Yoon: "Pension, Labor, Education, and Medical Reforms Are Urgent National Tasks... Must Be Completed"

Determination to Promote Reform in 2025 Budget Address
President Yoon Absent, Prime Minister Han Deok-su Reads Speech
Next Year's Budget Focuses on Public Welfare Support and Structural Reform

President Yoon Suk-yeol stated on the 4th, "The four major reforms?pension, labor, education, and medical reform?are urgent and critical tasks that must be undertaken immediately for the survival of the nation," adding, "The government will complete these four major reforms no matter what difficulties arise."

During the plenary session of the National Assembly, President Yoon made these remarks through a policy speech read by Prime Minister Han Duck-soo. He said, "The budget plan for next year prepared by the government prioritizes support for people's livelihoods and focuses on structural reforms and improving the system for future leaps forward." President Yoon mentioned, "In the past two and a half years since the government took office, there has not been a single day of peace of mind due to significant difficulties both domestically and internationally." He evaluated, "Self-employed individuals and small business owners have struggled as much as during the COVID-19 pandemic due to rising prices and interest rate hikes, and the government has worked tirelessly for two and a half years to restore economic dynamism and alleviate hardships in people's lives amid internal and external crises."

He particularly explained that efforts have been concentrated on establishing a market economy and sound fiscal policy, and transforming the economic structure toward private-sector-led growth. President Yoon emphasized that structural reform is urgent above all to open a sustainable future as South Korea faces the unprecedented challenge of "low birthrate and aging population." He said, "We are putting all our efforts into medical reform that saves lives and regions," adding, "We will swiftly advance the immediate tasks of 'transforming tertiary general hospitals' and 'reforming non-reimbursable and indemnity insurance,' while investing more than 30 trillion won over the next five years to thoroughly support medical reform tasks and establish a 'regionally complete essential medical system.'"

He also cited pension reform, which significantly affects the lives of current and future generations, as a major livelihood issue. President Yoon said, "The government has faithfully collected public opinions through various methods such as generational meetings and visit interviews, and presented a unified government-level pension reform plan last September," adding, "The government’s plan is the starting point and benchmark for discussion, and I hope that the National Assembly will promptly establish a discussion framework so that social consensus can be reached quickly and legislation enacted."

"Accelerate Labor Reform... Push for Labor System Flexibility"

He promised to speed up labor reform and smoothly advance labor reform legislation such as the 'Labor Weak Protection Act' and the 'Fair Employment Act.' President Yoon stated, "We must accelerate the flexibilization of the labor system to expand job opportunities for the people," adding, "We will improve the wage system from seniority-based to job and performance-based, and allow individuals to freely choose various working styles." He also mentioned that the government’s actively promoted Neulbom School will be expanded to 2nd grade in elementary school next year and gradually extended to 6th grade, completing the 'public care era' where the state takes responsibility for child care. He urged the National Assembly to promptly pass related bills such as the Government Organization Act so that the Population Strategy Planning Department can be swiftly launched to overcome the population crisis.

President Yoon emphasized that, given the expected significant difficulties in fiscal management due to demographic changes caused by aging and uncertainties in the domestic and international environment, utmost efforts will be made to ensure fiscal sustainability. He explained, "Sound fiscal policy does not simply mean tightening belts," adding, "We will boldly reduce slack and unnecessary waste, and properly invest in the nation’s fundamental roles of restoring livelihoods and preparing for the future."

He continued, "The total expenditure for 2025 will be managed at 677 trillion won, a 3.2% increase from this year, and the fiscal deficit will remain within the fiscal rules the government is pursuing," adding, "Through next year’s budget, the government will focus on supporting four major areas: expanding customized welfare for the vulnerable, spreading economic vitality, improving economic structure for future preparation, and ensuring a safe society and global pivotal diplomacy."

Prime Minister Han Duck-soo is delivering a policy speech on the 2025 budget proposal and fund management plan at the plenary session held at the National Assembly on the 4th.
[Photo by Yonhap News]

To secure future growth engines, the government pledged to completely reform research and development (R&D) investment into a leading model and invest a record 29.7 trillion won focusing on three game changers?artificial intelligence (AI), bio, and quantum?and 12 strategic technologies. To create a semiconductor mega cluster, 4.3 trillion won in low-interest loans will be provided, and related infrastructure such as roads and water supply will be expanded in a timely manner to secure a semiconductor super-gap. The government will establish a 'Nuclear Power Industry Growth Fund' to restore and advance the nuclear power ecosystem and also plans to create a 'K-Defense Industry Export Fund.'

"North Korea-Russia Illegal Military Cooperation Threatens Security... Measures to be Taken"

Efforts to become a global pivotal country in diplomacy will also be strengthened. President Yoon said, "We will provide comprehensive support to ensure that the Asia-Pacific Economic Cooperation (APEC) summit held in Gyeongju next year yields great results," adding, "Next year’s official development assistance (ODA) will be expanded to 6.7 trillion won." Furthermore, President Yoon assessed, "Recent international security situations and the illegal military cooperation between North Korea and Russia pose a significant threat to our security," and promised, "We will thoroughly examine all possibilities and prepare countermeasures."

He also said, "We will drastically strengthen protection and support for North Korean defectors who risked their lives to find freedom in the Republic of Korea," adding, "Settlement support funds for North Korean defectors will be increased by 50%, and careful support will be provided for the education and employment of defector children." To eradicate drug crimes, which have recently spread even among youth, the government plans to increase related budgets by more than 20% compared to this year and block drug inflow at the source through expanded advanced detection equipment and strengthened international cooperation.

Meanwhile, President Yoon did not attend the policy speech on this day, marking the first time in 11 years that the Prime Minister read the speech. President Yoon deliberated repeatedly on whether to attend the policy speech but judged the situation unfavorable due to the confrontational National Assembly and the political broker Myung Tae-gyun’s recorded conversation scandal, and thus did not attend the policy speech.