[2024 City Policy Speech] Yoon Emphasizes Budget for Future Generations... Confident in 3 Major Reforms and Benefits of Overseas Visits

President Yoon's 2024 Budget Address... Emphasizing 'Sound Fiscal Policy' and Investment for the Future
"Not Cutting Spending but Using Taxpayer Money Efficiently"... Highlighting Practical Benefits of Government Policy

President Yoon Suk-yeol visited the National Assembly on the 31st and emphasized, "All fiscal projects will be reviewed from a zero base, and the secured funds will be further invested in strengthening the essential functions of the state such as national defense, rule of law, education, health, protecting the vulnerable, and securing future growth engines." He particularly explained the background of next year's budget by stating, "Sound fiscal management is not only crucial domestically for price stability and externally for maintaining national credibility, but also to avoid passing on unbearable debt to future generations."

On the same day, President Yoon prepared a 21-page, 7,492-character policy speech for the 2024 budget at the National Assembly, covering four parts: ▲domestic and international economic conditions ▲sound fiscal policy ▲domestic economic changes according to national policy direction ▲key national tasks. Through this, he repeatedly indicated that the Yoon administration’s national policy direction is the right path for sound fiscal management.

President Yoon Suk-yeol is greeting members of the People Power Party as he exits after delivering the policy speech at the National Assembly plenary session on the 31st.
[Photo by Yonhap News]

Emphasizing sound fiscal management, he also mentioned, "We will focus budget allocation on creating quality jobs and securing growth engines." President Yoon stated, "To support orders in the nuclear power, defense, and plant sectors, we will reinforce the capital of export finance institutions to expand export finance supply," and added, "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 in 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 criticisms that qualitative improvement and expenditure restructuring are urgently needed to create future growth engines." President Yoon conveyed the policy shift toward 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, stating, "We 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 public opinion surveys. The vast data prepared in this way will be valuable for structural reform of the pension system, including the comprehensive 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 based on the government’s principle that "while legal labor movements are thoroughly guaranteed, illegal acts are dealt with according to law and principles regardless of labor or management." He then urged, "Both labor and management should join together in labor reform for the future of Korea and its youth."

He also highlighted the tangible economic benefits from the trilateral summit meetings among Korea, the U.S., and Japan, as well as bilateral summits between Korea-U.S. and Korea-Japan. 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," and predicted, "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 now begun to gain momentum. 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 added, mentioning 142 summit meetings with 93 countries over one and a half years since his inauguration, "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 any setbacks to alleviate 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 crisis at hand."