Yoon Hosts Luncheon with National Chamber of Commerce Chairpersons
"Rising Government Bond Yields Make Financing and Investment Difficult"
"'Companies Are the Nation' Toast Agreed 300%"
President Yoon Suk-yeol reaffirmed on the 19th that he will maintain a sound fiscal policy, stating, "The argument that the state should spend money even if it means going into debt is a claim that ruins the market and makes it difficult for businesses."
On the same day, President Yoon held a luncheon meeting with the chairpersons of the National Chambers of Commerce and Industry at the Blue House State Guest House. According to Kim Soo-kyung, spokesperson for the Presidential Office, he said, "There is a temptation to expand fiscal spending ahead of the general election, but if the government spends too much money, it becomes difficult to proceed with private and market-centered investments."
Spokesperson Kim explained that the luncheon meeting was arranged to communicate openly with business representatives from various regions and to strengthen the 'Public-Private Team Korea' cooperation to revitalize the economy.
The event was attended by Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry (KCCI), other chairpersons of the National Chambers of Commerce and Industry, the Seoul Chamber of Commerce and Industry chairpersons, and chairpersons of the district chambers of commerce in Seoul. From the government side, Minister of Trade, Industry and Energy Moon Sung-wook attended, along with Lee Kwan-seop, Chief of Policy Office of the Presidential Office, Hwang Sang-moo, Senior Secretary for Civil Society, Park Chun-seop, Senior Secretary for Economic Affairs, and Park Sung-taek, Secretary for Industrial Policy.
In his opening remarks, President Yoon said, "Amid an unprecedented global complex crisis, I have done my best with the single-minded determination to protect people's livelihoods," adding, "Immediately after taking office, I established the Emergency Economic and Livelihood Council and prioritized crisis response and livelihood issues above all else."
President Yoon continued, "So far, by maintaining a sound fiscal policy, we have prevented the rise of government bond yields and managed the foreign exchange market stably despite high interest rates," adding, "We have also made every effort to manage prices from the supply side through large-scale tariff allocations and supply-demand management."
President Yoon explained that excessive government fiscal spending worsens private and market-centered investments, saying, "This is because the rise in government bond yields, which form the basis of market interest rates, makes it difficult for companies to raise funds and invest."
He also referred to a report by the British weekly magazine The Economist, which ranked South Korea second among 35 OECD countries in economic evaluation, emphasizing, "This means that our government's sound fiscal policy was appropriate even amid the global complex crisis." In particular, he stressed, "The government will do everything it can for people's livelihoods and our economy," and "We will firmly prevent excessive politics and ideology from dominating the economy."
Regarding the livelihood economy, President Yoon promised, "We will reduce the burden of essential living expenses such as grocery prices, housing, transportation, and communication, and expand financial supply to low-income people."
On trade and economic diplomacy, he said, "We will create a business-friendly environment and continue to expand the playing field for our companies to freely compete on the global stage. We will do our best together with businesspeople so that the public can tangibly feel the economic achievements," referring to the Team Korea spirit.
Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry and SK Group Chairman, representing the attendees, said, "The current government has prioritized people's livelihoods such as jobs and prices while stably managing macroeconomic risks, and has steadfastly pursued private-centered economic policies such as killer regulation improvements and the three major reforms." He added, "The advanced strategic industries like semiconductors and batteries are the results of decades of proactive investment. Please sow the 'seeds of future industries' with a vision for 20 to 30 years ahead."
Lee Jae-ha, Chairman of the Daegu Chamber of Commerce and Industry, expressed gratitude just before the luncheon for President Yoon's active support for regional issues such as the construction of the Daegu-Gyeongbuk New Airport, and requested continued efforts for nurturing future new industries and balanced development, proposing a toast with the phrase "Companies are the nation."
President Yoon responded at the conclusion of the event, saying, "I 200%, 300% agree and empathize with the regional chamber chairperson's toast that 'Companies are the nation.'"
He continued, "Companies are places where capital, labor, technology, and innovation come together to create value and share the created value to sustain our lives," adding, "They are not places that exploit workers, but rather companies that serve as the foundation of workers' lives. I believe that government support for companies is the quickest way to help workers."
Furthermore, he urged, "Let us all work together so that the government and companies can achieve even better results next year."
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