President Lee on Situation in Europe: "Fundamental Cause Is Low Growth... Must Serve as a Cautionary Tale"

▲ President Lee Jae-myung speaks during a Cabinet meeting held at Cheong Wa Dae on October 27.

President Lee Jae-myung said that South Korea "must also take it as a cautionary tale," addressing recent social unrest in European countries such as France, where large-scale protests have erupted.

In his opening remarks at the 46th Cabinet meeting held at Cheong Wa Dae today (October 27), President Lee noted that hardship in people's livelihoods, economic stagnation, and inequality have been cited as reasons behind the current situation in Europe, diagnosing that "ultimately, the biggest and most fundamental cause is low growth."

He added, "Prolonged low growth deepens youth unemployment and polarization while weakening the fiscal base, shaking the stability of society as a whole to its roots."

He also explained, "Looking solely at economic indicators, the Republic of Korea has achieved very impressive results, but the recovery of people's livelihoods remains slow, and disparities in income, assets, and jobs persist," adding, "The difficulties experienced by young people due to the overall lack of opportunities are also immense."

President Lee emphasized, "To resolve these issues, sustainable growth is ultimately crucial. With expanded fiscal capacity, we must expand investments in high-tech industries, foster domestic demand, and actively mobilize policy measures so that citizens can tangibly feel the recovery of their livelihoods."

He continued, "When a foundation for strong growth is established through this, the debt ratio will stabilize as the size of the economy grows, and public finances will become solid, laying stepping stones for sustainable growth."

President Lee noted, however, "While it is very important to examine overseas cases and draw insights from them, we must be cautious of drawing far-fetched analogies by excessively magnifying only a single aspect."

He also called for further accelerating growth strategies, stating, "Our current account surplus in the second quarter of this year ranked second globally, surpassing the combined surpluses of global manufacturing powers Germany and Japan," adding, "While this is historic, we must neither become complacent nor satisfied."

In particular, he urged, "We must accelerate public projects with sluggish execution and maximize housing construction starts," adding, "Housing supply itself is meaningful, and it also plays a role in revitalizing the sluggish construction sector, so please consider not only state credit support but also fiscal support if necessary."

President Lee also stated, "We must also pursue effective reductions in the cost of living to expand consumer spending capacity. While we have made significant efforts to stabilize prices so far, bolder policy development and execution are needed."

(Photo: Yonhap News)

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