Moon vows efforts for visible benefits of income-led growth in 2019
South Korean President Moon Jae-in addresses the nation in his first press conference in 2019, televised live, at Cheong Wa Dae, Thursday. Yonhap
President Moon Jae-in sought to defend his embattled income-led growth strategy Thursday, vowing efforts to make "tangible" benefits this year.
While addressing the nation before his first press conference in the new year, the president said the government too is well-aware of difficulties facing Asia's fourth-largest economy but that that is only the more reason the country should continue to push for income-led growth.
"An economic policy shift can be truly frightening. It will take time and may generate controversy," the president said in his nationally broadcast speech.
"However, it is the path that we must take. We will achieve the goal of an innovative, inclusive nation by all means while sufficiently making up for any shortcomings," he said.
The national address was soon followed by a question-and-answer session, attended by some 200 journalists at the presidential office Cheong Wa Dae.
Lee Hae-chan, the head of the ruling Democratic Party of Korea, center, the party floor leader Hong Young-pyo, second from right, and other party members watch the South Korean President Moon Jae-in's speech at the National Assembly, Thursday. Yonhap
Moon's remarks come amid growing concerns that the country's economy may be slowing, partly due to increased costs and job reductions that may have been caused by the very tactic Moon introduced at the start of his presidency in May 2017.
The income-led growth, along with people-oriented growth, seeks to boost the economy by increasing the average income of households and thus their spending.
Under such a notion, the government-led tripartite commission on the minimum wage has hiked the minimum hourly pay rate by nearly 30 percent from 6,470 won in 2017 to 8,350 won this year (US$5.78-$7.46).
The president insisted the problem of fair distribution was not unique to the country and that the rest of the globe was moving in a similar direction to address the issue.
"Economic inequality, also dubbed the 1% versus 99% society or a winner-take-all economy, is not a problem unique to us. It is a common challenge facing the entire world," he said.
Kim Byong-joon, the interim leader of the largest opposition Liberty Korea Party, right, and the party floor leader Na Kyung-won watches the South Korean President Moon Jae-in's televised national address at the National Assembly on Thursday. Yonhap
"The people-centered economy and innovative, inclusive nation being pursued by my administration are precisely in line with such thinking. Our goal is to create an economy in which all prosper together on the basis of a fair economy with a level playing field, where innovative and income-driven growth enable sustainable development," Moon added.
The president acknowledged some shortcomings in the process, especially in creating new jobs.
On Wednesday, the finance ministry reported the country's jobless rate stood at 3.8 percent in 2018, the highest since 2001, while the number of people employed grew only by 97,000 from a year earlier, the lowest on-year gain since 2009.
"My administration is taking this economic situation very seriously. However, I want to emphasize that the hardships we are suffering now are even stronger proof of the need for the people-centered economy," the president said in his nationally televised address.
He vowed to make progress this year.
"This year's objective is to make the people clearly see signs in their own lives that the government's economic policy is heading in the right direction," he said.
Journalists from local media outlets and those from overseas join the question-and-answer session with the South Korean President Moon Jae-in at Cheong Wa Dae's Young Bin Gwan Hall, Thursday. Yonhap
The president also vowed continued and increased efforts to further improve the country's relations with North Korea.
"Peace can drive economic growth. The desire to prosper lies in the people of both South and North Korea," he said.
Moon said the country will also work to resume its economic cooperation with the North, which currently is blocked by various international sanctions placed on the communist state for its past military provocations that included six nuclear tests.
"My administration will cooperate with the international community, including the United States, to resolve the remaining issues (to inter-Korean economic cooperation), such as international sanctions, as soon as possible," Moon said.
Reporters at Cheong Wa Dae's Young Bin Gwan Hall raise their belongings from smartphone to hat and notepad to grab the South Korean President Moon Jae-in's attention during the question-and-answer session on Thursday. Yonhap
Pyongyang's denuclearization
In the question-and-answer session, Moon stressed the need for North Korea to take more concrete and faster denuclearization steps while also highlighting the importance of corresponding measures by the international community to further accelerate the denuclearization process.
"I believe North Korea needs to take practical denuclearization steps more boldly if it wishes to resolve the issue of international sanctions because the issue of international sanctions depends on the speed of North Korea's denuclearization process," the president told the press conference.
"I believe corresponding measures too must be considered to further promote North Korea's denuclearization process," Moon said.
Moon's remarks follow months of apparent debates between the United States and North Korea over who should do what first.
Pyongyang is said to be demanding corresponding measures for the denuclearization steps it has taken so far, while Washington says the North needs to do more.
The South Korean Presidnet Moon Jae-in's national address is televised at Seoul Station, Thursday. Yonhap
Moon said such a gap may stem from years of distrust and hostility.
"I think both sides are aware. North Korea knows it needs to take more concrete denuclearization steps in the end to remove international sanctions, and the U.S. too sees the need for corresponding measures to encourage the North's denuclearization," the president said.
"However, they are asking the other side to act first because they cannot trust each other. I believe that is why the second U.S.-North Korea summit has been delayed until now," he added.
U.S. President Donald Trump and North Korean leader Kim Jong-un met in Singapore in June.
Moon noted the second U.S.-North Korea summit may be imminent, saying Kim's trip to China this week could be an indication of it.
"I believe Chairman Kim's China visit is a sign that the second North Korea-U.S. summit is not far away. China has continued to play a positive role in the process of inter-Korean dialogue, as well as U.S.-North Korea talks," he said. (Yonhap)