President Lee cites ‘growth’ 36 times in budget address: “Competition must not become a war”

[Financial News] President Lee Jae-myung put ‘growth,’ ‘support’ and ‘investment’ at the center of his address to the National Assembly on the 2027 budget proposal on the 2nd. His plan is to connect the gains from economic recovery to people’s incomes and jobs, and broaden opportunities for young people and local areas to grow. He said the government would use 820.9 trillion won in fiscal resources—up 12.8% from this year—to make stabilizing livelihoods and reducing disparities the foundation for sustained growth, and to support an economic leap through investment in future industries.
At a pre-meeting with leaders of the ruling and opposition parties, President Lee also explained the direction of the budget proposal, stressing the need to invest in the future in response to the People Power Party’s argument that debt repayment should come first. He urged politicians to engage in reasonable competition and cooperation, saying, “Competing is good, but competition must not become a war.”
In his address that day, President Lee mentioned ‘growth’ 36 times and ‘support’ and ‘investment’ 24 times each. ‘People’ appeared 23 times, ‘future’ 16 times and ‘livelihoods’ nine times. Among policy targets, he referred to ‘local areas’ 15 times, and ‘regions’ and ‘young people’ nine times each.
While citing a 3.8% growth rate in the first half of the year and the possibility of annual exports reaching $1 trillion, President Lee also identified young people’s difficulties finding jobs, the struggles of small business owners and the slow recovery of regional economies as outstanding challenges. He said, “It is time for us to answer this weighty question: What good is growth if my life does not improve?” Analysts say he presented connecting improvements in macroeconomic indicators to changes in people’s everyday lives as a challenge for future fiscal management.
In outlining the details of the budget proposal that day, President Lee stressed changes to how welfare policies are delivered, alongside increased support. Major social security benefits will shift from an application-based system to automatic payments. Support for marriage, childbirth and child-rearing will also be expanded, with a marriage grant of 1 million won for newlyweds and a Child Welcome Grant of up to 20 million won upon childbirth.
The government will also provide anchor companies making large-scale investments in local areas with up to 50% of their facility investment costs, and pursue tuition support for national universities outside the capital region and the establishment of a special account for essential regional medical care. It will invest 21.3 trillion won in the 3 Major Mega-Projects and artificial intelligence (AI) as part of its support for future industries. The research and development (R&D) budget will also rise to 39.5 trillion won to help secure the next generation of growth engines.
The defense budget was set at 73.3 trillion won, up 8.2% from this year. President Lee said, “We will secure key military capabilities without setbacks, including those needed for the early recovery of wartime operational control, nuclear-powered submarines and the KAI KF-21 Boramae. We will also build integrated manned-unmanned systems based on AI, robots and drones, and rapidly transform our forces into a smart, elite military.”
Ahead of his address to the National Assembly that day, President Lee explained how fiscal capacity should be used at a pre-meeting attended by National Assembly Speaker Cho Jung-sik, leaders of the ruling and opposition parties, and heads of major constitutional institutions. In response to the People Power Party’s view that debt repayment should come first, he stressed the need for investment to build a foundation for long-term growth.
President Lee said, “People Power Party lawmakers say we should use the additional fiscal resources to pay off debt. That is reasonable in some respects.” He added, “But if we judge that this would help lay the groundwork for sustained growth when we look to the future, I think it is right to invest for the future.” As the meeting went off the record and reporters were leaving, President Lee also remarked, “Is the People Power Party saying the problem isn’t the content of the [budget proposal], but that we should pay off the debt?”
Speaker Cho said, “We will scrutinize the proposal carefully to ensure the funds are put to good use for people’s lives and the future of the Republic of Korea,” adding, “The ruling and opposition parties will do their utmost to ensure it is passed within the statutory deadline set by the Constitution.” He went on to stress, “There can be no division between the ruling and opposition parties when it comes to people’s livelihoods and the national interest.”
At the meeting, President Lee shook hands with People Power Party leader Jang Dong-hyeok and said, “Good to see you. I see you on TV often.” He asked Chief Justice Cho Hee-dae how he was doing.
At one point during the address that day, it was briefly interrupted when People Power Party lawmakers objected as President Lee explained the issuance of government bonds. President Lee said, “I’m speaking right now, and you keep interrupting. It would be good if you offered a specific opinion,” then asked whether he could continue. The address resumed after Democratic Party lawmakers responded, “Yes.”
Earlier that day, dozens of People Power Party lawmakers gathered at the main building entrance before President Lee arrived at the National Assembly, holding placards bearing slogans such as “1,400 trillion won in national debt + 126 trillion won future debt-pile fund” and chanting criticisms of the national debt and court cases, among other issues.
[email protected] Choi Jong-geun, Jiwon Song Reporter