President Moon Jae-in's 2021 Budget Proposal Policy Speech
![[Full Text] President Moon: "We Will Catch Both 'Two Rabbits' of Quarantine and Economy"](https://cphoto.asiae.co.kr/listimglink/1/2020102810272469172_1603848444.jpg)
President Moon Jae-in is delivering the 2021 budget address at the National Assembly plenary session on the 28th. Photo by Yoon Dong-joo doso7@
The keywords of President Moon Jae-in's 2021 budget address on the 28th can be summarized as 'economy' and 'COVID-19 (coronavirus)'.
President Moon's speech was about 11,000 characters long, spanning 91 manuscript pages and using approximately 2,300 words. The part he emphasized most was the 'economy.' The word 'economy' was mentioned the most, appearing 43 times. When combining economy-related words, the focus of this speech becomes clearer. 'Investment' appeared 28 times, 'jobs' 18 times, and 'New Deal' 17 times. 'Employment' was mentioned 13 times, 'companies' 12 times, and 'livelihood' 6 times.
The next key keyword after the economy is 'COVID-19.' The word 'corona' appeared 25 times, and 'quarantine' 23 times. President Moon's emphasis on 'economy' and 'corona' is interpreted as a diagnosis that the current situation is an unprecedented national crisis. The word 'crisis' appeared 28 times.
Since his inauguration in 2017, President Moon has visited the National Assembly every year to deliver the budget address. This time, with the prolonged COVID-19 situation, the focus was on delivering a message of 'overcoming the crisis.'
President Moon Jae-in's 2021 Budget Submission Address to the National Assembly
Dear respected citizens,
Speaker of the National Assembly and members of the National Assembly,
At a very serious time both domestically and internationally due to COVID-19,
with extraordinary determination and a heavy heart,
I am here to present the next year's budget to the people and the National Assembly.
Just a year ago, no one could have predicted this.
The year 2020 will be recorded as a year of global upheaval.
Due to the COVID-19 pandemic,
humanity faces a grave threat to life, daily life has been completely changed,
and the global economy and international order are undergoing massive changes.
Due to a novel virus,
humanity is facing a health crisis not seen in 100 years.
Worldwide, confirmed COVID-19 cases have already exceeded 43 million,
and deaths have surpassed 1.1 million.
Even today, hundreds of thousands of confirmed cases and thousands of deaths continue to occur.
No one knows when this will end.
We are also experiencing the loss of ordinary daily life.
Movement between countries and people's interactions have been cut off,
and society is rapidly shifting to non-face-to-face interactions.
The foundation of economic activity is collapsing, and the global economy has fallen into a recession.
This is the worst economic crisis humanity has faced since the Great Depression.
A historic unprecedented complex crisis,
with simultaneous blows to the real economy, finance, domestic demand, and exports,
has brought the global economy to the brink.
Businesses have become more difficult, and employment insecurity has deepened.
The lives of vulnerable groups have become even harder.
No place in the world is an exception.
Since modern times, the world has never before faced an economic crisis caused by an infectious disease.
However, even amid this,
the Republic of Korea is proving to the world that it is a 'country strong in crisis.'
In overcoming COVID-19, we have become more united than ever,
and created hope amid the crisis.
In both quarantine and economy,
we are becoming one of the best-performing countries in the world.
This is thanks to the great people who unite and pool their strength more in times of crisis.
Being able to rediscover Korea amid a global crisis
has given our people great courage and pride.
K-quarantine has become a model for the world and a source of pride for Korea.
We adopted the three core democratic values of 'openness,' 'transparency,' and 'democracy'
as the three principles of quarantine,
and all citizens became agents of quarantine.
Rapid diagnostic testing, thorough epidemiological investigations, quick isolation and treatment,
have demonstrated the excellence of K-quarantine that no other country can follow.
This was neither a coincidence nor luck.
At the early stage of the outbreak, Korea was once the country with the second-highest number of confirmed cases worldwide.
Even after that, there were risks of resurgence,
but each time, we successfully overcame the crisis.
We overcame the resurgence risk in August and the critical period during the Chuseok holiday,
and controlled COVID-19 in an orderly manner.
While COVID-19 resurged in Europe and worldwide and emergency measures were taken,
Korea, conversely, has been able to ease quarantine measures,
making it an exceptionally well-performing country.
This was possible thanks to the dedication of quarantine authorities and medical staff.
It was also possible because citizens united in quarantine efforts despite inconveniences and economic damage.
I express my deepest respect and gratitude.
In the economy, Korea is receiving global attention for its miraculous performance.
The success of K-quarantine without border or regional lockdowns has led to economic benefits,
and the government's proactive fiscal policies,
including the Korean New Deal, have contributed to effective economic responses.
Korea is recognized as the fastest country recovering economically.
Among OECD countries,
Korea is projected to have the highest economic growth rate,
and international credit rating agencies consistently give stable outlooks,
showing high confidence in our economy.
Among the three major rating agencies?S&P, Moody's, and Fitch?
109 countries have had their sovereign credit ratings or outlooks downgraded this year.
Compared to this, Korea's performance is very fortunate.
I take this opportunity to thank the National Assembly for cooperating in overcoming the economic crisis.
This year, four supplementary budgets totaling 67 trillion won
were swiftly approved,
which greatly helped protect the economy and people's lives.
In a national crisis, cooperative governance is the driving force for overcoming the crisis.
I ask you to continue to watch over the difficult economy and people's livelihoods with one heart.
Dear citizens,
members of the National Assembly,
Now is the time to achieve definite stability in quarantine and a definite rebound in the economy.
I hope this occasion will be a pledge to achieve
the twin successes of quarantine and economy,
catching both rabbits.
