Yoon Suk Yeol stresses reforms, export strategy in New Year's address

Politics

Published: 01 Jan. 2023, 11:30 Updated: 01 Jan. 2023, 16:11

Yoon Suk Yeol stresses reforms, export strategy in New Year's address

President Yoon Suk Yeol gives his New Year's address at the Yongsan presidential office in central Seoul Sunday. [PRESIDENTIAL OFFICE]

President Yoon Suk Yeol stressed in his New Year's address Sunday that Korea's future depends upon three major reforms — labor, education and pension — and that "these cannot be delayed any longer."

In a live televised address from the Yongsan presidential office, Yoon laid out ways to overcome the current difficulties amid concerns over a global economic crisis, inflation caused by global supply chain disruptions and the possibility of the world economy slipping into a recession.

"Exports are our key to overcoming this complex crisis," said Yoon. "They form the basis of our economy and create jobs."

Addressing the grave economic situation, Yoon promised to "employ preemptive measures to keep the inevitable interest rate hikes to curb inflation from placing excessive borrowing costs on households and businesses."

He expressed concerns over the escalation of protectionism and the "bundling" of security, economic and technology cooperation policies.

"Our export strategy must differ from the past," said Yoon. "Those countries that share the universal values of freedom, human rights and the rule of law are banding together through their economies and industries. This solidarity based on these universal values is the most strategic choice in the current diplomatic landscape."

He said that the government will launch a project to provide $50 billion in overseas orders to help Korean businesses and strengthen infrastructure construction, nuclear power plants and the defense industry as the new export engine.

Yoon said that trade finance will be increased to an all-time high of 360 trillion won and that the government "will mobilize all policy capabilities to expand the reach of the Republic of Korea's exports to every part of the world."

He also promised to usher in a "Start-up Korea" era in the IT, bio, defense, nuclear power industries as well as in carbon neutrality and entertainment.

Yoon pledged "bold" investments in future strategic technology. He noted that the successful launch of the Nuri space rocket in June last year further opened opportunities for growing a space economy.

Stressing that the "future generations' fate depends upon the three major reforms," Yoon warned that "there is no future for a country that is preoccupied with vested interests and rent-seeking."

Yoon urged to drive economic growth through labor reforms.

He promised to "ensure fairness in labor-management and labor-labor relations as well as improve workplace safety while flexibly adapting the labor market to meet changing demands."

Yoon said the government must "support companies pushing to transition to a duty-oriented, performance-based pay system in a different manner than it does with those that are preoccupied with a system based on seniority that seeks compromise with well-paid, yet demanding unions."

He said that the "starting point for the labor reform is establishing rule of law in labor relations," to provide a way to "prevent unnecessary labor disputes and conflicts."

Yoon said educational reform is linked with balanced regional development, which can in turn "provide a quick solution for the problem of low birth rates."

"Higher education is directly related to our nation's competitiveness," said Yoon, adding that his government will work to transfer authority to local areas and provide them the support needed to link education to their specific industries.

On pension reform, Yoon called for a legislative proposal after conducting scientific research and investigations on pension finance, collecting public opinions and referring the issue to public discussions in a prompt manner.

"The sustainability of the pension system cannot be guaranteed unless the issue of the snowballing deficit in pension finance is resolved," said Yoon, stressing the need for research and lengthy discussions to attain social consensus.

The speech lasted around 10 minutes, slightly shorter than most presidential New Year's addresses. Yoon did not hold a New Year's Day press conference, which is usually a tradition for new presidents.

Earlier in the morning, Yoon, accompanied by key aides, paid respects at the Seoul National Cemetery in Dongjak District, southern Seoul, his first official activity of the new year.