President Lee Jae-myung said on Monday (November 2), "We must make a major shift away from 'growth for a few,' where growth opportunities and achievements are concentrated in specific regions, social classes, and a handful of corporations, to 'growth for all,' where every region and all citizens evenly share in the opportunities and fruits of growth."

Delivering a policy speech on next year's budget proposal at the National Assembly, President Lee stated, "To overcome the limitations of 'K-shaped growth,' which deepens inequality and polarization, we must break away from the outdated, dichotomous debate between growth and distribution and apply a new growth formula."

President Lee first noted, "Our economy continues to show a clear V-shaped recovery," adding, "Next year, with the full repayment of public funds injected during the foreign exchange crisis, we will finally bring an end to overcoming the IMF crisis after 30 years.

This is a precious achievement built together by the National Assembly, which cooperated actively amid the complex crisis, and our citizens, business leaders, and workers, who did their utmost," expressing his gratitude.

Even so, President Lee emphasized the need to focus efforts on easing polarization, saying, "Despite these achievements, the shadows of inequality and polarization still hang heavily over our society."

Mentioning the three major livelihood projects pursued by the government—job creation, microfinance, and housing stabilization policies—President Lee called them "a first step toward realizing (the resolution of polarization)," and anticipated that "the 'Three Mega Projects' and the 'Seven Seeds' will also achieve even greater results on the foundation of these three major livelihood projects."

President Lee defined next year's budget proposal as "a budget that seizes the future to build a leading nation aiming for an irreplaceable Republic of Korea, as well as a growth-spreading budget that links national growth to the growth of our citizens."

During the speech, he also underscored the importance of establishing a Future Response Fund and deploying additional tax revenue.

President Lee said, "The Future Response Fund is an innovative fiscal stabilization mechanism that responds to fluctuations in tax revenue," and explained, "We will concentrate the investment of additional tax revenues secured through the collective efforts of our people into four key pillars: youth, future growth engines, regional areas, and education and talent development."

President Lee also introduced three principles of the budget formulation, noting, "Total spending for next year will be 820.9 trillion won, up 12.8 percent from this year, marking the highest growth rate in history and the largest fiscal investment ever."

President Lee said, "We compiled the budget under the principles of investing boldly without wasting on inefficiencies, prioritizing fiscal spending over tax expenditures, and favoring provincial regions for balanced national development," adding, "Accordingly, we reexamined all projects from scratch."

He went on to outline details of specific projects.

First, he promised, "We will expand the sales base of local commercial districts by issuing 25.6 trillion won in local love gift certificates and 4.5 trillion won in Onnuri gift certificates," adding, "We will also help stabilize housing by expanding public rental housing for young people to 106,000 units."

For balanced regional development, he stated, "We will begin the phased relocation of 44 central administrative agencies in the capital region to Sejong starting next year, finalize plans within this year for relocating public institutions in the capital region to provincial areas to begin next year," and added, "We will establish a Special Growth Engine Subsidy and create regional growth hubs based on the 5 poles and 3 special regions initiative."

President Lee said, "We will invest boldly in AI and future growth drivers," outlining investment plans for the Three Mega Projects and Seven Seeds initiatives.

He also stated, "We will also accelerate the major energy transition," adding, "We will invest 2.8 trillion won in expanding renewable energy, such as the spread of sunlight income villages, and expand electric vehicle subsidy support to a record 430,000 units."

He also introduced the budget for peace and security.


In particular, President Lee emphasized, "Next year's defense budget has been set at 73.3 trillion won, an increase of 8.2 percent," adding, "For firm self-reliant defense, we will secure formidable core forces without disruption, including the capabilities necessary for an early wartime operational control (OPCON) transfer, nuclear-powered submarines, and the KF-21."

He added that the administration also paid careful attention to budgeting for a safer society, such as supporting heavy rain prevention infrastructure, and establishing a resource security fund to avoid being shaken by supply chain crises.

President Lee assessed, "The ever-changing global situation and global economic environment are constantly increasing uncertainty," adding, "Whether we will eventually be run aground by the waves or ride the waves, turn crises into opportunities, and move forward depends on our choices and actions."

He then urged, "The government, the National Assembly, the ruling party, and the opposition party must all join forces.

Externally, we must respond with one voice to secure our national interests in the fierce competition of nations, and internally, we must exercise wisdom to narrow disparities and secure growth drivers."

President Lee said, "The key is execution and speed," adding, "I ask for the active cooperation of the National Assembly so that next year's budget proposal and accompanying bills can be finalized by the statutory deadline of December 2. The government will listen with an open mind during the deliberation process and actively incorporate better alternatives."

(Photo courtesy of the National Assembly Press Corps, Yonhap News)