Cabinet in Emergency Mode for Economy
By Na Jeong-ju
Staff Reporter
President Lee Myung-bak said Friday he will shift his administration to emergency mode for economic revival and reform, and expand social safety nets for the unemployed and less fortunate.
In a nationally-televised New Year's address, Lee came up with four state policy goals for the year.
The administration will go into emergency economy rescue mode to fight the economic crisis, implement caring and well-planned programs to take care of ordinary citizens, push for reform to help Korea join the ranks of advanced countries and step up preparations for the future through ``green growth,'' the President said.
Lee said inter-Korean relations should be pushed ``in a mature manner,'' indicating that he won't resume inter-Korean exchanges unless North Korea fully cooperates in multilateral negotiations over denuclearization. He also noted Seoul has achieved closer ties with Washington since his inauguration, citing recent currency swap agreements and entry into the U.S. Visa Waiver Program for South Korean tourists.
He outlined new employment programs for the young, expanded subsidies for college students and emergency support systems for families hit by the financial crisis. He said the government would shoulder living and medical expenses for six months for families suffering from unemployment, or suspension of business losses. Officials in charge will visit the troubled families within a day and take protective measures for those who make appointments by calling 129.
Lee also said 150 public high schools and 50 ``Meister'' high schools will be established for farming towns and small and medium-sized cities.
``Nothing will be achieved if we hesitate in the face of crisis,'' Lee said. ``For the earliest possible eradication of the economic crisis, the administration will shift to emergency economic governance in 2009.''
Cheong Wa Dae said Lee would convene a regular meeting of top economic officials and presidential secretaries to discuss rescue plans.
President Lee appealed to the opposition parties to cooperate on the early passage of pending reform bills, saying, ``Now it is the National Assembly's turn to give support.''
The country has already funneled more than 20 trillion won into banks, making it easier for companies and households to borrow money. The Korea Credit Guarantee Fund and the Kibo Technology Fund will raise their capital to expand support for small and medium-sized enterprises, Lee said.
The government will speed up tax cuts and deregulation, increase job opportunities for the young, cooperate with the business community to boost corporate investment and spur domestic demand by spending more than 60 percent of the state budget in the first half of the year to help South Korea overcome the ongoing crisis as quickly as possible, he said.
Lee also pledged his administration will introduce the Earned Income Tax Credit program this year, through which low-income, working families will receive a subsidy of up to 1.2 million won per month.
Touching on the dismal prospect for the growth in the country's working population, Lee said his administration will carry out drastic reforms in job training and occupational retraining soon in preparation for possible cuts in industrial production.
``We feel responsible for educating adults as we do children,'' Lee said. ``We need to have mid-and long-term plans in anticipation of a super-aging society. We will put a substantial system in place for life-long education and life-long employment.''
Lee also reaffirmed plans to develop new economic growth engines by implementing ``green growth'' strategies.
``We will revitalize the country's four major rivers,'' Lee said. ``It is a multi-purpose project aimed at preventing natural disasters, responding to climate change, preserving the environment, improving water quality and promoting tourism and leisure industries. This is expected to create 280,000 new jobs.''
Lee's speech drew conflicting reviews from the governing and opposition parties.
The Grand National Party hailed Lee's speech as ``inspiring,'' saying the country should join together and back the government's initiatives to overcome the economic difficulties.
The main opposition Democratic Party said President Lee failed to address his past policy failures.
``Lee and his policymakers should be criticized for putting the country in economic trouble. Lee should apologize first,'' the DP said in a statement.