Kim Yong-beom: "The center of government must shift... It is time to turn the power of growth into better lives and more opportunities for the public"

[Financial News] Kim Yong-beom, the Chief Presidential Secretary for Policy at Cheong Wa Dae, said that as the economic recovery has begun in earnest, the focus of state affairs should now shift from building a foundation for growth to improving public perception and expanding opportunities. He said that after concentrating on reviving growth through Artificial Intelligence (AI) and semiconductors, policy resources should now be directed toward housing, jobs, education and support for restarting businesses, so that the benefits of growth can improve individual lives.
According to Cheong Wa Dae on the 30th, Kim said in an 'autumn letter' posted on Facebook the previous day, "If the situation has changed, the focus of policy must change as well," adding, "After a period in which we had to devote all our energy to reviving growth, it is now time to bring policy power together so that those gains spread more quickly and evenly into people's daily lives."
Kim also referred to the Bank of Korea (BOK)'s growth forecasts of 3.3% for this year and 2.9% for next year, saying, "We were once again able to confirm that the growth momentum we worked hard to restore is not just a temporary rebound, but is standing on a stronger foundation than expected."
He also said that the improvement in macroeconomic indicators had not been enough to translate into a stronger sense of recovery among the public. Kim noted, "The pace at which the economy's numbers are recovering has not been matched by the pace at which people's lives are improving," citing instability in the stock and real estate markets as well as high living costs. He added, "If many people are still asking, 'So when will my life get better?' then we still have a long way to go."
He particularly pointed to the problem of 'K-shaped growth,' in which the benefits and burdens of growth are distributed unevenly during the AI- and semiconductor-led expansion. Kim said, "Companies, talent and capital that ride the wave of new technology are opening up major opportunities, while workers, small and medium-sized businesses, young people and regional communities on the edge of industrial transition may face the burden of change first."
He stressed, however, that this does not mean revising the existing growth strategy, but moving to a stage where the gains from growth are spread more widely to the public. Kim said, "If the most urgent task until now was to revive the economy and build the foundation for growth, now is the time to connect that growth momentum to people's lives and opportunities," adding, "If the three major mega-projects were investments for a great leap forward in Korea's industries, then we must now also begin investing in the renewed leap forward of each and every citizen."
He proposed easing housing burdens, expanding job and income opportunities, providing income support during industrial transition, broadening education and training for the AI era, and supporting entrepreneurship and business restarts for young people and small business owners.
Kim said, "Distribution and growth are not in conflict," stressing that the fiscal room created by growth should be reinvested in people's capabilities and opportunities, and that this should lead to a virtuous cycle of higher productivity, consumption, entrepreneurship and innovation. He added, "Now is the time to ask not only how much growth we achieved, but also how many people's lives were changed by that growth."
[email protected] Sung Seok-woo Reporter