President Lee's First Policy Speech to National Assembly: "Timing Is Everything in the Economy, Rapid Supplementary Budget Needed"

Request for Cooperation on Passing the 30.5 Trillion Won Supplementary Budget
President Lee: "It Is Irresponsible Neglect to Insist Solely on Austerity in an Unpredictable Situation"
President Lee: "Now Is the Time for the Government to Step Up So the Economy Can Rebound"
'Economy' Mentioned 24 Times, 'Growth' 12 Times, 'Peace' 5 Times

President Lee Jae Myung, in his first policy speech to the National Assembly since taking office on June 26, stated, "It is an act of irresponsible neglect and a denial of the government's very reason for existence for the government to remain idle and insist solely on austerity during an economic crisis." He added, "There is an old saying, 'Timing is everything in the economy.' Now is precisely that timing."

President Lee Jae Myung is delivering his first policy speech regarding the government's submission of the second supplementary budget bill on the 26th at the National Assembly plenary session hall in Yeouido, Seoul. Photo by the National Assembly Press Photographers Group, Yonhap News Agency

President Lee explained, "To overcome the economic downturn and restore livelihoods, we have drawn up a supplementary budget of 30.5 trillion won. It is important to inject vitality into our economy, especially the domestic market, through the 'rapid formulation of the supplementary budget' and 'swift execution'." In his policy speech that day, President Lee mentioned 'economy' 24 times, 'growth' 12 times, 'peace' 5 times, 'fairness' 5 times, and 'practicality' 3 times.

President Lee conveyed a grave awareness of the current situation and emphasized the role of the government. He said, "The illegal 12·3 emergency martial law dealt a fatal blow to an already sluggish domestic market, and the rapidly changing international situation?from the U.S.-driven tariff shocks to the recent Israel-Iran conflict?makes it impossible to predict even the immediate future." He continued, "Now is the time for the government to step up so that the economy can rebound."

President Lee stated, "The government must protect the lives of the people and respond to crises with practicality." He added, "Not ideology and slogans, but actions that revive the economy and improve people's livelihoods are the direction for the new government to pursue."

President Lee diagnosed, "While export recovery remains slow, even the domestic market is faltering. Amid high inflation, high interest rates, and a strong won, the economic growth rate has remained in the 0% range for four consecutive quarters and has even recorded negative growth." He continued, "The consumption capacity of the middle class is shrinking, and the debt burden on the self-employed has become unbearable. In the first quarter of this year, government consumption, private consumption, facility investment, and construction investment all experienced negative growth. The number of young people who have given up looking for jobs is at a record high, and the number of self-employed who have closed their businesses has reached 1 million per year."

In response, President Lee announced that 11.3 trillion won has been allocated to stimulate consumption as an immediate measure against the severe domestic downturn. He stated, "We have allocated about 13 trillion won for livelihood recovery consumption coupons to strengthen consumption capacity and support the revitalization of the domestic market." He explained, "The consumption coupons will be universally distributed to all citizens, but more tailored and substantial support will be provided to vulnerable groups and regions facing depopulation. Each citizen will receive between 150,000 won and up to 520,000 won." To breathe life into the local economy, he also explained that an additional 600 billion won in national funds will be injected into local gift certificates to increase the discount rate and expand the issuance by an additional 8 trillion won.

Yonhap News Agency

He announced that 3.9 trillion won has been allocated as an investment promotion budget to stimulate the economy. The core plan is to make early investments in executable social overhead capital (SOC) such as railways, roads, and ports, and to supply 5.4 trillion won in liquidity to the stagnant real estate project financing (PF) market. President Lee stated, "We aim to revive Korea's growth engine by expanding investments in artificial intelligence (AI) and renewable energy, as well as by supporting 1.3 trillion won in funding through contributions to venture and small and medium-sized enterprise (SME) parent funds."

Five trillion won has been allocated for livelihood stabilization to support small business owners and vulnerable groups. President Lee explained, "Even in an economic crisis, the burden of hardship is not the same for everyone." He continued, "The new government will write off long-term delinquent debts for 1.13 million vulnerable borrowers who are unable to repay, and will clear debts under 50 million won that have been delinquent for more than seven years, giving those who are effectively bankrupt and unable to repay an opportunity to return to economic activity." For small business owners who are faithfully repaying their debts, the repayment period will be extended and additional interest reductions will be provided. He also announced that closure support payments will be increased to help closed small business owners make a fresh start. In addition, 1.6 trillion won will be invested to strengthen the employment safety net, including expanding unemployment benefits and the National Employment Support System.

He also emphasized that a 10.3 trillion won revenue adjustment will be implemented to mark the beginning of fiscal normalization. President Lee stated, "In 2023 and 2024, there was a combined tax revenue shortfall of over 80 trillion won, and a significant shortfall is expected again this year." He continued, "If the tax revenue shortfall is left unaddressed, it will effectively force austerity fiscal management, becoming an obstacle to livelihood and economic recovery." He added, "The new government will pursue transparent and responsible fiscal policies, not irregular or expedient ones. By reflecting the revenue adjustment in the supplementary budget, we will ensure that even already allocated funds are used only for necessary projects, at the right time and place."

President Lee concluded, "The supplementary budget is the priming water to resolve the drought of the economic crisis and is the minimum measure for economic recovery." He added, "Based solely on a spirit of practicality, I will do my utmost to look after people's lives and open the path to economic recovery and growth."