The government will maintain an advanced and systematic quarantine system without gaps.
As we have done so far,
if mature civic awareness continues to make quarantine rules a part of daily life in the new normal under COVID-19,
the status of Korea as a leading quarantine country will remain unchanged.
The economy will also move toward a definite rebound.
Hope is being created.
After overcoming the recession in the first and second quarters,
the growth rate finally rebounded to positive in the third quarter.
It is regrettable that the painful COVID-19 resurgence in August prevented a bigger rebound,
but this achievement was made while enduring that blow, making it more meaningful.
We will build on the hope created in the third quarter
and continue the economic rebound trend in the fourth quarter.
Exports are recovering,
and conditions to revive consumption and domestic demand are being prepared through easing quarantine measures.
Foreign direct investment also recorded a historic high in the third quarter,
and Korea is recognized worldwide as a safe investment destination.
Corporate performance is gradually improving.
Especially, new industries and small innovative ventures
are leading economic recovery,
showing the resilience of our economy turning crisis into opportunity.
Now,
starting next year, it is time to activate full-scale economic revitalization measures
to put our economy back on a normal growth trajectory.
The government will vigorously promote the 'Korean New Deal' and accelerate efforts
to overcome the crisis and lead the future.
We will be a strong government that protects people's lives and takes responsibility for the nation's future.
We will surely repay the people who have endured many hardships
and worked as the main agents of quarantine and economy.
We will succeed in both quarantine and economy,
turn the crisis into opportunity, and lead the world.
I ask the National Assembly to join forces.
Dear citizens,
members of the National Assembly,
The role of fiscal policy has become even more important
to protect people's lives and open the nation's future.
The government has prepared next year's budget
at 555.8 trillion won,
reflecting the determination to overcome the national crisis and become a leading country.
This is an expansionary budget increased by 8.5% compared to the base budget,
but including supplementary budgets, it is a 0.2% increase,
considering medium- to long-term fiscal soundness.
While actively injecting fiscal funds,
the government will also carry out painful expenditure restructuring,
and will never neglect efforts to maintain fiscal soundness.
The 2021 budget submitted by the government
is a budget to 'leap forward as a leading country beyond the era of crisis.'
The top priority is to overcome the crisis early, save people's livelihoods,
and achieve a rapid and strong economic recovery.
Also, to make a major shift from a follower economy to a leading economy,
the government focuses on full-scale promotion of the 'Korean New Deal.'
We will increase investment in securing future growth engines and expanding employment and social safety nets,
steadily supporting innovation and inclusion.
The budget also actively reflects the will to ensure citizens' safe lives, strong national defense, and peace on the Korean Peninsula.
As a strong government protecting people's lives,
the government will further strengthen the active role of fiscal policy,
quickly overcome the crisis,
and make 2021 a year to move toward a leading country.
First, we will prioritize a rapid and strong economic recovery.
We are determined to quickly escape the economic shock caused by COVID-19,
accelerate economic recovery,
and achieve a definite economic rebound.
Jobs are the starting point.
Last year, jobs showed a clear recovery trend,
but this year, amid the COVID-19 crisis, they suffered a severe blow again.
The government has greatly expanded emergency fiscal and financial support,
directly created public jobs, and made every effort.
As a result, employment indicators have slightly improved,
but with the resurgence risk in August,
the decline in jobs expanded again.
Next year, jobs remain the biggest livelihood issue and the starting point for economic recovery.
Accordingly, next year's budget prioritizes job retention and creation.
The government will strengthen efforts to protect jobs
and devote itself to creating new jobs.
We will protect 460,000 jobs through 'employment retention subsidies,'
and create 570,000 private-sector jobs through tailored support for youth, middle-aged, and small business owners.
For vulnerable groups such as the elderly and disabled,
the government will directly provide 1.03 million jobs,
resolving employment shocks caused by COVID-19.
The role of companies is very important for creating quality jobs.
Government investment is a catalyst for private job creation.
I ask companies to join efforts to maintain and create jobs.
The government will do its best to support.
To accelerate economic recovery,
consumption must increase, and investment and exports must regain vitality.
Based on confidence in COVID-19 quarantine,
the government will actively promote policies to boost consumption.
We will expand issuance of local love gift certificates and Onnuri gift certificates to 18 trillion won,
strengthen support for neighborhood markets, and stimulate consumption.
We will spare no support to revitalize domestic tourism, which has been depressed by COVID-19,
and invigorate local economies.
We will also actively boost investment vitality.
The government will supply 72.9 trillion won in policy funds,
ensuring abundant liquidity is converted into productive investment.
The Korean New Deal Fund and finance will lead private sector investment.
Support for corporate reshoring and attracting advanced overseas industries
will be doubled compared to last year.
We will speed up investment in large-scale national balanced development projects,
and expand investment in living SOC to 11.1 trillion won.
We will make every effort to recover exports.
Despite the COVID-19 crisis,
exports are driving our economic rebound.
Exports have greatly increased not only in key items like automobiles and semiconductors,
but also in K-quarantine products led by small and medium enterprises,
promising non-face-to-face items, and cultural contents.
We will further accelerate this pace.
We will additionally supply 5.8 trillion won in trade policy funds
to support overseas plant orders and SME export financing,
and increase support to promote export market diversification.
I hope all economic actors?large and small companies, labor and management, government and private sector?
will unite to boost economic rebound.
Second, we will vigorously promote the 'Korean New Deal' for Korea's future.
In difficult times, we must look to the future.
The 'Korean New Deal' is a national transformation project to become a leading country,
a national development strategy involving 160 trillion won in total investment.
