Lee to Boost Domestic Demand
By Na Jeong-ju
Staff Reporter
President Lee Myung-bak said Friday that his administration will focus on reviving domestic demand this year in a bid to spur the sagging economy.
``The global economic downturn is expected to continue this year, forcing firms to reduce exports and creating additional downside risks for South Korea, which is heavily dependent on trade for economic growth,'' Lee said during a 90-minute roundtable discussion with panelists, broadcast live nationwide.
``We believe policies expanding fiscal expenditure, maintaining low interest rates and taking preemptive economic measures will spur domestic demand,'' he added.
Reflecting on his first year in office, Lee said the global financial turmoil, which started just before his inauguration last February, had battered the Korean economy.
However, the administration's ``green growth'' policy of developing clean energy sources and low-carbon industries, deregulations and economic stimulus package will help the country tide over the crisis, the CEO-turned-president said.
Lee ruled out criticism that the government's 14-trillion-won venture to develop four major rivers would cause an environmental disaster, saying it will create jobs and help enhance economic growth potential.
The discussion focused on two main themes ― economic revival and social integration. The President unveiled his position on a variety of issues, including North Korea's hostile posture toward the South, and the recent clash between police and protesters in Yongsan over a redevelopment project that left six people dead, including a policeman.
``North Korea should understand only South Korea can help it improve its economic situation,'' Lee said. ``I believe inter-Korean dialogue can be restarted soon if the two Koreas trust each other.''
The comments were in response to the North's announcement Friday that it would no longer honor any political or military agreements reached between Seoul and Pyongyang. Cheong Wa Dae downplayed the threat as a typical North Korean tactic to increase its leverage and said it would respond calmly to the provocation.
Lee noted that the country has made meaningful progress in upgrading relations with the four superpowers surrounding the Korean Peninsula ㅡ the United States, Japan, China and Russia.
``Over the past year, we have achieved a stronger alliance between South Korea and the United States,'' Lee said. ``The North's policy of excluding the South in international negotiations will fail as long as the Korea-U.S. alliance remains strong.''
The dialogue was originally planned for before the Lunar New Year's holiday, but was delayed due to the clash between police and protesters in Yongsan, according to Cheong Wa Dae.
The average viewership of the discussion, aired by SBS TV, stood at only 4.9 percent, being outstripped by entertainment and crime investigation programs on other broadcast channels, TNS Media Korea said.