(Unofficial Translation)

It is good to see everyone. The National Economic Advisory Council’s private sector members are here as we hold this briefing on the direction of next year’s economic policy – the last under my Administration.

In retrospect, my term has been punctuated by one crisis after another. We have had to constantly meet new challenges over this period. In order to break away from the times we face – when inequality is intensifying and low growth is firmly taking root – we’ve endeavored unceasingly to achieve our administrative goal: an innovative, inclusive nation that grows dynamically with everyone prospering together. Even in the face of the economic crisis caused by COVID-19, every effort has been made to surmount it by mobilizing all available national capabilities. Confronting a rapidly changing global order and the challenges of the times, all economic players have pooled their strengths, betting on the future of our economy.

While weathering trying times, numerous crises and challenges, our economy is demonstrating astounding potential that has exceeded expectations. Empowered by inclusiveness and innovation, it is being reborn as a stronger economy amid crises, transforming itself from a fast follower into a pacesetter.

More than anything else, our economy has emerged as a bona fide global economic powerhouse, writing new chapters in the history of overcoming crises and turning them into opportunities. With the fastest recovery among the world’s major advanced countries, Korea has firmly established its standing as one of the 10 largest economies. Our per capita income broke the US$30,000 barrier under my Administration, and it is expected to rise to US$35,000 this year. Exports and trade have both hit all-time highs, and foreign direct investment is also recording its largest amount ever. Moreover, employment is recovering to pre-COVID-19 levels.

The most positive achievement is the fact that income polarization has been reduced and income distribution improved. According to the recently released Survey of Household Finances and Living Conditions, incomes increased across the entire economic spectrum last year – when COVID-19 inflicted its most severe damage. Among the increasing incomes, those in the lower brackets rose higher than those above, showing marked improvements in the three key distribution indices – the income quintile ratio, the Gini coefficient and the relative poverty rate.

Improving these distribution indices in the midst of this crisis is a splendid achievement. Subsequently, income indices have been improving for four years in a row since the inauguration of my Administration. Recent results from the third-quarter Household Income and Expenditure Survey confirm that this trend is continuing this year as well. If sustained through the end of my term, all distribution indices will have improved throughout the five years of my Administration.

However, market income did not improve distribution that much. The improvements resulted in part from the inclusive policies that my Administration has steadily implemented – including raising the minimum wage, strengthening health insurance coverage and expanding the basic pension for the elderly and pensions for those with disabilities. It is also the result of the Government’s best efforts to play its role as a buttress to protect people’s lives through bold expansionary fiscal policies in times of crisis. Fiscal spending as a means to improve income distribution has significantly increased, which gives us a great sense of reward, and I hope this function will be maintained. Despite the improvement of these indices, a number of peoples are still in need. The Government will focus more on a policy of inclusion until the end in the belief that a complete recovery is possible only when an inclusive recovery is achieved.

Meanwhile, even amid the crisis, our economy is accelerating the creation of future revenue drivers and the transition to a pacesetting economy. Based on the world’s best innovation capabilities, our flagship manufacturing and new industries are jointly spearheading remarkable growth, and the second venture boom is increasing the dynamism and future competitiveness of our economy. Hallyu content is capturing the hearts of people around the world, thereby emerging as a new growth engine. Many K-industries, including K-pop, K-dramas, K-semiconductors, K-batteries, K-future cars, K-biohealth, K-shipbuilding and K-beauty, are taking the lead in the world and leaping forward.

It is very fortunate that our economy has managed to catch two rabbits in two senses: growth and distribution as well as innovation and inclusion. It is a national achievement made by the Government, the people and businesses pulling together. My Administration will do all it can to further develop what has been achieved to date and make up for any shortcomings until the end of my term.

The direction of the economic policy for 2022 contains the Government’s determination to achieve complete normalization by moving beyond the crisis. Complete economic normalization can only be accomplished within stable epidemic prevention and control efforts. We can continue the recovery trends for domestic demand and employment only if we are able to return to our daily routines by intensively but briefly strengthening epidemic prevention measures. The Government will do everything it can to quickly restore daily life. 

For microbusiness owners experiencing hardships due to toughened epidemic prevention measures, support will be expanded in various ways by mobilizing all available fiscal resources such as anti-epidemic relief funds, compensation for losses and financial assistance.

We will help bolster vitality in all fields – from exports to investment and consumption – so the momentum for rapid recovery and a leap forward will extend into the incoming administration. Most of all, full-fledged support for people’s livelihoods will begin, and the focus will be on resolving disparities and inequalities. We will concentrate on assisting business lines that have been hit the hardest by COVID-19 by reviving domestic demand and helping them make another leap forward. We will focus our policy capabilities so that the growth of new industries and the vitality of business ventures lead to increases in the number of private sector jobs. The employment safety net will be reinforced further to meet changes in employment structures and classifications.

The Government will make every effort to stabilize housing – the top priority when it comes to people’s livelihoods – to firmly establish a stable downward trend in real estate prices and further accelerate the supply of housing. All-out efforts will be made to manage internal and external economic risks and preemptively brace for factors that threaten the Korean economy, including supply chains, prices, household debt and monetary policy shifts.

Efforts to make a leap forward to become a pacesetting nation cannot be stopped even for one moment. We will vigorously implement the Korean New Deal 2.0 to earnestly push the transition to a pacesetting economy, a carbon-neutral era and an eco-friendly, low-carbon economy in the belief that the country’s fate depends on it. I believe that it is my Administration’s duty for the times.

Less than five months remain in my term. However, the crisis is not over yet, and there are many challenges to overcome. I ask you to do all you can, so we can jointly bring our efforts to a successful conclusion. 

Thank you.