Yoon: "In 2023, Let's Run Aggressively... Breakthrough with Exports and Startups"

-Emergency Economic and Livelihood Meeting and National Economic Advisory Council Presided... "Actively Overcome Difficult Economy"
-Pointing Out Government Regulations, "Create a Fair Competition System for an Efficient Market"
-Willingness to Promote Active Tax Reductions and Three Major Reforms... "Must Eliminate Deep-rooted Evils and Activate Reforms"

[Image source=Yonhap News]

[Asia Economy Reporter Baek Kyunghwan] President Yoon Suk-yeol stated on the 21st, "In 2023, let's be more proactive and very aggressive." He specifically identified the pillars of economic growth as the 'export drive' and 'Startup Korea,' emphasizing, "We must directly overcome the difficult economic situation through exports and run with the strong banner called Startup Korea."

In his closing remarks at the Emergency Economic and Livelihood Meeting combined with the National Economic Advisory Council held at the Blue House State Guest House that morning, President Yoon said, "I believe we have thoroughly reviewed and managed the difficult economic situation this year. In 2023, let's be truly proactive to make Korea a country that leaps forward."

President Yoon emphasized revitalizing exports and startups. He said, "We aim to directly overcome the economic situation through the export drive, and we must add 'Startup Korea' to this effort," instructing, "The Ministry of Economy and Finance should take the lead in supporting ventures and startups."

Referring to Chairman Choi Tae-won's remarks on 'market creation' and 'marketization,' he explained, "Government regulations are often viewed negatively, but regulation is not about prohibition. Its original meaning is government engagement." He added, "The government's direction is to create a fair competition system so that the market becomes very efficient." This means the government should create markets where companies can enter and generate income, thereby achieving public policy goals. He further explained, "If the government creates and properly manages the defense industry market, our defense capabilities can be very strongly secured through the profit activities of these companies." Regarding this, the Presidential Office stated, "It means leveling the playing field so that companies can compete fairly in the market," adding, "Please understand it as a concept similar to research and development for technological and industrial advancement."

He also urged management of inflation and employment. President Yoon said, "The most fundamental economic policy goals of the nation are inflation and employment," explaining, "It is very difficult to manage these two simultaneously, as shown in the 'Phillips curve' from economic principles. When the economy improves, prices rise, and naturally, wages increase due to labor shortages, causing inflation. Conversely, when the economy worsens, unemployment rises. Managing both well at the same time is very challenging." He continued, "While separate welfare policies are important, job creation and inflation control are truly important welfare and protection for the vulnerable. I ask the Ministry of Economy and Finance to take the lead in managing these aspects well in real-time."

Earlier, before the meeting, President Yoon urged active tax relief, saying, "We must significantly ease the tax burden on multi-homeowners to reduce the housing cost burden on citizens." Since the heavy taxation on multi-homeowners is directly passed on to economically vulnerable tenants, the intention is to reduce taxation on multi-homeowners to create conditions where tenants in disadvantaged market positions can rent at lower prices.

However, the government did not present specific measures when announcing the economic policy direction that day. The Ministry of Economy and Finance only mentioned in a prior briefing, "We expect to disclose everything by early January at the latest." Currently, it is highly likely that the conclusion on the capital gains tax surcharge rate for multi-homeowners will be reached through the tax reform plan in July next year.

President Yoon also stated, "We must launch reforms to eliminate accumulated evils and improve systems." This is the first time President Yoon has adopted the slogan of eliminating accumulated evils, which was a key theme of the previous Moon Jae-in administration, as a governing principle. Among the three major reforms?labor, pension, and education?he identified 'labor reform' as the most urgent task and reaffirmed the plan to accelerate related legislation from next year. He said, "Reforms must be swiftly and strongly promoted under social consensus."

Regarding exports and industry, he mentioned that national policy support is essential not only for economic cooperation with emerging markets, infrastructure orders, and trade but also for investment and support in strategic industries for future generations. According to the Presidential Office, during a closed-door briefing, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho reported on next year's economic policy direction, explaining key policies for overcoming challenges and achieving economic re-leap along with economic forecasts.

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