Next year, including 21.3 trillion won in national funds,
a total of 32.5 trillion won will be invested,
creating 360,000 jobs.
First, 7.9 trillion won will be invested in the 'Digital New Deal.'
Recently, Korea ranked first overall in the OECD's 'Digital Government' evaluation.
Korea's digital competitiveness, announced by IMD,
has steadily risen from 19th in the world in 2017 to 8th this year.
This is remarkable progress.
For us, who have great strengths in the digital field,
the post-COVID era will be an excellent opportunity to leap forward as a 'leading country.'
Next year,
we will focus investment on building a 'data dam' for data collection, processing, and utilization,
and fostering non-face-to-face industries such as education and healthcare.
We will expand intelligent transportation systems to 50% of national roads,
invest 1.9 trillion won in digitalizing important infrastructure such as automatic water level measurement and remote control systems for rivers and dams.
This will greatly contribute to disaster prevention and management.
We will invest 8 trillion won in the 'Green New Deal.'
The government has strongly promoted energy transition policies,
but there is still much to improve.
We will actively respond to climate change with the international community,
aiming for carbon neutrality by 2050.
We will replace coal power with renewable energy,
creating new markets and industries and jobs.
We will invest 2.4 trillion won in replacing old buildings and public rental housing with eco-friendly facilities,
and in green transformation of urban spaces and living infrastructure.
We will expand electric and hydrogen vehicle supply to 116,000 units,
invest 4.3 trillion won in building charging stations and expanding rapid chargers.
We will develop smart industrial complexes into low-carbon, green complexes,
and expand financial support for regional renewable energy projects.
The 'Korean New Deal' is a people-centered development strategy.
We will invest 5.4 trillion won in strengthening safety nets and nurturing talent,
the foundation of the Korean New Deal.
We will expand employment insurance support for special-type workers,
and invest 4.7 trillion won in expanding employment and social safety nets,
including abolishing the support obligation for livelihood benefits.
We will strengthen talent development and vocational training systems
in line with social and economic structural changes,
and steadily increase investment in people to close the digital divide.
At the same time, we will actively promote the 'Regional Balanced New Deal.'
In addition to digital, green, and safety nets,
we add 'Regional Balanced New Deal' as the basic spirit of the Korean New Deal,
dynamically transforming Korea from the regions.
Our government has vigorously promoted national balanced development projects,
community-based living SOC, innovation cities, and regulatory free zones.
However, the gap between the metropolitan area and provinces has not narrowed.
The 'Regional Balanced New Deal' will strengthen and improve the quality of national balanced development policies so far.
By placing the center of the Korean New Deal in the regions,
we will make it tangible in the lives of all citizens.
Representative projects of the Korean New Deal such as smart cities,
green smart schools, green remodeling, and smart green industrial complexes
will greatly innovate living spaces and workplaces in the post-COVID era.
If regions lead and creatively discover and promote projects,
the government will spare no support.
National balanced development has no division between ruling and opposition parties.
If the National Assembly pools wisdom on the 'Regional Balanced New Deal,'
the government promises to actively support it.
Third, we will boldly invest in future growth engines.
Over the past three and a half years,
we have accelerated innovation growth and intensified efforts to discover future growth engines.
Building on our position as the world's number one semiconductor country,
we are advancing into next-generation fields such as AI semiconductors and system semiconductors,
realizing the dream of becoming a comprehensive semiconductor powerhouse.
Future cars are also emerging as new export engines.
Despite adverse conditions due to COVID-19,
by September this year, exports of future cars increased by over 78% for electric vehicles
and over 46% for hydrogen vehicles compared to the same period last year.
Our companies lead the global market for electric vehicle batteries.
Also, the status of K-bio has risen greatly during COVID-19,
and the bio-health sector has become our new strength.
The government will further accelerate this pace.
We will invest 4 trillion won in three new industries?system semiconductors, future cars, and bio-health?
to enhance future industrial competitiveness.
We will invest 3.1 trillion won in data, networks, and AI,
the core bases of the 4th industrial revolution.
We will also invest 5.5 trillion won to upgrade the competitiveness of existing key industries such as manufacturing.
Support for core materials, parts, and equipment industries will be further expanded,
aiming to surpass Japan and expand globally.
Support will expand from 100 major items related to Japan to 338 global items,
aiming to become a strong country in materials, parts, and equipment.
We will also focus on enhancing the competitiveness of regional key manufacturing industries.
We will actively promote smart industrial complexes and large-scale remodeling of old industrial complexes,
and accelerate projects to smarten small and medium enterprises.
At the same time, we will focus on building an innovation ecosystem.
We will significantly increase support compared to this year, investing 29.6 trillion won.
We will strengthen R&D investment in advanced fields for core original technology development,
and actively nurture digital specialists.
We will concentrate innovation venture funds on new industries and venture startups,
and expand public procurement to secure initial sales channels for innovative products.
To revitalize startups and ventures,
we will further spread the achievements of regulatory sandboxes and regulatory free zones.
Fourth, we will further strengthen employment and social safety nets.
Since its launch, the government has greatly strengthened social safety nets for vulnerable groups
through increases in basic pensions, child allowances, the national responsibility system for dementia,
strengthening health insurance coverage, and expanding earned income tax credits.
During the COVID-19 crisis,
we have done our best to stabilize employment and support vulnerable groups.
We mobilized unprecedented policy measures such as emergency disaster relief funds,
employment stabilization subsidies, new hope funds for small business owners,
and expanded basic livelihood recipients.
As a result, in the second quarter,
income increased across all income quintiles,
with a higher income growth rate for lower-income groups,
improving the distribution index.
