President Lee Calls for Bold Solutions to Reverse Declining Potential Growth Rate
Urges Bipartisan Cooperation Ahead of National Assembly Session
Emphasizes Thorough Follow-Up on Commercial Act and Yellow Envelope Act
Discusses National Growth Strategy with Key Ministries
On September 2, President Lee Jaemyung called for "bold solutions" to raise the potential growth rate, which has fallen to around 1%. He emphasized the need for a fundamental and comprehensive set of measures that can bring about substantial change, noting that while the government has distributed livelihood consumption coupons funded by fiscal spending, their impact may be short-lived.
At the Cabinet meeting held at the presidential office in Yongsan that day, President Lee stated, "We must raise the potential growth rate, which has dropped to about 1%. If we do not do so, it is clear that any policy will only have a temporary effect." He particularly noted, "It has been proven that appropriate fiscal spending has a positive effect on national economic growth. However, with each change of administration, the potential growth rate has declined by about 1 percentage point. Our administration must be the first to reverse this downward trend."
He reiterated the need for active fiscal and financial support. President Lee said, "Using active fiscal policy and productive finance as dual engines, please swiftly establish and implement a comprehensive, whole-of-government plan that encompasses support for technological innovation, regulatory reform, industrial restructuring, and talent development." He added, "I hope you will prepare bold solutions without being constrained by any limitations."
President Lee also mentioned the opening of the regular session of the National Assembly, emphasizing, "The National Assembly and the government are the two wheels that drive state affairs, and both are jointly responsible for the lives of the people and for pioneering the nation's future." He continued, "Currently, the country faces numerous difficult challenges. To address livelihood issues and advance reform agendas, both the ruling and opposition parties must pool their wisdom, and the National Assembly and the government must join forces in responsible governance."
He urged Cabinet members to maintain close cooperation with the National Assembly. President Lee said, "I ask all Cabinet members to clearly explain government policies and seek the cooperation of the National Assembly, based on respect for elected authority." This is interpreted as President Lee emphasizing unity between the party and government at a time when there is speculation about internal disagreements within the ruling bloc regarding prosecution reform methods.
Additionally, regarding the amendments to the Commercial Act and the so-called Yellow Envelope Act, which were included in the legislative promulgation items at the Cabinet meeting, President Lee stressed the need for mutual respect and cooperation among all market participants, including labor and management, to uphold the legislative intent. His remarks are seen as a response to concerns and opposition from business circles and the opposition over these laws. President Lee said, "As I often say, a bird flies with two wings. Both business and labor are important," and asked the relevant ministries to ensure thorough follow-up measures.
Meanwhile, President Lee received work reports from the Ministry of Economy and Finance, the Ministry of Science and ICT, the Ministry of the Interior and Safety, and other relevant ministries, and held discussions on the topic of the "national growth strategy." Following the report from the Ministry of the Interior and Safety, President Lee also highlighted the need to resolve the issue of wage arrears during discussions with the Minister of Employment and Labor. He criticized, "According to wage arrears statistics, 70% of the companies involved are repeat offenders. This is because penalties and sanctions are too weak. It should be regarded as a serious crime."
He further emphasized, "If there is a repeat offense, or if an employer who is fully capable of paying wages withholds them, there must be severe punishment." President Lee was particularly critical of the serious problem of wage arrears affecting foreign workers, calling it "a national disgrace." He pointed out, "Some intentionally withhold wages from foreign workers, knowing that if the worker is forcibly deported, they can get away with it forever." He instructed that "for foreign workers who are owed wages, consider suspending their deportation and giving them the opportunity to collect their wages before leaving the country." He also directed the Ministry of Justice to prepare relevant measures regarding forced deportation.
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