Yoon: "Previous Government Increased National Debt by 400 Trillion Won... Need to Improve Fiscal Spending Efficiency" (Comprehensive Report 2)

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 is the fundamental principle of finance that the government has upheld while preparing 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 operations hindered"

He explained that since the government's establishment in 1948 until 2017, the accumulated national debt was 660 trillion won over 69 years, but it surged to 1,076 trillion won in just five years, creating a challenging environment for government operations. He expressed particular concern that due to aging population, substantial 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 implemented a total expenditure restructuring of 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 approach, 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, "Cabinet members and government officials should clearly 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 is speaking at the Cabinet meeting held on the 27th at the Yongsan Presidential Office Building in Seoul. [Image source=Yonhap News]

Furthermore, President Yoon stressed 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 stated, "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 where urgent help is needed due to sudden child illness, 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 policy fund repayment periods up to five years and support small business owners with an annual delivery fee of 300,000 won to reduce their operating costs."

He explained that research and development (R&D) fiscal 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 pioneering and significantly expanded the support scale."

"Investment in health and medical care... Establishing regional essential medical systems"

He promised increased fiscal investment in the health and medical sector. President Yoon emphasized, "We will drastically increase fiscal support from about 800 billion won this year to 2 trillion won next year to revitalize regional and essential medical care and thoroughly prepare for future medical demands." He explained that fiscal investment will be steadily made focusing on five key areas: expanding necessary medical personnel, providing essential medical services, fostering regional medical care, establishing a medical accident safety net, and essential medical 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 the Republic of Korea."

Additionally, he urged, "Recently, deepfake videos targeting unspecified masses are rapidly spreading through social media (SNS). I ask the relevant authorities to thoroughly investigate and eradicate such digital sex crimes."

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

In his closing remarks at the Cabinet meeting, President Yoon said, "The Yoon Suk-yeol administration is a government for the local era," emphasizing, "To establish living conditions in local areas, education and medical systems must be in place." He mentioned, "The reason our citizens work hard is not only for themselves but also to ensure their children succeed," and stressed the need for quality educational conditions, urging active educational reform.

He also explained that efforts have been devoted to balanced regional development, including the integration of early childhood education and care management systems (yubotonghap), digital education utilizing artificial intelligence (AI), university education linked with local industries, and the Glocal University initiative, which supports 30 universities with 100 billion won each over five years. He noted that financial and administrative authority is boldly delegated to local governments in this initiative.

Yoon: "We will not be shaken by fake news or false frames"

He added, "Who would want to live in local areas if they cannot properly access hospitals when suffering from serious illnesses?" and stated, "Without education and medical reform, there is no future for the Republic of Korea." He remarked, "Utilizing all national land and regions to the fullest is essential for the overall competitiveness of our country," and said, "We need to consider how to remodel the entire nation."

In particular, he emphasized again that the government will not be swayed by popularity, agitation, fake news, or false frames, stating, "Measures such as inheritance tax relief, corporate value-up, deregulation, and greenbelt release are all aimed at strengthening the middle class."

Finally, President Yoon said, "Cabinet members face problems to the extent that they cannot properly handle state affairs due to fatigue and stress from attending the National Assembly, and directors and section chiefs also struggle to support this," urging, "In such times, cabinet members must cultivate their expertise as senior public officials, maintain dignity, and show unwavering composure so that employees in each ministry can endure well."

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