This is a valuable achievement.
However, there is still a long way to go.
We will carefully watch over each citizen's life
to ensure this is not a temporary phenomenon caused by government support.
Starting next year, we will invest 46.9 trillion won
to build stronger four social safety nets: livelihood, medical care, housing, and education.
By abolishing the support obligation for livelihood benefits,
157,000 additional households will benefit,
and basic pensions of 300,000 won will be expanded to all elderly pension recipients.
We will increase national subsidies for expanding health insurance and long-term care insurance coverage to 11 trillion won,
and supply an additional 190,000 public rental housing units to reduce housing burdens for low-income people.
We will also complete free high school education by expanding it to all grades.
We will also strengthen protection for vulnerable groups and investment in people.
For small businesses, small merchants, and self-employed people facing difficulties,
we will strengthen financial support such as loans and guarantees,
and enhance support for youth jobs and housing stability.
We will provide more generous support for farmers and fishermen,
veterans, and the disabled through expanded pension payments for elderly farmers,
introduction of fisheries public benefit direct payments,
increased veteran compensation, and expanded disability pensions.
Especially, we have allocated 20 trillion won as a key project to establish a nationwide employment safety net.
Starting January next year, the 'National Employment Support System' will provide
employment support services and a monthly job-seeking promotion allowance of 500,000 won to 400,000 people.
For 465,000 low-income artists and special-type workers,
we will newly support 80% of their employment insurance premiums.
We will also make special efforts to stabilize citizens' housing.
The government's determination to stabilize the real estate market,
protect genuine buyers, and curb speculation is firm.
We will steadily expand housing supply,
and make thorough efforts for housing welfare for newlyweds and youth.
We will early stabilize the three lease laws,
and supply high-quality medium-sized public rental apartments
to stabilize the jeonse (long-term deposit lease) market.
Finally, we have included unwavering will for citizens' safe lives,
strong national defense, and peace.
Since its launch, our government has promoted the 'Three Major Projects to Protect Citizens' Lives,'
preventing traffic accidents, industrial accident deaths, and suicides.
We have also taken comprehensive measures to protect citizens' health from fine dust,
including enacting special laws.
As a result, traffic accidents and industrial accident deaths have significantly decreased last year and this year,
and fine dust concentration has continued to improve.
We will strengthen efforts further next year.
Strengthening COVID-19 quarantine and infectious disease response systems
remains a very important task next year.
We have greatly increased the K-quarantine budget to 1.8 trillion won.
We will strengthen the 'prevention-diagnosis-treatment full-cycle quarantine system,'
establish three new infectious disease specialized hospitals,
and add 500 respiratory treatment facilities.
Since vaccine and treatment development is most important,
we will expand tailored support for each clinical stage
in COVID-19 treatment and vaccine development.
Even if treatments and vaccines are developed first in other countries and imported,
we will succeed in domestic development to accumulate experience,
secure vaccine sovereignty, and reduce supply prices.
We have also included a budget to newly assign 100 professional counselors
for the mental health management of COVID-19 patients and medical staff.
We will further firmly support the success of 'K-quarantine,' which has already become a global standard.
Strong security is the foundation of peace,
which remains the government's unchanging philosophy.
The government has a strong will for peace on the Korean Peninsula,
and has increased defense investment, the last bastion of national security,
expanding the defense budget to 52.9 trillion won.
We will reinforce advanced forces to prepare for all-round security threats,
and focus investment on developing core technologies and domestic production of parts.
To strengthen combat capabilities,
we plan to greatly increase investment in smart military development,
including scientific training based on virtual and augmented reality,
and distribution of advanced personal equipment.
At the same time, 3.8 trillion won has been allocated for improving soldiers' treatment,
including salary increases.
The past three and a half years have been a time of challenge
to eliminate the threat of war on the Korean Peninsula
and transform it into a 'Peninsula of Peace and Prosperity.'
Although there has been much progress,
dialogue has stopped again recently,
and the death of our citizens in the West Sea has caused great concern.
We will transparently disclose facts and fulfill government responsibility,
but this has also reaffirmed the urgent need for a peace regime.
Peace on the connected land, sea, and sky
is a 'path of coexistence' for both South and North.
I hope South and North will find a path of coexistence as a life and safety community
to overcome human and livestock infectious diseases, disasters, and calamities.
Peace on the Korean Peninsula is a historic mission given to all of us.
We must overcome the barriers before us one by one,
and even if it takes time, we must surely achieve peace.
Based on strong defense,
we will continuously seek dialogue for denuclearization and permanent peace on the Peninsula.
I hope South and North and the international community will overcome obstacles through dialogue and trust,
and expand peace from the Peninsula to Northeast Asia.
Dear respected citizens,
Speaker and members of the National Assembly,
Our National Assembly has demonstrated strength through a tradition of cooperation in times of crisis.
In unprecedented crises like now, 'cooperative governance' is even more urgent.
The people want ruling and opposition parties to compete fiercely,
but cooperate across parties to overcome the national crisis.
When responding to the people's demands for 'livelihood' and 'reform,'
the achievements of 'cooperative governance' will shine even more.
Please cooperate in passing the three fair economy laws:
the Commercial Act, the Fair Trade Act, and the Financial Group Supervision Act,
and also bring to fruition legislative reforms of power institutions,
such as the Police Act and the National Intelligence Service Act.
Please end the delay in launching the Corruption Investigation Office for High-ranking Officials,
which embodies the people's desire for investigation without sanctuary and reform of power institutions.
