Moon asks Assembly to support growth policy
President Moon Jae-in delivers his speech on the government's 2019 budget proposal during a plenary session at the National Assembly, Thursday. Yonhap
President says second NK-US summit 'near at hand'
By Kim Yoo-chul
President Moon Jae-in asked the National Assembly, Thursday, to endorse the government's expansionary budget proposal for next year as Seoul hopes to boost the economy by creating more jobs.
“South Korea achieved 3 percent economic growth last year, but the economy is predicted to expand 2 percent this year retreating from the growth seen in 2017. It's highly likely that this low growth, which began many years ago, will continue,” Moon said in his address to the Assembly.
The protectionist policies of developed economies including the United States, escalating trade friction between Beijing and Washington, and gradual U.S. rate hikes are threatening the growth of Asia's fourth-biggest economy, according to the President.
“Now is the time to initiate more active fiscal plans to take on bigger downside risks stemming from external factors, and structural issues such as the low birthrate and labor market weakness,” Moon said.
The government plans to spend 470.5 trillion won ($422 billion) in 2019, an increase of 9.7 percent from this year. President Moon said more of the fiscal spending will be focused on strengthening social welfare programs for the have-nots and social safety systems in order to achieve a more inclusive society.
Job creation and helping citizens increase their household incomes are still the government's top economic priorities, said the President. The government will allocate 23.5 trillion won next year to create more jobs, up 22 percent from this year.
“The government will push forward with the three economic policy priorities _ income-led and innovation-driven growth, and fair competition _ in 2019. Achieving a complete paradigm shift will take time as this issue is more about changes in the country's economic DNA and social structure. South Korea can't go back,” Moon said.
Regarding North Korea, the President noted that Kim Jong-un is planning summits with leaders of China, Russia and Japan as he steps up efforts to get sanctions on his country eased four months after meeting with U.S. President Donald Trump.
“Kim Jong-un will visit Seoul soon. A second summit between him and Trump is also near at hand. Kim may meet Japanese Prime Minister Shinzo Abe, and Chinese President Xi Jinping may soon visit Pyongyang.”
Moon said he wants to win more backing from the Assembly for the ongoing peace process on the Korean Peninsula. “If the government wins backing from the Assembly, then that will be a huge plus and clearly provide an extra impetus to advance denuclearization talks.”
The President said earlier that Kim told him he would visit Seoul within this year when they met in Pyongyang in September. However, the visit may be delayed because of stalled denuclearization talks between Pyongyang and Washington.
“Based on mutual trust and understanding, the two Koreas and the United States can achieve complete denuclearization and lasting peace. This is an opportunity that South Korea should not miss,” Moon said.