President Lee unveils blueprint for long-term economic growth

President Lee Jae Myung has pledged to set up a strategic fund to support investments in areas such as artificial intelligence and renewable energy.

Our Yoon Jung-min reports from the Presidential Office.

The emergency meeting on economic affairs will shift to one seeking growth engines in the long term, as the fully-fledged new government takes shape.

That was according to President Lee Jae Myung on Wednesday, as he presided over the third emergency economic meeting at his office, hinting at where the economy is headed for the next five years.

"Our government of people's sovereignty will be a pragmatic, market-oriented government. It will be the government that supports and encourages business activities to create opportunities and engines for growth."

Lee promised to create a fund of over 100-trillion won, worth some 72-billion U.S. dollars, which the people and corporations take part in, to make investments in areas deemed strategically important, such as AI and renewable energy.

The liberal-leaning leader also vowed to cut red tape to encourage businesses in Korea and launch another task force to revamp penalties too heavy on firms.

"To ensure that corporate activities are not intimidated by excessive economic punishments, the government will immediately launch a task force to rationalize economic punishments. It will be discussed at the upcoming National Assembly regular session to set up specific targets, like revamping 30% within a year."

He was pointing to a case where "breach of trust" is abused to place penalties too heavy on corporations, raising questions about whether it fits into a "global standard."

Another pillar for growth was on achieving balanced regional growth, for a country where too much concentration on its capital area has often been cited as a factor that threatens the sustainability of the nation.

Lee vowed to draw up rules and policies to make sure resources are used in an "efficient way," noting as an example his consumption voucher policy that favors people living in rural areas over those in the capital.

Also hinted at was aggressive belt-tightening in fiscal policy so that more funds can be used for "key" policies.

"With regard to next year's budget, President Lee ordered a bold restructuring of budgets that yield very little or are used routinely."

Details of the new government's growth strategy will be unveiled in August, based on what was discussed on Wednesday, apparently taking into account not-so-favorable conditions, such as low growth and higher prices.

Yoon Jung-min, Arirang News.