Please promptly conclude the many pending livelihood bills,
including the Infectious Disease Control and Prevention Act for overcoming COVID-19,
the Distribution Industry Development Act, the Small Business Protection Act, and the Employment Insurance Act,
and pass next year's budget within the legal deadline,
showing the true face of a 'livelihood National Assembly.'
Especially, I ask the National Assembly to play a role for socially vulnerable groups.
The socio-economic crisis caused by infectious diseases is not equal for everyone.
Disasters first approach the vulnerable and are harsher,
but our society lacks sufficient safety nets for those in difficulty.
I ask the National Assembly to join efforts to prepare sustainable measures
for those not protected institutionally.
I believe our efforts toward a 'country where everyone prospers together'
will be realized starting from the National Assembly, the people's hall.
'A country strong in crisis, the Republic of Korea'
is a country that stands in solidarity and cooperation.
Let us join hands, overcome the national crisis,
and move forward as a leading Korea in the world.
Thank you.
Speaker of the National Assembly and members of the National Assembly,
At a very serious time both domestically and internationally due to COVID-19,
with extraordinary determination and a heavy heart,
I am here to present the next year's budget to the people and the National Assembly.
Just a year ago, no one could have predicted this.
The year 2020 will be recorded as a year of global upheaval.
Due to the COVID-19 pandemic,
humanity faces a grave threat to life, daily life has been completely changed,
and the global economy and international order are undergoing massive changes.
Due to a novel virus,
humanity is facing a health crisis not seen in 100 years.
Worldwide, confirmed COVID-19 cases have already exceeded 43 million,
and deaths have surpassed 1.1 million.
Even today, hundreds of thousands of confirmed cases and thousands of deaths continue to occur.
No one knows when this will end.
We are also experiencing the loss of ordinary daily life.
Movement between countries and people's interactions have been cut off,
and society is rapidly shifting to non-face-to-face interactions.
The foundation of economic activity is collapsing, and the global economy has fallen into a recession.
This is the worst economic crisis humanity has faced since the Great Depression.
A historic unprecedented complex crisis,
with simultaneous blows to the real economy, finance, domestic demand, and exports,
has brought the global economy to the brink.
Businesses have become more difficult, and employment insecurity has deepened.
The lives of vulnerable groups have become even harder.
No place in the world is an exception.
Since modern times, the world has never before faced an economic crisis caused by an infectious disease.
However, even amid this,
the Republic of Korea is proving to the world that it is a 'country strong in crisis.'
In overcoming COVID-19, we have become more united than ever,
and created hope amid the crisis.
In both quarantine and economy,
we are becoming one of the best-performing countries in the world.
This is thanks to the great people who unite and pool their strength more in times of crisis.
Being able to rediscover Korea amid a global crisis
has given our people great courage and pride.
K-quarantine has become a model for the world and a source of pride for Korea.
We adopted the three core democratic values of 'openness,' 'transparency,' and 'democracy'
as the three principles of quarantine,
and all citizens became agents of quarantine.
Rapid diagnostic testing, thorough epidemiological investigations, quick isolation and treatment,
have demonstrated the excellence of K-quarantine that no other country can follow.
This was neither a coincidence nor luck.
At the early stage of the outbreak, Korea was once the country with the second-highest number of confirmed cases worldwide.
Even after that, there were risks of resurgence,
but each time, we successfully overcame the crisis.
We overcame the resurgence risk in August and the critical period during the Chuseok holiday,
and controlled COVID-19 in an orderly manner.
While COVID-19 resurged in Europe and worldwide and emergency measures were taken,
Korea, conversely, has been able to ease quarantine measures,
making it an exceptionally well-performing country.
This was possible thanks to the dedication of quarantine authorities and medical staff.
It was also possible because citizens united in quarantine efforts despite inconveniences and economic damage.
I express my deepest respect and gratitude.
In the economy, Korea is receiving global attention for its miraculous performance.
The success of K-quarantine without border or regional lockdowns has led to economic benefits,
and the government's proactive fiscal policies,
including the Korean New Deal, have contributed to effective economic responses.
Korea is recognized as the fastest country recovering economically.
Among OECD countries,
Korea is projected to have the highest economic growth rate,
and international credit rating agencies consistently give stable outlooks,
showing high confidence in our economy.
Among the three major rating agencies?S&P, Moody's, and Fitch?
109 countries have had their sovereign credit ratings or outlooks downgraded this year.
Compared to this, Korea's performance is very fortunate.
I take this opportunity to thank the National Assembly for cooperating in overcoming the economic crisis.
This year, four supplementary budgets totaling 67 trillion won
were swiftly approved,
which greatly helped protect the economy and people's lives.
In a national crisis, cooperative governance is the driving force for overcoming the crisis.
I ask you to continue to watch over the difficult economy and people's livelihoods with one heart.
Dear citizens,
members of the National Assembly,
Now is the time to achieve definite stability in quarantine and a definite rebound in the economy.
I hope this occasion will be a pledge to achieve
the twin successes of quarantine and economy,
catching both rabbits.
The government will maintain an advanced and systematic quarantine system without gaps.
As we have done so far,
if mature civic awareness continues to make quarantine rules a part of daily life in the new normal under COVID-19,
the status of Korea as a leading quarantine country will remain unchanged.
The economy will also move toward a definite rebound.
Hope is being created.
After overcoming the recession in the first and second quarters,
the growth rate finally rebounded to positive in the third quarter.
It is regrettable that the painful COVID-19 resurgence in August prevented a bigger rebound,
but this achievement was made while enduring that blow, making it more meaningful.
We will build on the hope created in the third quarter
and continue the economic rebound trend in the fourth quarter.
Exports are recovering,
and conditions to revive consumption and domestic demand are being prepared through easing quarantine measures.
