South Korea’s Lee vows to turn complex global crises into opportunities

ISTANBUL

South Korea's President Lee Jae Myung on Thursday pledged to turn the ongoing "unprecedented" protectionism and security uncertainties into opportunities to maximize the national interest, the Yonhap news agency reported.

"The world has entered an unprecedented major turning point in the global economy and security environment," Lee said, citing geopolitical tensions, growing rivalry over technological hegemony, fractured global supply chains and widespread protectionism.

"Now is the time when a strategic approach is more necessary than ever to address global uncertainties and external risks," he added.

Affirming his commitment to strengthening cooperation with Japan and China, based on the South Korea-US alliance, Lee renewed his pledge to proactively respond to shifts in the global trade environment to help South Korean firms compete more effectively.

Separately, in his first budget speech at the parliament, Lee said that reviving people's livelihoods is his administration's "most pressing task," emphasizing the necessity of the government's 30.5 trillion won ($22.5 billion) extra budget proposal, according to the Korea Herald.

Lee's extra budget proposal is the second this year and the first since he took office and requires the National Assembly's approval.

"Rebuilding the collapsed economy and reviving people's livelihoods is the most pressing task we must tackle," he said.

"If the current low growth continues, we will fall into a vicious cycle where the door of opportunity narrows and competition and conflict intensify," he further said.

The proposed budget includes planned 13 trillion won worth of cash grants to every South Korean citizen and measure to revive the domestic economy amid fears of recession with more spending.

Lee suggested an additional budget of 3.9 trillion won for increasing investment in infrastructure, construction, artificial intelligence, renewable energy and startups, as well as spending 5 trillion won to clear debt of some 1.1 million people who can't pay them.

"The reason why the government that came into being without a transition team rushed to come up with the extra budget plan is that the economy is in a dire situation," Lee said, adding that "fiscal austerity at a time of economic crisis would be irresponsible and would go against the purpose of the government."