President Yoon Chairs National Fiscal Strategy Meeting
Abolishes R&D Preliminary Feasibility Study to Accelerate Advanced Technology Development
Urges Overcoming National Emergency of Low Birthrate
President Yoon Suk-yeol is delivering a keynote speech at the 2024 National Fiscal Strategy Meeting held at the Government Complex Sejong in Sejong Special Self-Governing City on the 17th. [Image source=Yonhap News]
President Yoon Suk-yeol instructed relevant ministries on the 17th to completely abolish the preliminary feasibility study (PFS) for research and development (R&D) projects funded by the national budget. The plan is to significantly increase R&D support to back growth and thereby raise the level of freedom and welfare that the public can tangibly feel.
President Yoon also emphasized the need to thoroughly review financial projects related to boosting the birth rate to resolve the national emergency of low birth rates.
On the afternoon of the same day, President Yoon presided over the "2024 National Fiscal Strategy Meeting" at the Government Complex Sejong and made these requests to the relevant ministries. This meeting is held before budget formulation, attended by the Prime Minister, Cabinet members, and key figures from the People Power Party to discuss the future direction of fiscal management.
At the meeting, President Yoon mentioned that R&D, the foundation of growth, should have its PFS completely abolished and the scale of investment greatly expanded. The PFS was introduced in 1999 to pre-verify the policy and economic feasibility of projects funded by government finances. It has helped prevent excessive investment and fiscal waste.
President Yoon's directive to abolish the R&D PFS is interpreted as an intention to accelerate technology development in advanced fields. The plan is to enhance industrial and national competitiveness through expanded investment in technology development. The government is also expected to select and announce specific project areas exempt from the PFS.
President Yoon said, "Only when the economy grows rapidly can the ladder of social mobility increase and the level of freedom and welfare that the public feels can be dramatically improved." He added, "Fiscal policy must properly play its role to open an 'era centered on the common people and the middle class,' where the common people rise to the middle class and the middle class enjoys a more prosperous life."
Additionally, President Yoon announced plans to expand scholarships for students in difficult circumstances and to continue increasing basic pensions and livelihood benefits for vulnerable groups such as the elderly. He also emphasized the need to fully support the five major fiscal investments for medical reform without any setbacks.
In particular, President Yoon stressed that fiscal resources must be fully committed to overcoming the low birth rate, which is directly linked to the nation's survival.
He explained, "Despite investing a massive budget of 370 trillion won since 2006, the birth rate has continued to decline. To effectively raise the birth rate, the structure of fiscal projects must be thoroughly reviewed to improve the delivery system and execution methods."
President Yoon Suk-yeol is delivering a keynote speech at the 2024 National Fiscal Strategy Meeting held at the Government Complex Sejong in Sejong Special Self-Governing City on the 17th. [Image source=Yonhap News]
However, President Yoon mentioned that since resources are limited, sound fiscal management that tightens the belt is also necessary. He explained that reducing inefficient expenditures and properly investing where needed will enhance the efficiency of fiscal management.
President Yoon said, "As companies grow and create more jobs, we must focus on tax support and regulatory reform so that the fruits of corporate growth are evenly distributed to the people, while also making greater efforts to create a fair labor market."
He urged each minister not to remain at their desks but to diligently visit the field, listen to the voices of those in difficulty, and reflect these in policies and budgets.
During the meeting, discussions were held on the medium-term fiscal management from 2024 to 2028 and the direction for the 2025 budget formulation. Marking the third year of the Yoon Suk-yeol administration, the achievements of the past two years were reviewed, and future fiscal management directions were debated.
The meeting was attended by Prime Minister Han Duck-soo, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, Director of the Office for Government Policy Coordination Bang Ki-seon, Chairman of the Fair Trade Commission Han Ki-jung, Chairman of the Financial Services Commission Kim Ju-hyun, Vice Chairman of the Committee on Population, Aging and Future Society Joo Hyung-hwan, as well as People Power Party Emergency Committee Chairman Hwang Woo-yeo, Floor Leader Choo Kyung-ho, and Policy Committee Chairman Jung Jeom-sik.
The Presidential Office explained, "The matters discussed on this day will be actively reflected in the government's budget proposal for next year and the 2024-2028 National Fiscal Management Plan formulation process."
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