Yoon, who revised the manuscript until morning... Emphasizing sound fiscal policy with a 'humble attitude' and asking to "join forces" (Comprehensive)

President Yoon's 2024 Budget Address Emphasizes 'Sound Fiscal Policy' and Investment for the Future
Mentions Improvement in Macroeconomic Indicators but Expresses Concern Over Public Hardships... "Doing Our Best to Stabilize Prices"
"Not Cutting Spending but Using Taxes Efficiently Without Waste... Investment to Protect the Vulnerable"
Reiterates Three Reforms and Announces Practical Outcomes of Overseas Visits... "Bipartisan Cooperation, Please Join Forces"

President Yoon Suk-yeol visited the National Assembly on the 31st to deliver the government’s budget address for the next year, emphasizing a 'humble attitude' and focusing on 'sound fiscal management.' From drafting the speech himself to making repeated revisions until the morning of the day, the address reflected the Yoon administration’s policy direction and philosophy as it enters its second year in power. President Yoon stressed, "All fiscal projects have been reviewed from a zero base, and the resources secured will be further invested in strengthening the essential functions of the state such as national defense, rule of law, education, and health, protecting the vulnerable, and securing future growth engines."

In his 2024 budget address at the National Assembly that morning, President Yoon explained the rationale behind next year’s budget by stating, "Sound fiscal management is crucial not only for domestic price stability but also for maintaining national credibility externally, and to avoid passing on unbearable debt to future generations."

President Yoon prepared a total of 21 pages and 7,492 characters in the budget address, structured around four parts: ▲domestic and international economic conditions ▲sound fiscal management principles ▲domestic economic changes according to government policy direction ▲key national agenda items. Through this, he repeatedly indicated that the Yoon administration’s policy direction is the right path for sound national fiscal management.

President Yoon Suk-yeol is delivering the policy speech on the government's budget proposal for the next year at the National Assembly on the morning of the 31st.
[Photo by Yonhap News]

First, evaluating that "the global economy is significantly contracting amid sustained high interest rates and high inflation internationally," President Yoon analyzed the domestic economic situation by saying, "Although previously sluggish macroeconomic indicators are gradually improving, difficulties in people’s livelihoods persist." He expressed his determination to prioritize price and livelihood stability above all policies and respond with full force, as the prices felt by the public remain high and the burden of living expenses is increasing due to high interest rates.

President Yoon continued, "Over the past year and a half, the government has implemented economic policies with a focus on market-centered economic restructuring and fiscal sustainability," and explained, "We have strived to secure a super-gap in the semiconductor and battery sectors through the creation of the world’s largest system semiconductor cluster and financial and tax support, and I also thank the National Assembly for its interest and cooperation shown during this process."

Regarding the government’s fiscal management principle for next year, 'sound fiscal management,' he said, "It is not simply about cutting expenditures but about using taxpayers’ money efficiently and appropriately without waste," and previewed that the resources secured through this will be concentrated on strengthening the essential functions of the state such as national defense, rule of law, education, and health, as well as protecting the vulnerable.

He also emphasized that the goal of sound fiscal management includes 'welfare policies.' President Yoon stated, "We will prioritize welfare policies on protecting the vulnerable and strive to ensure that the state’s support reaches those in need without omission," adding, "I believe this is for our future." He then detailed future support measures such as ▲providing one-on-one dedicated services for people with developmental disabilities ▲raising the allowance for youth preparing for independence by 100,000 won and fully supporting basic and near-poverty households ▲offering low-interest loans for small business owners and subsidies up to 5 million won for purchasing heating and cooling equipment.

President Yoon Suk-yeol is leaving after delivering the policy speech at the National Assembly plenary session on the 31st.
[Photo by Yonhap News]

In this budget address, President Yoon used the word 'economy' 23 times, the most frequent term. While last year’s address most frequently mentioned 'support' (32 times) for socially vulnerable groups, this year’s emphasis on the worsening economic situation compared to last year is interpreted as an intention to enforce the government’s sound fiscal management policy.

He repeatedly emphasized sound fiscal management and mentioned, "We will focus budget allocation on creating quality jobs and securing growth engines." President Yoon announced, "We will strengthen the capital of export finance institutions to support orders in the nuclear power, defense, and plant sectors and expand export finance supply," and "We will invest 4.4 trillion won in AI (artificial intelligence), bio, cybersecurity, and building a digital platform government, and increase public stockpiling of critical minerals to prepare for supply chain instability."

Regarding the reduction of the R&D (research and development) budget, he revealed the government’s budget adjustment background by saying, "Although the budget quantitatively increased significantly from about 20 trillion won to 30 trillion won over three years starting in 2019, there were many calls for qualitative improvement and expenditure restructuring to create future growth engines." President Yoon conveyed the policy shift that the adjusted budget will focus on supporting advanced AI digital technology, bio, quantum, space, and next-generation nuclear power.

He also reinforced the necessity of the Yoon administration’s three major reforms (pension, labor, education). President Yoon said, "The government has been fully committed to the three major reforms for the future of the Republic of Korea and future generations," and regarding the recently controversial government pension reform proposal, he expressed confidence, "We have accumulated scientific evidence through over 80 meetings with the country’s top experts, listened to public opinion through 24 in-depth interviews by demographic groups, and conducted thorough opinion polls. The vast data prepared will be valuable for structural reforms of the pension system, including the fundamental reform of the National Pension."

Referring to the recent decision by the two major labor unions to disclose their accounting, he described it as a result of the government’s principle, stating, "While legal labor movements are fully guaranteed, illegal acts are dealt with according to law and principles regardless of labor or management." He then urged, "I ask both labor and management to join in labor reforms for the future of Korea and its youth."

He also highlighted tangible economic benefits from trilateral summits among Korea, the U.S., and Japan, as well as bilateral summits. Regarding relations with the U.S., he said, "This year marks the 70th anniversary of the Korea-U.S. alliance, and the government has established a global comprehensive strategic alliance covering security, economy, advanced technology, information, and culture," adding, "The Korea-U.S. economic security cooperation mechanism, which operates closely amid the global supply chain crisis, will further strengthen our crisis management capabilities." On improving diplomacy with Japan, he noted, "Economic cooperation and business have begun to revive. Japan has lifted export restrictions on semiconductor materials, the Korea-Japan whitelist has been restored, and currency swaps have resumed," expressing expectations for further economic cooperation between the two countries. He also mentioned that during his one and a half years in office, he held 142 summits with leaders from 93 countries, adding, "I have placed diplomacy at the center of the economy and have gone anywhere in the world where our people and companies are active."

He also called for cooperation between the government and ruling and opposition parties. President Yoon said, "I once again ask for the National Assembly’s active interest and cooperation so that the budget prepared by the government can be executed without delay to ease the burden on people’s livelihoods," and added, "The global economic instability and security threats we face now require national and bipartisan cooperation. I ask you to join forces to overcome the complex crises at hand."

President Yoon Suk-yeol is shaking hands with Lee Jae-myung, leader of the Democratic Party of Korea, as he exits after delivering the policy speech at the National Assembly plenary session on the 31st.
[Photo by Yonhap News]