[Budget Address] "Protect the Vulnerable in Tough Economic Times"... Yoon Emphasizes 'Support' 32 Times and 'Economy' 13 Times

First Budget Reduction Since 2010, 639 Trillion Won Allocated
Yoon "Includes Efforts to Address Global Complex Crises and Resolve Livelihood Issues," Requests National Assembly Cooperation

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] President Yoon Seok-yeol's 2023 budget proposal and fund management plan speech emphasized 'support' for socially vulnerable groups while maintaining sound fiscal management. The intention is to differentiate from the Moon Jae-in administration, which pursued universal welfare policies through expansionary fiscal policy, and to make every effort to prevent the collapse of the national economy and the lives of vulnerable social groups amid the global economic downturn.

In his speech at the National Assembly on the morning of the 25th, President Yoon emphasized the word ‘support’ 32 times. It appeared overwhelmingly more than words such as economy (13 times), finance (12 times), nation (11 times), investment (9 times), and sound (6 times).

President Yoon criticized the Moon Jae-in administration’s fiscal management direction, saying, "Due to reckless fiscal management driven by political purposes, the fiscal deficit rapidly expanded, and the national debt has already exceeded 1,000 trillion won, about half of the Gross Domestic Product (GDP)." He explained the reason for setting the budget at 639 trillion won, reducing it for the first time since 2010 compared to the previous year.

First, by adjusting the standard median income to the largest extent ever, the maximum payment amount for livelihood benefits for a four-person household was increased, reflecting 18.7 trillion won for basic living security support. The scope of social insurance support for low-wage workers, special-type workers, and artists will also be expanded to provide additional support to about 278,000 people.

Disability allowances will be raised for the first time in eight years, and the plan includes strengthening the guarantee of mobility rights for the disabled by distributing an additional 2,000 low-floor buses. Regarding single-parent child-rearing, the plan is to expand the current median income threshold from 52% to 60%.

President Yoon, who personally visited sites damaged by heavy rains and typhoons in August and September this year, explained that interest-free loans will be newly introduced to help residents of semi-basement and small-room villages move to safer housing environments, and up to 50 million won will be supported when relocating to private rental housing.

For the younger generation, policies to expand assets such as youth cost-price housing, 54,000 first homes near subway stations, and youth leap accounts will be provided, and for the elderly, policies related to old-age life such as increasing basic pensions and expanding service-type jobs will be supported.

The emphasis on ‘support’ was stronger than in the May speech on the 2022 second supplementary budget for COVID-19 loss compensation, where ‘economy’ was mentioned 10 times and ‘crisis’ 9 times. This reflects President Yoon’s firm belief that vulnerable groups must be prevented from being driven into dead ends amid high interest rates, high prices, and high exchange rates.

In his speech that day, President Yoon appealed to the National Assembly, saying, "The budget submitted by the government this time contains the comprehensive considerations and plans on how our government will respond to the global complex crisis and how it will resolve livelihood issues."

In addition, to secure the nation’s future growth engines, the government promised to invest 1 trillion won in training specialized personnel in memory and system semiconductors, and to support a total of 4.9 trillion won in research and development (R&D) in quantum computers, aerospace, artificial intelligence (AI), and advanced biotechnology.

[Image source=Yonhap News]

This content was produced with the assistance of AI translation services.