Foreign direct investment also recorded a historic high in the third quarter,
and Korea is recognized worldwide as a safe investment destination.
Corporate performance is gradually improving.
Especially, new industries and small innovative ventures
are leading economic recovery,
showing the resilience of our economy turning crisis into opportunity.
Now,
starting next year, it is time to activate full-scale economic revitalization measures
to put our economy back on a normal growth trajectory.
The government will vigorously promote the 'Korean New Deal' and accelerate efforts
to overcome the crisis and lead the future.
We will be a strong government that protects people's lives and takes responsibility for the nation's future.
We will surely repay the people who have endured many hardships
and worked as the main agents of quarantine and economy.
We will succeed in both quarantine and economy,
turn the crisis into opportunity, and lead the world.
I ask the National Assembly to join forces.
Dear citizens,
members of the National Assembly,
The role of fiscal policy has become even more important
to protect people's lives and open the nation's future.
The government has prepared next year's budget
at 555.8 trillion won,
reflecting the determination to overcome the national crisis and become a leading country.
This is an expansionary budget increased by 8.5% compared to the base budget,
but including supplementary budgets, it is a 0.2% increase,
considering medium- to long-term fiscal soundness.
While actively injecting fiscal funds,
the government will also carry out painful expenditure restructuring,
and will never neglect efforts to maintain fiscal soundness.
The 2021 budget submitted by the government
is a budget to 'leap forward as a leading country beyond the era of crisis.'
The top priority is to overcome the crisis early, save people's livelihoods,
and achieve a rapid and strong economic recovery.
Also, to make a major shift from a follower economy to a leading economy,
the government focuses on full-scale promotion of the 'Korean New Deal.'
We will increase investment in securing future growth engines and expanding employment and social safety nets,
steadily supporting innovation and inclusion.
The budget also actively reflects the will to ensure citizens' safe lives, strong national defense, and peace on the Korean Peninsula.
As a strong government protecting people's lives,
the government will further strengthen the active role of fiscal policy,
quickly overcome the crisis,
and make 2021 a year to move toward a leading country.
First, we will prioritize a rapid and strong economic recovery.
We are determined to quickly escape the economic shock caused by COVID-19,
accelerate economic recovery,
and achieve a definite economic rebound.
Jobs are the starting point.
Last year, jobs showed a clear recovery trend,
but this year, amid the COVID-19 crisis, they suffered a severe blow again.
The government has greatly expanded emergency fiscal and financial support,
directly created public jobs, and made every effort.
As a result, employment indicators have slightly improved,
but with the resurgence risk in August,
the decline in jobs expanded again.
Next year, jobs remain the biggest livelihood issue and the starting point for economic recovery.
Accordingly, next year's budget prioritizes job retention and creation.
The government will strengthen efforts to protect jobs
and devote itself to creating new jobs.
We will protect 460,000 jobs through 'employment retention subsidies,'
and create 570,000 private-sector jobs through tailored support for youth, middle-aged, and small business owners.
For vulnerable groups such as the elderly and disabled,
the government will directly provide 1.03 million jobs,
resolving employment shocks caused by COVID-19.
The role of companies is very important for creating quality jobs.
Government investment is a catalyst for private job creation.
I ask companies to join efforts to maintain and create jobs.
The government will do its best to support.
To accelerate economic recovery,
consumption must increase, and investment and exports must regain vitality.
Based on confidence in COVID-19 quarantine,
the government will actively promote policies to boost consumption.
We will expand issuance of local love gift certificates and Onnuri gift certificates to 18 trillion won,
strengthen support for neighborhood markets, and stimulate consumption.
We will spare no support to revitalize domestic tourism, which has been depressed by COVID-19,
and invigorate local economies.
We will also actively boost investment vitality.
The government will supply 72.9 trillion won in policy funds,
ensuring abundant liquidity is converted into productive investment.
The Korean New Deal Fund and finance will lead private sector investment.
Support for corporate reshoring and attracting advanced overseas industries
will be doubled compared to last year.
We will speed up investment in large-scale national balanced development projects,
and expand investment in living SOC to 11.1 trillion won.
We will make every effort to recover exports.
Despite the COVID-19 crisis,
exports are driving our economic rebound.
Exports have greatly increased not only in key items like automobiles and semiconductors,
but also in K-quarantine products led by small and medium enterprises,
promising non-face-to-face items, and cultural contents.
We will further accelerate this pace.
We will additionally supply 5.8 trillion won in trade policy funds
to support overseas plant orders and SME export financing,
and increase support to promote export market diversification.
I hope all economic actors?large and small companies, labor and management, government and private sector?
will unite to boost economic rebound.
Second, we will vigorously promote the 'Korean New Deal' for Korea's future.
In difficult times, we must look to the future.
The 'Korean New Deal' is a national transformation project to become a leading country,
a national development strategy involving 160 trillion won in total investment.
Next year, including 21.3 trillion won in national funds,
a total of 32.5 trillion won will be invested,
creating 360,000 jobs.
First, 7.9 trillion won will be invested in the 'Digital New Deal.'
Recently, Korea ranked first overall in the OECD's 'Digital Government' evaluation.
Korea's digital competitiveness, announced by IMD,
has steadily risen from 19th in the world in 2017 to 8th this year.
This is remarkable progress.
For us, who have great strengths in the digital field,
the post-COVID era will be an excellent opportunity to leap forward as a 'leading country.'
Next year,
we will focus investment on building a 'data dam' for data collection, processing, and utilization,
and fostering non-face-to-face industries such as education and healthcare.
We will expand intelligent transportation systems to 50% of national roads,
invest 1.9 trillion won in digitalizing important infrastructure such as automatic water level measurement and remote control systems for rivers and dams.
