President Lee: “We must take Europe as a cautionary example and pursue sustainable growth ... provide fiscal support for housing starts”

[Financial News] President Lee Jae Myung said on the 27th, “Large-scale protests have recently broken out in several European countries, causing social turmoil and conflict,” adding, “We, too, should take the situation in Europe as a cautionary lesson.”
In opening remarks at a State Council meeting he chaired at Cheong Wa Dae that day, President Lee emphasized, “Although circumstances differ somewhat from country to country, many experts point to the hardship people face from fuel costs and high prices, a stagnant economy, and accumulated inequality as factors behind the difficulties Europe is experiencing.”
He continued, “The biggest and most fundamental cause is ultimately low growth,” noting that “as low growth persists, youth unemployment and polarization worsen, and the fiscal foundation weakens, shaking the stability of society as a whole to its roots.”
He added, “South Korea has achieved very impressive results based on economic indicators alone, but the recovery of people’s livelihoods is still slow, and disparities in income, assets, jobs, and other areas persist,” noting that “young people are also facing great difficulties because of the overall shortage of opportunities.”
He urged, “Sustainable growth is ultimately crucial to resolving these problems. We must use our expanded fiscal capacity to increase investment in advanced industries, foster domestic demand, and actively deploy policy measures that allow people to feel the recovery of their livelihoods firsthand.”
He also predicted, “If this builds a strong foundation for growth, an expanding economy will stabilize the debt ratio and strengthen public finances, laying the groundwork for sustainable growth.”
President Lee added, “It is very important to examine cases abroad and draw lessons from them, but we must guard against exaggerating any one aspect and twisting it to fit a preconceived conclusion.”
He also noted that “this year’s second-quarter current account surplus ranked second in the world and was larger than the combined surpluses of Germany and Japan, both global manufacturing powerhouses.” However, he said, “Although this is historic, we must not become complacent or satisfied,” urging State Council members to step up efforts to develop a national growth strategy and secure new growth drivers.
President Lee also highlighted the government’s achievements in housing supply. In particular, he said, “We need to speed up public projects that are lagging in execution and raise housing starts as much as possible,” adding, “Housing supply is important in itself and can also help revive the sluggish construction sector, so please consider fiscal support as well as national-level credit support.”
Meanwhile, President Lee instructed officials to actively promote the Korea Grand Festival. The Korea Grand Festival he referred to is a large-scale government discount event, starting on the 29th, to encourage consumption of manufactured goods, agricultural, livestock and fishery products, tourism products, and more.
President Lee added, “We should also pursue effective reductions in living costs to bolster people’s capacity to consume. We have already made considerable efforts to stabilize prices, but we need to develop and implement bolder policies.”
[email protected] Seong Seok-woo Reporter