Yoon "Plans to Increase R&D Investment During Term... Will Address What the People Want" (Comprehensive Report 2)

President Yoon Suk-yeol stated on the 4th, "Research and development (R&D) investments funded by taxpayers' money will be boldly reformed to enhance the national economy," and pledged to increase investments during his term. He also set a target of $700 billion in exports this year to continue the economic recovery momentum and emphasized that the government will visit the field to reflect the demands of the people so that they can feel the improving economic situation firsthand.

President Yoon made these remarks during the first government work report and the first public livelihood discussion held at the Human Resources Development Institute in Yongin, Gyeonggi Province, when the representative of an automobile parts company from Changwon requested an expansion of the R&D budget.

The government faced controversy last year when it attempted to restructure the R&D budget, which was seen as being managed inefficiently. Following criticism from opposition parties and growing dissatisfaction from the research community, the budget was increased by about 600 billion won. However, compared to last year's main R&D budget (31.1 trillion won), this year's budget is reduced by 4.6 trillion won (14.7%).

President Yoon also reiterated the government's commitment to policies closely aligned with public livelihood. In his closing remarks at the livelihood discussion, he said, "I appreciate the vivid opinions shared that reflect the real lives of the people," adding, "Today was the first work report covering general topics, and going forward, we will break down departmental barriers and hold discussions with the public on specific themes such as housing, healthcare, and caregiving to promptly address the most desired improvements."

He continued, "The government's role is twofold: first, to maintain a system that can sustain national economic development, and second, to solve the difficulties felt by the people," noting, "The free market economic system is the foundation for our economy, respecting not only individual freedom but also the freedom of collective choice."

He further emphasized, "From this perspective, we plan to fundamentally review and drastically improve regulations that hinder the freedom and choices of the people," and added, "Resolving the difficulties of the people promptly on the ground also promotes their freedom and respects their choices."

Earlier, in his opening remarks, President Yoon emphasized, "We aim to achieve $700 billion in exports, $35 billion in foreign investment, and $57 billion in overseas orders, delivering tangible results that the people can directly feel," and promised, "We will boldly remove regulations that hinder business activities and cause inconvenience to the people."

[Image source=Yonhap News]

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This year's departmental work reports are planned as forums where the government and the public discuss specific issues and devise alternatives. This reflects the field- and livelihood-centered governance approach 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 solves problems, we will visit livelihood sites across the country and hold thematic discussions with the public."

He expressed the government's determination to manage inflation. President Yoon said, "Inflation is expected to maintain a stable level around 1%, and the employment rate, which reached a record high last year, is projected to improve further," emphasizing, "Above all, it is crucial to carefully manage livelihood so that the people can tangibly feel these results."

To this end, the government plans to allocate a budget of 11 trillion won to support the agriculture, fisheries, and energy sectors in the first half of the year to stabilize inflation in the 2% range. This large-scale budget injection aims to quickly address urgent issues amid consumer prices soaring over 3% for two consecutive years. Additionally, financial support for small business owners and self-employed individuals and measures to revitalize local economies will be pursued.

President Yoon stressed, "We must provide support in terms of financial accessibility and tax administration to alleviate the burdens on marginal small business owners and small and medium-sized enterprises." This indicates that the government and the banking sector will work together to ease their financial burdens, reflecting the banking sector's response to demands from financial authorities and political circles for enhanced social responsibility through a '2 trillion won plus alpha' scale win-win financial support plan. Regarding the ban on short selling, he stated, "Although some predict the ban will be lifted after the election in June, that will never happen," adding, "The ban will only be lifted once 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 focuses are ▲price stabilization for economic recovery, ▲alleviation of burdens on small business owners, and ▲measures to stimulate domestic demand, including deregulation and structural reforms to boost economic vitality. 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. Public utility fees such as electricity and gas have risen at record levels this year, and living costs for fresh foods and other essentials have exceeded average levels, increasing the burden on ordinary citizens.

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

At the discussion, Commissioner Kim Chang-gi of the National Tax Service explained, "We plan to selectively extend the payment deadlines for about 1.2 million people in sectors sensitive to economic fluctuations such as construction, manufacturing, and small-scale self-employed businesses in food service, lodging, and retail, by two months for value-added tax and three months for corporate tax. Even if they do not fall under these categories, those struggling to pay taxes due to business difficulties can extend the payment deadline up to nine months. For those who have already defaulted on taxes, we are also considering a one-year grace period for seizure and sale procedures." The government also mentioned that it is reviewing the deletion of delinquency records to prevent disadvantages for loan defaulters.

Customized support measures will also be implemented for regions experiencing population decline. These are planned as the 'Three Revival Projects for Population Declining Areas,' including housing purchase incentives, tourism promotion, and attracting foreigners, considering local economic revitalization.

[Image source=Yonhap News]

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On this day, President Yoon repeatedly emphasized 'effectiveness' to each ministry. The intention is that policies should not only be formulated and reviewed but also realized in ways that the public can feel. President Yoon added, "The speed of policy implementation is paramount, 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 the effects, it means that the careful and meticulous execution of policies on the ground is somewhat lacking."

President Yoon freely exchanged opinions with people from various sectors. Small business owners, housewives, and youth participants expressed the need to alleviate burdens such as prolonged high interest rates and high living costs, while small and medium-sized business owners and individual investors emphasized the need to promote consumption and investment. Ministers from related departments explained the current status and plans of policies related to the public's opinions.

President Yoon decided that future departmental work reports will also be conducted through discussions with the public and experts at various policy sites. These will cover more than ten sessions on topics including ▲housing, ▲jobs, ▲small and medium enterprises, ▲public safety, ▲caregiving, ▲transportation, ▲medical reform, ▲media policy, ▲low birthrate measures, and ▲energy policy. The discussion venues will be held at policy sites related to each theme. The second discussion, scheduled for the 10th of this month on the theme of 'housing,' will be held in an area slated for redevelopment of an aging new town. According to the presidential office, future venues under different themes are being considered at industrial complexes, youth startup spaces, universities, planned metropolitan transportation projects, and military bases with soldiers.

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