This will greatly contribute to disaster prevention and management.
We will invest 8 trillion won in the 'Green New Deal.'
The government has strongly promoted energy transition policies,
but there is still much to improve.
We will actively respond to climate change with the international community,
aiming for carbon neutrality by 2050.
We will replace coal power with renewable energy,
creating new markets and industries and jobs.
We will invest 2.4 trillion won in replacing old buildings and public rental housing with eco-friendly facilities,
and in green transformation of urban spaces and living infrastructure.
We will expand electric and hydrogen vehicle supply to 116,000 units,
invest 4.3 trillion won in building charging stations and expanding rapid chargers.
We will develop smart industrial complexes into low-carbon, green complexes,
and expand financial support for regional renewable energy projects.
The 'Korean New Deal' is a people-centered development strategy.
We will invest 5.4 trillion won in strengthening safety nets and nurturing talent,
the foundation of the Korean New Deal.
We will expand employment insurance support for special-type workers,
and invest 4.7 trillion won in expanding employment and social safety nets,
including abolishing the support obligation for livelihood benefits.
We will strengthen talent development and vocational training systems
in line with social and economic structural changes,
and steadily increase investment in people to close the digital divide.
At the same time, we will actively promote the 'Regional Balanced New Deal.'
In addition to digital, green, and safety nets,
we add 'Regional Balanced New Deal' as the basic spirit of the Korean New Deal,
dynamically transforming Korea from the regions.
Our government has vigorously promoted national balanced development projects,
community-based living SOC, innovation cities, and regulatory free zones.
However, the gap between the metropolitan area and provinces has not narrowed.
The 'Regional Balanced New Deal' will strengthen and improve the quality of national balanced development policies so far.
By placing the center of the Korean New Deal in the regions,
we will make it tangible in the lives of all citizens.
Representative projects of the Korean New Deal such as smart cities,
green smart schools, green remodeling, and smart green industrial complexes
will greatly innovate living spaces and workplaces in the post-COVID era.
If regions lead and creatively discover and promote projects,
the government will spare no support.
National balanced development has no division between ruling and opposition parties.
If the National Assembly pools wisdom on the 'Regional Balanced New Deal,'
the government promises to actively support it.
Third, we will boldly invest in future growth engines.
Over the past three and a half years,
we have accelerated innovation growth and intensified efforts to discover future growth engines.
Building on our position as the world's number one semiconductor country,
we are advancing into next-generation fields such as AI semiconductors and system semiconductors,
realizing the dream of becoming a comprehensive semiconductor powerhouse.
Future cars are also emerging as new export engines.
Despite adverse conditions due to COVID-19,
by September this year, exports of future cars increased by over 78% for electric vehicles
and over 46% for hydrogen vehicles compared to the same period last year.
Our companies lead the global market for electric vehicle batteries.
Also, the status of K-bio has risen greatly during COVID-19,
and the bio-health sector has become our new strength.
The government will further accelerate this pace.
We will invest 4 trillion won in three new industries?system semiconductors, future cars, and bio-health?
to enhance future industrial competitiveness.
We will invest 3.1 trillion won in data, networks, and AI,
the core bases of the 4th industrial revolution.
We will also invest 5.5 trillion won to upgrade the competitiveness of existing key industries such as manufacturing.
Support for core materials, parts, and equipment industries will be further expanded,
aiming to surpass Japan and expand globally.
Support will expand from 100 major items related to Japan to 338 global items,
aiming to become a strong country in materials, parts, and equipment.
We will also focus on enhancing the competitiveness of regional key manufacturing industries.
We will actively promote smart industrial complexes and large-scale remodeling of old industrial complexes,
and accelerate projects to smarten small and medium enterprises.
At the same time, we will focus on building an innovation ecosystem.
We will significantly increase support compared to this year, investing 29.6 trillion won.
We will strengthen R&D investment in advanced fields for core original technology development,
and actively nurture digital specialists.
We will concentrate innovation venture funds on new industries and venture startups,
and expand public procurement to secure initial sales channels for innovative products.
To revitalize startups and ventures,
we will further spread the achievements of regulatory sandboxes and regulatory free zones.
Fourth, we will further strengthen employment and social safety nets.
Since its launch, the government has greatly strengthened social safety nets for vulnerable groups
through increases in basic pensions, child allowances, the national responsibility system for dementia,
strengthening health insurance coverage, and expanding earned income tax credits.
During the COVID-19 crisis,
we have done our best to stabilize employment and support vulnerable groups.
We mobilized unprecedented policy measures such as emergency disaster relief funds,
employment stabilization subsidies, new hope funds for small business owners,
and expanded basic livelihood recipients.
As a result, in the second quarter,
income increased across all income quintiles,
with a higher income growth rate for lower-income groups,
improving the distribution index.
This is a valuable achievement.
However, there is still a long way to go.
We will carefully watch over each citizen's life
to ensure this is not a temporary phenomenon caused by government support.
Starting next year, we will invest 46.9 trillion won
to build stronger four social safety nets: livelihood, medical care, housing, and education.
By abolishing the support obligation for livelihood benefits,
157,000 additional households will benefit,
and basic pensions of 300,000 won will be expanded to all elderly pension recipients.
We will increase national subsidies for expanding health insurance and long-term care insurance coverage to 11 trillion won,
and supply an additional 190,000 public rental housing units to reduce housing burdens for low-income people.
We will also complete free high school education by expanding it to all grades.
We will also strengthen protection for vulnerable groups and investment in people.
For small businesses, small merchants, and self-employed people facing difficulties,
we will strengthen financial support such as loans and guarantees,
and enhance support for youth jobs and housing stability.
