[2nd Anniversary of Yoon's Inauguration] ③ Reviewing the Top 10 Pledges... Low Birthrate Measures 'Achievements' · R&D Budget 'Hasty'

Half Success in COVID Policy Support
Securing Jobs in Semiconductor Cluster
Reduced Political Drive Over Ministry of Gender Equality Abolition
Uncertain Construction of 2.5 Million Housing Units

President Yoon Suk-yeol's administration is showing some progress in key livelihood reform areas such as low birthrate, carbon neutrality, and job creation during the first two years of his term, based on the top 10 policies and pledges he proposed as a presidential candidate. However, policies related to real estate supply, becoming a leading country in core technologies, and the abolition of the Ministry of Gender Equality and Family are increasingly facing challenges amid partisan conflicts.

Among the top 10 policies and pledges previously submitted to the National Election Commission, the highest priority, "Emergency COVID-19 Relief and Post-COVID Plan," achieved only partial success following the declaration of endemic status. The core of this policy was compensating small business owners and self-employed individuals for losses caused by COVID-19. Initially, a support fund of 50 trillion won was planned, but it was ultimately reduced to about half, around 25 trillion won. The actual loss compensation plan announced by the 20th Presidential Transition Committee proposed differentiated payments totaling 33.1 trillion won plus α, and the final loss compensation budget reflected in the 2022 supplementary budget passed by the National Assembly was 24.6 trillion won. The pledge to establish a "Presidential Emergency COVID-19 Relief Headquarters" was abandoned.

Sustainable job creation and carbon neutrality policies utilizing nuclear power have laid the groundwork for pledge implementation through strong initial government drive. The core of the Yoon administration's job creation policy is summarized as "creating a new industrial ecosystem centered on convergence industries." This began with the government's confirmation earlier this year to invest 600 trillion won by 2047 in the southern Gyeonggi Province to establish the world's top-level Yongin semiconductor mega cluster. It is expected to create a total of 3.46 million direct and indirect jobs, including skilled personnel and partner companies. However, passing the "Special Act on National Power Grid" to supply 7GW (gigawatts) daily for cluster operation remains a challenge.

Policies aimed at addressing the low birthrate, such as expanding parental leave, are also steadily being introduced. A representative example is the "6+6 Parental Leave System," implemented from this year. This system provides 100% of the ordinary wage as parental leave pay for the first six months, up to a maximum of 4.5 million won, when parents of children under 18 months take parental leave simultaneously or sequentially. This policy was also selected as the top policy by the Ministry of Economy and Finance last year. However, disagreements between the Low Birthrate and Aging Society Committee and the government over budget allocation persist, making urgent consensus necessary.

Efforts to strengthen carbon neutrality by abandoning the nuclear phase-out policy have shown positive results despite opposition from opposition parties. Since the Yoon administration took office, the goal of exporting 10 nuclear reactors by 2030 has been pursued, with the 2022 contract to build the El-Dabaa nuclear power plant in Egypt generally receiving bipartisan support. Last year, the administration also succeeded in securing a contract for a tritium removal facility (TRF) at a Romanian nuclear power plant. However, while increasing the share of nuclear power usage, the "Special Act on High-Level Radioactive Waste" is on track to be automatically repealed by the 21st National Assembly. This is due to unresolved disagreements between ruling and opposition parties over storage facility capacity and the timing of securing interim management facilities.

On the other hand, pledges such as supplying 2.5 million housing units, realizing a leading country in science and technology, and abolishing the Ministry of Gender Equality and Family face uncertain prospects. The dominant view is that the ruling party will find it difficult to gain momentum for real estate policies following the opposition's landslide victory in the April 10 general election. The Yoon administration pledged to supply more than 2.5 million new housing units nationwide and over 1.3 million in the metropolitan area during its term. Accordingly, efforts are underway to expedite the construction of the 3rd new towns and the reconstruction of the 1st new towns in the metropolitan area (Bundang, Sanbon, Ilsan, Jungdong, Pyeongchon), but policy support remains a hurdle. The government has proceeded with reconstruction without safety inspections, but the market is hindered by high interest rates and rising construction costs.

[Image source=Yonhap News]

The government's policy to cut R&D budgets has also been criticized as hasty administration. Previously, the Ministry of Science and ICT planned a 2023 national R&D budget of 25.9 trillion won, a 5.2 trillion won (16.6%) reduction compared to this year. In response to backlash from the scientific community, the Presidential Office is considering an additional budget allocation of about 30 trillion won for R&D. Criticism has arisen that budgets coordinated with ministry officials were hastily adjusted by several trillion won based on a single remark from the president.

Additionally, the pledge to abolish the Ministry of Gender Equality and Family has become uncertain amid a ruling party minority and opposition majority situation, making amendments to the Government Organization Act for ministry abolition unclear. In foreign affairs and security, strengthening security cooperation among South Korea, the United States, and Japan is regarded as a major achievement, but relations with China and North Korea remain stagnant.