Yoon: "Previous Government Increased National Debt by 400 Trillion Won... Need to Improve Fiscal Spending Efficiency" (Comprehensive)

Presiding Over Cabinet Meeting for Budget Deliberation and Resolution
"Restructuring 24 Trillion Won in Expenditures... Allocating to Necessary Tasks"
"Paradigm Shift in Low Birthrate Policy, Avoiding Cash Support"

President Yoon Suk-yeol is speaking at the Cabinet meeting held on the 27th at the Yongsan Presidential Office Building in Seoul. [Image source=Yonhap News]

President Yoon Suk-yeol stated on the 27th, "Sound fiscal management has been the fundamental principle of finance upheld by the government through the preparation of three budget proposals," adding, "We must tighten our belts, boldly reduce inefficient expenditures, and properly invest in essential areas to enhance the efficiency of fiscal spending."

On the same day, President Yoon presided over a Cabinet meeting at the Yongsan Presidential Office in Seoul to review and approve next year's budget proposal. He said, "This 2025 budget proposal reflects the government's intense deliberation and efforts for efficient fiscal management."

President Yoon emphasized the necessity of sound fiscal management. He first pointed out, "The previous administration increased national debt by more than 400 trillion won over five years," and lamented, "The significant increase in fiscal burden has made it difficult for the government to operate."

"Fiscal burden greatly increased... Government finds it difficult to operate"

Since the government's establishment in 1948 until 2017, the accumulated national debt was 660 trillion won, but it surged to 1,076 trillion won in just five years, creating an environment where government operations have become challenging. He expressed particular concern that, due to aging, significant difficulties are expected in fiscal management, especially regarding health insurance and pension expenditures.

President Yoon introduced, "We re-examined the validity and effectiveness of all fiscal projects and carried out a restructuring of expenditures totaling 24 trillion won," adding, "The resources saved through this were intensively invested in tasks that the state must undertake." He continued, "Our government has continuously broken down barriers between ministries and departments to quickly resolve livelihood issues," emphasizing, "Following this trend, we expanded collaborative budgeting so that multiple ministries can plan and execute projects together across boundaries."

President Yoon said, "The budget proposal is like a map containing the direction and philosophy of next year's national administration," and added, "Government officials, including Cabinet members, should thoroughly explain to the public and the National Assembly what considerations are embedded in the budget proposal and what changes it aims to bring about."

President Yoon Suk-yeol salutes the national flag at the Cabinet meeting held on the 27th at the Yongsan Presidential Office building in Seoul. [Image source=Yonhap News]

Furthermore, President Yoon stressed the importance of budget allocation to address the low birthrate issue. He mentioned, "To reverse the low birthrate trend, which is directly linked to the survival of our country, we will completely transform the fiscal support paradigm," and said, "We will avoid simple cash support and focus on three core areas most needed in actual childcare settings: work-family balance, child-rearing, and housing."

President Yoon explained, "We will expand spouse paternity leave to 20 days to ensure sufficient childcare time at necessary moments and significantly increase childcare leave benefits," adding, "In cases of sudden child illness or urgent need for assistance, we will newly provide emergency care services through workplace daycare centers."

Regarding welfare for the vulnerable, he introduced, "Next year's standard median income, the cornerstone of all welfare projects, will be raised by a record 6.42%, and livelihood benefits will be significantly increased by an unprecedented annual average of 8.3%." President Yoon also stated, "We will extend the repayment period for policy funds up to five years and support small business owners with an annual delivery fee of 300,000 won to reduce their operating costs."

He went on to explain that research and development (R&D) investment focusing on three strategic technologies?artificial intelligence (AI), biotechnology, and quantum?will increase from 26.5 trillion won this year to 29.7 trillion won next year. President Yoon said, "We will also put more effort into supporting economic vitality by creating quality jobs and securing growth engines," adding, "We have completely revamped R&D investment to be leading-edge and significantly expanded the scale of support."

"Investment in health and medical care... Establishment of regional essential medical system"

He also promised increased fiscal investment in the health and medical sector. President Yoon emphasized, "We will dramatically increase fiscal support from about 800 billion won this year to 2 trillion won next year to sustain regional and essential medical care and thoroughly prepare for future medical demands." He explained that fiscal resources will be steadily invested focusing on five key areas: expanding necessary medical personnel, providing essential medical services, fostering regional medical care, establishing a safety net for medical accidents, and conducting essential medical research and development (R&D).

President Yoon reiterated his commitment to medical reform, stating, "Including 10 trillion won in fiscal investment over the next five years, we will invest more than 20 trillion won in total to establish a regional essential medical system that ensures fair accessibility for all citizens regardless of where they live in Korea."

Finally, President Yoon addressed the rapid spread of deepfake videos targeting unspecified masses on social media (SNS), urging, "Relevant authorities should thoroughly investigate and prosecute these digital sex crimes to eradicate them."

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