We will provide more generous support for farmers and fishermen,
veterans, and the disabled through expanded pension payments for elderly farmers,
introduction of fisheries public benefit direct payments,
increased veteran compensation, and expanded disability pensions.
Especially, we have allocated 20 trillion won as a key project to establish a nationwide employment safety net.
Starting January next year, the 'National Employment Support System' will provide
employment support services and a monthly job-seeking promotion allowance of 500,000 won to 400,000 people.
For 465,000 low-income artists and special-type workers,
we will newly support 80% of their employment insurance premiums.
We will also make special efforts to stabilize citizens' housing.
The government's determination to stabilize the real estate market,
protect genuine buyers, and curb speculation is firm.
We will steadily expand housing supply,
and make thorough efforts for housing welfare for newlyweds and youth.
We will early stabilize the three lease laws,
and supply high-quality medium-sized public rental apartments
to stabilize the jeonse (long-term deposit lease) market.
Finally, we have included unwavering will for citizens' safe lives,
strong national defense, and peace.
Since its launch, our government has promoted the 'Three Major Projects to Protect Citizens' Lives,'
preventing traffic accidents, industrial accident deaths, and suicides.
We have also taken comprehensive measures to protect citizens' health from fine dust,
including enacting special laws.
As a result, traffic accidents and industrial accident deaths have significantly decreased last year and this year,
and fine dust concentration has continued to improve.
We will strengthen efforts further next year.
Strengthening COVID-19 quarantine and infectious disease response systems
remains a very important task next year.
We have greatly increased the K-quarantine budget to 1.8 trillion won.
We will strengthen the 'prevention-diagnosis-treatment full-cycle quarantine system,'
establish three new infectious disease specialized hospitals,
and add 500 respiratory treatment facilities.
Since vaccine and treatment development is most important,
we will expand tailored support for each clinical stage
in COVID-19 treatment and vaccine development.
Even if treatments and vaccines are developed first in other countries and imported,
we will succeed in domestic development to accumulate experience,
secure vaccine sovereignty, and reduce supply prices.
We have also included a budget to newly assign 100 professional counselors
for the mental health management of COVID-19 patients and medical staff.
We will further firmly support the success of 'K-quarantine,' which has already become a global standard.
Strong security is the foundation of peace,
which remains the government's unchanging philosophy.
The government has a strong will for peace on the Korean Peninsula,
and has increased defense investment, the last bastion of national security,
expanding the defense budget to 52.9 trillion won.
We will reinforce advanced forces to prepare for all-round security threats,
and focus investment on developing core technologies and domestic production of parts.
To strengthen combat capabilities,
we plan to greatly increase investment in smart military development,
including scientific training based on virtual and augmented reality,
and distribution of advanced personal equipment.
At the same time, 3.8 trillion won has been allocated for improving soldiers' treatment,
including salary increases.
The past three and a half years have been a time of challenge
to eliminate the threat of war on the Korean Peninsula
and transform it into a 'Peninsula of Peace and Prosperity.'
Although there has been much progress,
dialogue has stopped again recently,
and the death of our citizens in the West Sea has caused great concern.
We will transparently disclose facts and fulfill government responsibility,
but this has also reaffirmed the urgent need for a peace regime.
Peace on the connected land, sea, and sky
is a 'path of coexistence' for both South and North.
I hope South and North will find a path of coexistence as a life and safety community
to overcome human and livestock infectious diseases, disasters, and calamities.
Peace on the Korean Peninsula is a historic mission given to all of us.
We must overcome the barriers before us one by one,
and even if it takes time, we must surely achieve peace.
Based on strong defense,
we will continuously seek dialogue for denuclearization and permanent peace on the Peninsula.
I hope South and North and the international community will overcome obstacles through dialogue and trust,
and expand peace from the Peninsula to Northeast Asia.
Dear respected citizens,
Speaker and members of the National Assembly,
Our National Assembly has demonstrated strength through a tradition of cooperation in times of crisis.
In unprecedented crises like now, 'cooperative governance' is even more urgent.
The people want ruling and opposition parties to compete fiercely,
but cooperate across parties to overcome the national crisis.
When responding to the people's demands for 'livelihood' and 'reform,'
the achievements of 'cooperative governance' will shine even more.
Please cooperate in passing the three fair economy laws:
the Commercial Act, the Fair Trade Act, and the Financial Group Supervision Act,
and also bring to fruition legislative reforms of power institutions,
such as the Police Act and the National Intelligence Service Act.
Please end the delay in launching the Corruption Investigation Office for High-ranking Officials,
which embodies the people's desire for investigation without sanctuary and reform of power institutions.
Please promptly conclude the many pending livelihood bills,
including the Infectious Disease Control and Prevention Act for overcoming COVID-19,
the Distribution Industry Development Act, the Small Business Protection Act, and the Employment Insurance Act,
and pass next year's budget within the legal deadline,
showing the true face of a 'livelihood National Assembly.'
Especially, I ask the National Assembly to play a role for socially vulnerable groups.
The socio-economic crisis caused by infectious diseases is not equal for everyone.
Disasters first approach the vulnerable and are harsher,
but our society lacks sufficient safety nets for those in difficulty.
I ask the National Assembly to join efforts to prepare sustainable measures
for those not protected institutionally.
I believe our efforts toward a 'country where everyone prospers together'
will be realized starting from the National Assembly, the people's hall.
'A country strong in crisis, the Republic of Korea'
is a country that stands in solidarity and cooperation.
Let us join hands, overcome the national crisis,
and move forward as a leading Korea in the world.
Thank you.
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