Yoon: "Pension, Labor, Education, and Medical 4 Major Reforms Are Urgent Tasks... Must Be Completed" (Comprehensive)

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 reforms?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." Despite facing challenges such as the lowest approval ratings ahead of the midterm on the 10th and the special investigation law concerning First Lady Kim Keon-hee, he reiterated his unwavering commitment to pushing forward the four major reforms. Notably, the word "reform" appeared 19 times?the most frequent term?in his 30-minute policy speech, emphasizing steadfast progress on reform tasks.

In the policy speech delivered at the National Assembly plenary session and read by Prime Minister Han Duck-soo, President Yoon said, "The government’s budget proposal for next year prioritizes support for people’s livelihoods and focuses on structural reforms and improving the system for future leaps forward."

President Yoon first mentioned, "In the past two and a half years since the government’s inauguration, 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 livelihoods amid internal and external crises." He explained that efforts have been concentrated on establishing a market economy and sound fiscal policy and transforming the economy’s structure toward private-led growth.

President Yoon emphasized that structural reform is urgently needed to open a sustainable future as South Korea faces an 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 hospitals' and 'reforming non-reimbursable and indemnity insurance,' while investing over 30 trillion won over the next five years to thoroughly support medical reform tasks and establish a 'regionally complete essential medical system.'"

Pension reform was also cited as a critical livelihood issue. Reflecting the fact that pensions significantly affect the lives of current and future generations, there is a strong will that reform can no longer be delayed. 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 discussions, and I hope 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"

Prime Minister Han Duck-soo is reading the policy speech on the 2025 budget proposal and fund management plan on behalf of President Yoon Seok-yeol at the plenary session held at the National Assembly on the 4th. Photo by Kim Hyun-min

He promised to speed up the slow labor reform and smoothly push forward labor reform legislation such as the 'Labor Weak Protection Act' and the 'Fair Recruitment Act.' President Yoon said, "We must accelerate labor system flexibility 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 stated that the government’s Neulbom School will be expanded to second grade in elementary school next year and gradually extended to sixth 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 from aging and uncertainties in the domestic and international environment, thorough efforts will be made to secure fiscal sustainability. He explained, "The government’s 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 livelihood recovery and future preparation."

He continued, "The total expenditure for 2025 will increase by 3.2% from this year to 677 trillion won, and the fiscal deficit will remain within the fiscal rules the government is pursuing," adding, "Through next year’s budget, the government will focus support on four major areas: tailored welfare expansion for the vulnerable, spreading economic vitality, economic structural improvement for future preparation, and safe society and global pivotal diplomacy."

To secure future growth engines, he promised 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 timely to secure a semiconductor super-gap. He also plans to establish a 'Nuclear Power Industry Growth Fund' to restore and advance the nuclear power ecosystem and a 'K-Defense Industry Export Fund.'

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

Efforts to strengthen diplomacy as a global pivotal nation will also be enhanced. 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 diagnosed, "Recent international security situations and illegal military cooperation between North Korea and Russia pose a great threat to our security," promising, "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, he said the related budget will be increased by more than 20% compared to this year, and drug inflow will be blocked at the source through expanded advanced detection equipment and strengthened international cooperation.

Yoon Urges "Swift Implementation to Ensure Citizens Feel Policy Results Within the Year"

Prime Minister Han Duck-soo is reading the policy speech on the 2025 budget proposal and fund management plan on behalf of President Yoon Seok-yeol at the plenary session held at the National Assembly on the 4th. Photo by Kim Hyun-min

Meanwhile, President Yoon did not attend the policy speech that 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 Myeong Tae-gyun’s recording scandal, thus deciding not to attend.

The policy speech on the budget proposal by a sitting president began with former President Roh Tae-woo’s speech in October 1988. There were no presidential budget speeches during the Kim Young-sam and Kim Dae-jung administrations. Former Presidents Roh Moo-hyun and Lee Myung-bak delivered budget speeches in October 2003 and October 2008, respectively, and thereafter the Prime Minister read the speech during their terms. Former Presidents Park Geun-hye and Moon Jae-in attended the policy speech every year from their first year in office, and President Yoon delivered the speech directly in 2022 and 2023, establishing an 11-year tradition of sitting presidents giving the policy speech. However, with President Yoon’s absence this year, this tradition has been broken for the first time in 11 years.

On the same day, President Yoon met with Prime Minister Han and urged, "Please encourage and monitor each ministry to swiftly push forward the ongoing reform tasks so that citizens can directly feel the policy results within the year."