introduced. National scholarship support for college students will be significantly expanded so that half of tuition costs will be covered across the board, even for middle class individuals.

The budget proposal also focuses on narrowing regional disparities. In line with the second stage of fiscal decentralization, financial resources for local governments will be significantly expanded. Twenty-three balanced national development projects will be implemented in earnest, and the three-year plan for building residential neighborhood infrastructure will be completed. We will provide support to help Busan, Ulsan and Geyongsangnam-do’s pan-regional cooperation become a model of success so that this spreads to other regions and serves as the key to ushering in a new era of balanced national development.

Third, we will boldly invest in transitioning to a future-oriented economic structure. Next year is the first year to implement the carbon neutrality plan, and around 12 trillion won will be boldly invested as part of fiscal spending. We will support the acquisition of more than double the number of eco-friendly vehicles compared to this year to achieve the total penetration target of 500,000 units. We will further expand the supply of renewable energy and significantly increase the number of urban forests. A climate response fund, worth 2.5 trillion won, will be set up for the first time, and a fiscal budget system will also be introduced to verify whether various policies are conducive to reducing greenhouse gas emissions.

We have allocated some 33.7 trillion won to more vigorously promote the enhanced Korean New Deal 2.0. The research and development budget rose to 30 trillion won, a more than 50 percent increase compared to the amount when my Administration was inaugurated. Korea will be reborn as the world’s No. 1 R&D powerhouse in terms of R&D investment as a percentage of GDP.

Lastly, emphasis has been placed on investments that protect the people’s safety and improve their quality of life. The Government has expanded the defense budget to 55.2 trillion won. My Administration will record significant defense budget expansion with an average annual increase of 6.5 percent. The welfare of military personnel will be improved by, for instance, sharply raising their monthly pay and the amount spent on their meals. We will concentrate on investing in securing state-of-the-art military strength and in technology development. In addition to enhancing the ROK-U.S. alliance and promoting cooperation with neighboring countries, we will reinforce multilateral diplomacy and middle power diplomacy. Funding for official development assistance has been significantly increased mainly in the green, digital and healthcare fields.

More than 20 trillion won will be aggressively invested toward promoting safety with three major disaster-related goals: preventing natural catastrophes, protecting people’s lives and improving living environments. Child benefit eligibility will be extended to those under the age of eight. Infant allowances and vouchers for the purchase of baby products will be created for the first time. We will create a social environment that is friendlier to families and childrearing, for instance, by increasing the use of public daycare services further by expanding the number of national and public daycare centers. 

Next year’s budget is my Administration’s last proposal, and it is also the first budget the next Administration will use. I ask National Assembly members to discuss this proposal and cooperate beyond party lines.

Fellow Koreans, the Speaker and members of the National Assembly,

The National Assembly has pulled together considerably to help my Administration surmount crises.

Each year, the National Assembly has handled our budget proposal in a smooth manner, and it quickly passed six supplementary budget plans. A number of historic livelihood-related laws have also been enacted. I would like to express my deep gratitude to all members of the National Assembly for the countless legislative achievements.

I am always grateful and thankful to the people who – with a constant faith in the Government – have pulled together as the nation confronted difficult times. As a government dedicated to helping surmount crises, we will repay the support by doing all we can until the end of my term.

We will never forget our calling to prepare for the future until the very end. We will do everything possible to fulfill our mission without losing our initial resolve until the end of my term.

Thank you.