'K-Shaped Polarization Warning' President Lee: "National Crisis, Extraordinary Youth Measures to Be Prepared"

Growth Rate Projected at 2% This Year
"Performance in Indicators Alone Is Not Enough"
"All Citizens Should Share in Opportunities and Benefits of Growth"
"Focusing on Strategic Industries Like Semiconductors, Normalizing Financial Markets"
Policy Chief Kim Yongbeom Holds Meeting with Top 10 Conglomerate Executives
"For Issues Involving Multiple Ministries, the Blue House Will Take Direct Charge"

President Lee Jaemyung stated, "We recognize the shadow of K-shaped growth, which is concentrated on our youth generation, as a grave national crisis," adding, "We will devise extraordinary youth measures that go beyond the existing policy framework to create a society where young people can once again have hope." K-shaped growth refers to a polarization phenomenon in which, during economic recovery, one segment grows rapidly while the other stagnates or declines.

Yonhap News Agency

On January 9, through his official Facebook page, President Lee remarked, "Results reflected in indicators alone are not sufficient." He continued, "True growth is only achieved when fair opportunities are open to young people, when small and venture businesses regain vitality, and when local regions develop together." He further emphasized, "I will do my utmost to achieve an economic transformation in which not only national growth but also all citizens can share in the opportunities and benefits of growth."

The President projected South Korea's economic growth rate for this year at 2%. He said, "This year marks the first year that the Lee Jaemyung administration will take full responsibility for and actively lead our economy." He added, "We will focus on fostering strategic industries such as semiconductors and solidify a robust and sustainable foundation for growth by normalizing the financial markets." He evaluated last year as having laid the groundwork for a new leap forward by putting the struggling people's economy back on the path to recovery.

Earlier that day, while presiding over the "2026 Economic Growth Strategy National Briefing," President Lee also warned against the uneven growth resulting from the current "K-shaped growth," which differs from the past. He stated, "The shadow of K-shaped growth, which is concentrated on the youth generation that bears the future, is not just a youth issue but also threatens the long-term future growth engine of the Korean economy." He pointed out, "If national growth and corporate profits do not translate into jobs and opportunities for young people, it is difficult to call that society healthy."

President Lee also expressed concern, saying, "More than 400,000 young people who have been pushed out of the labor market are being asked by companies for work experience, but in reality, no one is taking responsibility for providing that starting point." He added, "I am worried that the next generation may lose hope and despair over the current situation." He instructed, "The government should fundamentally re-examine whether the current policies are sufficient and respond swiftly with policy imagination unconstrained by existing frameworks to devise effective measures."

Yonhap News Agency

Meanwhile, following the "2026 Economic Growth Strategy National Briefing," Policy Chief Kim Yongbeom held a meeting with executives from the top 10 conglomerates as part of efforts to expand communication with major companies at the start of the new year. Kim listened to the companies' investment plans for this year and their strategies for expanding youth employment, and explained the government's key policy directions.

In particular, the Blue House announced its intention to directly oversee issues involving multiple ministries. The Blue House spokesperson's office explained, "For matters involving several ministries, we have decided that it is desirable for the Blue House to communicate directly with companies and support problem-solving, beyond the level of individual ministries, and to strengthen a more closely coordinated system of cooperation."