[Asia Economy Reporter Lee Ji-eun] President Moon Jae-in stated that the improvement in distribution indicators for four consecutive years since the government’s inauguration is "the result of the government protecting the lives of the people through expansionary fiscal policy," and pledged to continue focusing on inclusive policies until the very end.
At the 'Economic Policy Direction Report' held at the Blue House on the afternoon of the 20th, President Moon said, "Last year, when the impact of COVID-19 was the most severe, income increased across all classes, with the lower-income groups seeing greater increases, leading to a clear improvement in the three major distribution indicators: the quintile ratio, the Gini coefficient, and the relative poverty rate."
President Moon emphasized that despite the crisis, the Korean economy has advanced as a leading economy, achieving results such as a per capita national income reaching $35,000, and said, "The most positive achievement is the reduction of income polarization and the improvement of distribution amid the crisis."
President Moon said, "Since the inauguration of our government, distribution indicators have improved for four consecutive years, and this trend continues this year," adding, "If this continues, all distribution indicators will have improved throughout our government's five-year term."
He cited expansionary fiscal policy as the cause of the improvement in distribution indicators. President Moon explained, "However, such improvement in distribution has not occurred in market income," and added, "It is the effect of the inclusive policies our government has steadily pursued, such as raising the minimum wage, strengthening health insurance coverage, and expanding basic and disability pensions, as well as the result of the government’s role as a pillar protecting the lives of the people through bold expansionary fiscal policy during the crisis."
President Moon expressed, "I feel great satisfaction that the fiscal function for improving distribution has significantly increased, and I hope this fiscal function continues," and stated, "The government will devote even more effort to inclusive policies until the very end, with the belief that only an inclusive recovery can lead to a complete recovery."
President Moon said that next year’s economic policy direction embodies the determination to achieve 'complete normalization beyond the crisis,' emphasizing, "We will spare no effort for a rapid return to daily life."
He particularly identified real estate stabilization as the "greatest livelihood task," stating, "We will firmly establish the downward stabilization trend of real estate prices and accelerate housing supply." He also announced proactive preparations for supply chains, inflation, household debt, and monetary policy transitions.
Regarding the difficulties faced by small business owners, he said that all available resources will be mobilized for multifaceted support, and that recovery of domestic demand and a leap forward will be supported, focusing on industries hit directly by COVID-19. He added that policy efforts will be concentrated to ensure that new industry growth and venture vitality lead to private sector job expansion, and that employment safety nets will be strengthened.
President Moon stated, "Efforts to respond to leading countries cannot stop for a moment," and declared, "With the full-scale promotion of Korea New Deal 2.0, we will strongly push forward the transition to a leading economy and the eco-friendly, low-carbon economic transition in the carbon-neutral era, staking the nation’s fate on this."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
