By Na Jeong-ju
Staff Reporter
President Lee Myung-bak said Tuesday that his administration will cut its 2008 budget by 10 percent to offset planned tax reductions.
He also ruled out any possibility of a 1997-style financial crisis and indicated his government would provide incentives to companies converting irregular workers into regular employees. He said the government would consider providing tax incentives to companies that reduce their number of irregular employees.
Lee made these and other remarks in a 100-minute ``Talk With the President'' broadcast live from KBS Hall.
He also defended the country's top economic policymaker from accusations that his team failed to deal properly with external negatives and that their alleged policy failures put the economy into deeper trouble.
Lee has faced rising calls to overhaul the economic control tower led by Strategy and Finance Minister Kang Man-soo, one of the key architects of his growth-oriented policies.
``I trust Kang and back his policy,'' Lee said during the meeting. ``It is not a good option to change top policymakers just because the situation has worsened. The Korean economy is currently exposed to greater external risks than in the past, and this is not his fault.''
Lee's backing of the minister came amid rising calls from opposition parties here for Kang to resign to take responsibility for a growth-first policy platform and a misguided foreign exchange policy amid a slumping economy.
``Only a few months have passed since Kang began his job. We need to give him more time to prove his ability. He experienced a rough start, but is now doing well,'' Lee said.
The meeting largely focused on bread-and-butter issues, and addressing public concerns about inflation and unstable financial markets.
Lee, elected on pledges to revitalize the economy, said the country is experiencing difficult times due to external risks, but will get back on track soon.
``I will never forget the pledges I made. I will fulfill the promises without fail,'' Lee said.
He also called for national unity to overcome external obstacles.
``The next five years are a crucial period for this country. It will set the direction of the Korean economy for the next five decades,'' the President said. ``We must end internal conflicts and put our strengths and wisdom together to overcome challenges, such as high oil prices, the won's steep fall against the dollar and the sluggish economy.''
Regarding North Korea, he expressed the hope that senior citizens whose birth places were there would be able to meet their separated family members through mutual visits.
Lee also spoke of his low approval rating ― he won the presidential election by the largest margin in Korean history, but suffered a steep fall in popularity to below 20 percent in April and May due to street protests over the resumption of American beef imports.
Lee attributed the fall to his ``immature and hurried response'' to the beef issue.
``I and the administration have learned a lot over the past six months,'' he said. ``The country was jolted by demonstrations against the government's resumption of the imports, and a global economic slump has changed the economic landscape for the country.''
The President also stressed that he will get tough with all lawbreakers, including violent demonstrators.
Lee said he will continue pursuing ``pragmatic diplomacy'' to maximize national interests in trade with the United States, Japan, China and other countries, while making efforts to strengthen the alliance with the U.S.
``I will try to deal with countries based on the principle of national interest,'' Lee said. ``I will strengthen economic ties with our allies while developing relations with other countries.''
This is the first time Lee has held an open discussion with the public since taking office on Feb. 25.
Originally, he planned to hold a session in early June on the occasion of his 100 days in office, but postponed it due to the protests against the resumption of beef imports.
``The meeting was a good opportunity for Lee to listen to ordinary people and reflect their suggestions in state policies,'' a presidential spokesman said.