In his first National Assembly state of the union address since taking office on the 26th, President Lee Jae-myung requested the swift passage of the government's supplementary budget proposal, amounting to 30.5 trillion won, stating it is "a catalyst for resolving the economic crisis and drought, and a minimal measure for economic recovery." He particularly referred to the 13 trillion won consumer recovery coupons, noted as "the key welfare of the Lee Jae-myung administration," saying they are "to bolster consumption capacity and support the activation of the domestic market."
In his state of the union address explaining the supplementary budget proposal that morning, President Lee noted, "There is an old saying, 'Timing is everything in the economy.' Now is that time," mentioning that he formed an emergency economy inspection task force on his first day in office as a 'first administrative directive.' He added, "It is important to inject vitality into the domestic market with rapid supplementary budget formation and speedy execution, and I urge the National Assembly to actively cooperate so we do not miss the golden time for economic recovery."
President Lee explained the details of the supplementary budget as follows: ▲ 11.3 trillion won for consumption promotion, ▲ 3.9 trillion won for investment promotion to invigorate the economy, ▲ 5 trillion won for support of small business and vulnerable groups, and ▲ 10.3 trillion won for revenue adjustment.
The second supplementary budget proposal allocates 11.3 trillion won for consumer recovery coupons and incentives. In particular, individuals will receive consumer coupons worth between 150,000 won and 520,000 won, depending on income level and region. Additionally, 600 billion won of national funds will be injected into the local love gift certificate budget to increase the discount rate, and the issuance scale will be expanded by an additional 8 trillion won.
President Lee explained that "Consumer coupons will be distributed universally to all citizens, but with more robust tailored support for the vulnerable and areas suffering depopulation," stating that "in accordance with the new government's philosophy of providing more support to local areas, more national funds have been allocated to local governments."
Regarding the investment promotion budget, he said, "It includes early investment in executables in social overhead capital, such as railroads, roads, and ports, and providing a total of 54 trillion won in liquidity to revive the stagnant real estate project financing market," adding, "We aim to revive the growth engine of Korea by expanding investments related to AI and renewable energy and providing 13 trillion won in funding through venture and small and medium enterprises' fund contributions."
President Lee specifically noted regarding his election pledge of 'forgiving COVID-19 debts' that "extraordinary measures are needed for small businesses, self-employed individuals, and vulnerable groups who have suffered severe hardships from the pandemic crisis to the illegal emergency martial law of 12.3," stating, "The new government will write off long-term delinquent debts of 1.13 million vulnerable borrowers who are unable to repay their debts." He also said that a 'bad bank' system would be launched to forgive debts under 50 million won that have been overdue for over seven years.
The supplementary budget proposal reflects an adjustment of 10.3 trillion won in revenue. This means correcting this year's national tax revenue budget from the previous 382.4 trillion won to 372.1 trillion won, reducing it by 10.3 trillion won. The government explained that this action reflects concerns that revenue shortfalls could reach 80 trillion won in 2023 and 2024, with significant revenue shortages expected this year.
President Lee stated, "This is a decision to respect fiscal stability and the National Assembly's authority to review and finalize the budget," adding, "If we neglect the revenue shortfall, the government will have no choice but to process a large-scale budget surplus at the end of the year, and support for local government finance will also decrease." He continued, "Even in the already prepared budget reflected in the supplementary budget, we will execute only the necessary projects in the right place."
◇Mention of growth 12 times... Asking the opposition for 'any budget opinions anytime'
"Growth" was mentioned 12 times in that day's state of the union address. Following the presentation of "growth" as the number one task during the presidential election, this emphasizes the active role of finance and a focus on corporations' economic growth. This clearly differentiates itself from the previous progressive stance that traditionally emphasized "distribution."
President Lee stated, "To alleviate polarization and inequality, we must open the door to fair growth and move toward 'a world where everyone can live well together.'" He also noted, "If we restore the transparency and fairness of the capital market, the economy will revive, and corporations can properly grow, creating a virtuous cycle that could lead to a KOSPI of 5,000."
President Lee also made an impromptu remark not included in the prepared speech directed at the opposition People Power Party members. He said, "If there is anything the government has not included in the supplementary budget, please do not hesitate to share your opinions during the National Assembly's budget review process," adding, "Especially to our opposition members, if there are necessary budget items, although you may focus on cuts, please feel free to propose additional items whenever you wish." He concluded by expressing, "I sincerely appreciate the People Power Party members for joining us in difficult times."
After completing his speech, President Lee shook hands with opposition members, starting with Jin Jong-oh, a member of the People Power Party, followed by Lee Won-sik, the Speaker of the National Assembly. He was seen laughing and playfully tapping the shoulder of Kweon Seong-dong, the former floor leader, behind the main assembly hall, who is an alumnus from the Central University College of Law.