'Korea in Crisis'... Kim Dong-yeon Proposes "Super Emergency Budget for Livelihood and Appointment as Economic Ambassador with Full Authority"

Gyeonggi Province Governor Kim Dong-yeon urgently proposed to the government and political circles the ‘Three Emergency Management Measures for the Republic of Korea’: a super supplementary budget for people’s livelihood, appointment of an economic plenipotentiary ambassador to respond to Trump’s second term, and revitalizing corporate morale.

At a New Year press briefing held at an undisclosed location in Suwon city on the 13th, Governor Kim said, “Our economy requires extraordinary measures, and it is necessary to swiftly implement the actions that must be taken immediately. The policies and methods used so far will not work. If necessary, we must even attach an oxygen mask and provide emergency transfusions,” emphasizing the urgency.

First, Governor Kim stated, “On the ground, people’s livelihoods are drying up day by day, and our economy is being pushed closer to the edge,” and insisted, “We must push forward with a ‘super supplementary budget for people’s livelihood’ before the Lunar New Year.”

He added, “The longer we wait, the more money it will cost. Now, it is not 30 trillion won but a situation where it must be increased to 50 trillion won,” advising, “At least 15 trillion won should be invested in the livelihood economy such as small business owners and self-employed individuals, at least 10 trillion won in livelihood recovery support funds that provide thicker and more detailed support to vulnerable groups according to income, and at least 15 trillion won in future growth engines.”

Furthermore, he emphasized, “Trump’s second-term administration will launch in a week, but our government’s response system is not prepared at all, and companies are each fending for themselves,” urging, “Therefore, the ‘Emergency Response System for Trump’s Second Term’ must be immediately activated.”

Gyeonggi Province Governor Kim Dong-yeon is urgently requesting the government to prepare a supplementary budget for super livelihood measures at the '2025 New Year Press Conference' held at a restaurant in downtown Suwon on the 13th. Provided by Gyeonggi Province

The emergency response strategy for Trump’s second term proposed by Governor Kim includes ▲building export breakwaters against tariff bombs, exchange rate risks, and supply chain restructuring ▲temporary abolition of import tariffs on raw materials for export ▲lifting limits on trade insurance and exchange rate fluctuation insurance support for small and medium export companies ▲and providing subsidies equivalent to those for foreign-invested companies for advanced production facilities and research and development (R&D) investments in key export strategic industries.

He also said, “Let the ruling and opposition parties and the government agree to promptly appoint a ‘Republic of Korea Economic Plenipotentiary Ambassador’ responsible for external economic issues including trade and investment,” adding, “With the economic plenipotentiary ambassador at the center, the National Assembly, government, and business community should move together as ‘Team Korea’ to fully respond to Trump 2.0.”

Governor Kim also proposed three major measures to revitalize corporate morale and boost investment sentiment.

He said, “Economic sentiment has rapidly frozen due to martial law and impeachment, so we must revive the morale of companies, the most important actors in our economy,” and insisted, “The temporary investment tax credit should be reintroduced for three years so that companies can increase investments with predictability.”

He continued, “To quickly process corporate investment-related permits and approvals within the first half of the year, the central and local governments should fast-track investments that are delayed, on hold, or under review, and temporarily suspend tax audits on companies,” proposing these measures.

Finally, Governor Kim pointed out, “The greatest risk to our economy at this moment is political uncertainty caused by illegal martial law, rebellion, and impeachment,” and warned, “Without promptly removing this uncertainty, all remedies will be ineffective.”

In particular, he cautioned, “If we do not eliminate the ‘Yoon Seok-yeol shock’ that has struck our economy and fail to properly respond to the ‘Trump shock,’ the Republic of Korea may disappear from the world economic map within 10 years.”