Yoon: "Will Ease Regulations More Boldly... Targeting $700 Billion in Exports" (Comprehensive)

by Bae Kyunghwan

Published 04 Jan.2024 12:30(KST)

Updated 04 Jan.2024 14:29(KST)

Yoon Begins Ministry Work Reports with the People
"Will Boldly Remove Inconvenient Regulations... Discussion with the People"
On-Site and Livelihood-Focused Governance... 'An Active Government'
"If Unable to Establish Short Selling System, Ban Will Continue"
11 Trillion Won Invested for Price Stability and Small Business Support Package

President Yoon Suk-yeol stated on the 4th, "We will achieve tangible results that the public can directly feel and grasp, aiming for $700 billion in exports, $35 billion in foreign investment, and $57 billion in overseas orders." Since the government and businesses worked as one team last year to overcome the economic crisis through exports, the intention is to manage public livelihood this year based on export expansion. To this end, President Yoon promised, "We will boldly remove regulations that cause inconvenience to corporate activities and discomfort to the people."

On the morning of the same day, President Yoon presided over the first public livelihood discussion forum with citizens at the Small and Medium Business Human Resources Development Institute in Yongin, Gyeonggi Province, revealing these economic targets while saying, "Although regulatory reform has been pursued since the government’s inauguration, this year we will remove regulations more boldly and decisively."

This year’s ministry work reports are planned to be conducted in a way that the government and the public discuss specific issues and devise alternatives. This reflects the field- and livelihood-centered state administration policy emphasized by President Yoon since the second half of last year. President Yoon also announced, "To become a government that listens to the voices of the people and swiftly resolves problems, I will visit livelihood sites across the country and hold thematic discussions with the public."

President Yoon Suk-yeol is delivering opening remarks at the Ministry of Economy and Finance's 2024 New Year work report held in the form of a "Public Discussion on Livelihoods with the People" at the Small and Medium Business Human Resources Development Institute in Yongin-si, Gyeonggi-do on the 4th.
[Photo by Yonhap News]

In particular, President Yoon set goals of ▲$700 billion in exports ▲$35 billion in foreign investment ▲$57 billion in overseas orders, confidently stating, "We will deliver tangible results." Earlier, on the 2nd, at the 'New Year Meeting with the Business Community,' he said, "Exports will increase, leading economic recovery and growth," and expressed the intention to keep the inflation rate at about half the average of the Organisation for Economic Co-operation and Development (OECD).

He also expressed the government’s commitment to price management. President Yoon said, "Prices will maintain a stable level around 1%, and the employment rate, which recorded an all-time high last year, is expected to improve further," emphasizing, "Above all, it is crucial to carefully manage livelihoods so that the public can truly feel these results."

To this end, the government plans to provide budget support worth 11 trillion won for the agriculture, fisheries, and energy sectors in the first half of the year to stabilize prices in the 2% range. This is a strategy to put out urgent fires by injecting a large-scale budget amid a situation where the annual consumer price index has soared over 3% for two consecutive years. Alongside this, financial support for small business owners and self-employed individuals and measures to revitalize the local economy will also be pursued.

President Yoon stressed, "We must provide support in terms of financial accessibility and tax administration to ease the burden on marginal small business owners and small and medium enterprises." This means the government and the banking sector will work together to reduce their financial burdens. It is interpreted as a call to realize the '2 trillion won plus alpha' scale win-win financial support plan proposed by the banking sector in response to demands from financial authorities and political circles for increased social responsibility. Regarding the ban on short selling, he said, "There is speculation that the ban will be lifted after the election since it is prohibited until June, but that will never happen," adding, "It will only be lifted when an electronic system that completely eliminates side effects is firmly established. If not, the ban will continue."

In line with this, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok unveiled policy directions to achieve a 'vibrant livelihood economy.' The core points are ▲price stabilization for livelihood economy recovery ▲burden relief for small business owners ▲measures to activate domestic demand, along with deregulation and structural reform plans to enhance the vitality of the Korean economy. First, a total budget of 11 trillion won will be poured into the agriculture, fisheries, and energy sectors in the first half of the year. This is based on the judgment that the burden on businesses and households could spread as the inflation rate has exceeded 3% for two consecutive years for the first time in 19 years. This year, public utility fees such as electricity and gas rose at the largest rate ever, and living costs such as fresh food exceeded average levels, increasing the burden on ordinary citizens.

For small business owners and self-employed individuals, the government will implement the 'Three Major Support Packages for Small Business Owners' to reduce electricity bills, interest costs, and tax burdens. This is a detailed measure of the 'Financial Burden Relief for Small Business Owners and Self-Employed' announced by President Yoon at the New Year Meeting with the Business Community on the 2nd. At that time, President Yoon promised, "The government and the banking sector will join forces to reduce the financial burden on small business owners and self-employed individuals so that we can coexist."

Customized support measures will also be implemented for regions experiencing population decline. Considering local economic revitalization, this is planned as the 'Three-Project Revival Plan for Population Declining Areas,' including housing purchase incentives, tourism promotion, and foreigner inflow stimulation.

On this day, President Yoon repeatedly emphasized 'effectiveness' to each ministry. The intention is that policies should be realized in a way that the public can feel, beyond mere policy formulation and review. President Yoon added, "The speed of policy is above all important, and the government must move beyond review to action to solve problems." He also pointed out, "If macro indicators are good but people still do not feel it, it means that the careful and meticulous execution of policies in the field is somewhat lacking."

President Yoon also freely exchanged opinions with citizens from various sectors. Small business owners, housewives, and youth participants expressed the need to ease burdens such as prolonged high interest rates and high prices that have increased living costs, while small and medium business owners and individual investors emphasized the need to promote consumption and investment. Ministers of related departments explained the current status and plans of policies related to the public’s opinions.

President Yoon decided that upcoming ministry work reports will also be conducted through discussions with citizens and experts at various policy sites. These will continue for more than 10 sessions covering topics such as ▲housing ▲jobs ▲small and medium enterprises ▲public safety ▲care ▲transportation ▲medical reform ▲media policy ▲low birthrate measures ▲energy policy. The venues for the discussion forums will be held at policy sites related to the respective topics. The second forum, scheduled for the 10th of this month, will focus on 'housing' and be held in an area slated for redevelopment of an aging new town. According to the presidential office, subsequent venues are being considered based on topics, including industrial complexes, youth startup spaces, universities, planned metropolitan transportation facility projects, and military bases with soldiers.