(Unofficial Translation)

Let me begin the first Cabinet Meeting. 

This is the first Cabinet Meeting of the New Year, 2022. There are four months left before the end of my term. Paradoxically, this is when we have to be more vigilant than ever. The current situation also requires us to raise our state of alertness a level higher. We are at a critical juncture when we have to overcome the severe COVID-19 crisis and the era of great upheavals. I urge everyone to renew your extraordinary commitment and make us an Administration that fulfils its responsibilities to the end.

On the domestic front, the Government has to do everything possible to employ anti-epidemic measures and provide needed medical care following the spread of the Omicron variant as well as offer compensation and support to microbusiness owners. On the international front, we have to strengthen our response capabilities on pan-government levels regarding structural changes and uncertainties in the global economy. 

Last year, the Republic of Korea turned a new page in its trade history. Every record was on an epic scale: all-time high exports, trade volume reaching US$1.2 trillion, double-digit growth for all 15 key export items for the first time, increases in exports to all nine major markets for the first time in 10 years and exports surpassing US$60 billion for two consecutive months. Even amid crises, a new chapter in our history was written as the people and businesses came together while the Government provided support. We wrote that new chapter together. All ministries and agencies labored intensively. I am truly grateful not only to the businesses but also to every government ministry and agency for their hard work.

Going forward, there are still many mountains to cross. We have to respond proactively to a rapidly changing trade order and such shifts in the trade environment as protectionism, technological hegemony, carbon neutrality and the digital transformation. Thorough preparations for disruptions in logistics and supply chain risks should be put in place as well. Recent increases in raw material prices are also an immense burden.

I ask everyone to make painstaking efforts to stabilize supply chains in particular. The supply chain issue has become a structural risk factor that is perpetually lurking, not simply a problem that will pass or one that may happen by chance. With international politics and security issues now in the mix, it has taken on a complex tenor. The Government should reinforce its monitoring of products heavily dependent on imports from specific countries and increase alertness to improve mid- to long-term response capabilities, such as by expanding production bases at home and abroad, diversifying import sources and developing technologies. If these issues are expected to persist for a considerable period, not be short-lived, the institutional framework and specifically designated organization to support the currently up-and-running task force should be prepared as soon as possible.

Meanwhile, we need to continue to expand free trade agreements, including the RCEP, which takes effect next month, in order to strategically broaden our export markets. Support should be enhanced so that companies can preemptively brace for new trade norms that are linked to such issues as the environment, labor and technology, and we will have to continuously deal with trade barriers. Now is the time to boldly face new challenges and proceed toward an era of US$700 billion in total exports. While expanding our trade base more solidly, I urge you to make all-out efforts to create new growth engines until the end of my term.

There are many programs that are being implemented for the first time or providing increased support this year. I hope that they will make the people’s lives easier.

In order to ease the burden of childbirth and childrearing, vouchers for the purchase of baby products and infant allowances will be dispensed for the first time this year, and child benefit eligibility will be extended to those under the age of eight. The standard median income will be raised to an all-time high, thus significantly improving the level of coverage for the seven major benefits. Also, earned-income refunds, both eligibility and amounts, will be expanded further.  

The scope of those eligible for employment insurance will also be expanded to include delivery workers and paid designated drivers.

In particular, this year, youth policies will be implemented in earnest, so the country can share the hardships that young people have had to deal with on their own. Support for housing and education will be strengthened, for instance, by providing monthly rent support of 200,000 won per month and covering half of tuition for students from middle-income families. In addition, we will render active support to help young people accumulate wealth, for instance, through the Youth Tomorrow and Youth Hope installment savings accounts. The financial support provided to young workers who have been employed at an SME or mid-market company for two to three years will also be extended for another year. Military personnel have also seen their benefits go up even more: The monthly pay for sergeants has been raised to 670,000 won this year from 210,000 won five years ago. We kept our 2017 promise to raise it to a level equal to half of minimum-wage earnings. The Government will also provide matching funds – one-third of deposits to Soldier Preparing for Tomorrow Savings Accounts – so they can return to society with as much as 10 million won in their accounts upon discharge. 

On top of these, there are numerous newly implemented programs, such as infection control hazard pay for healthcare and medical personnel fighting COVID-19 and 50 percent of national pension contributions being covered for low-income local subscribers. I urge each ministry and agency to strengthen their efforts to promote and explain these policies. No one should miss out on benefits because they are not aware of them, and the policies also need to be implemented meticulously.