He suggested the direction of the administration management in the speech. The two important pillars in state affairs this year are security and the economy. He mentioned that his Administration was chosen by the people under the banner of reviving the economy.
He said, "This year, our goals in running the economy are: high economic growth rate of over 5 percent; inflation of under 3 percent; and the creation of decent jobs and improvement in quality of life of middle- and low-income families. Though conditions are difficult, we will work hard so that the economy will be able to grow by at least 5 percent this year following 6 percent growth last year."
In particular, science and technology will be considered the basic platform for the country's take-off toward an advanced economy. This cannot be achieved without the development of our original technology. The government will strengthen its support for science, technology and engineering sectors to achieve such a goal. Under the overall purpose of enhancing our growth potential and future competitiveness, we will increase our investment in R&D. The Presidential Council for Science and Technology will play a pivotal role in such endeavors.
Continuously, he said that the Government will try curbing inflation to under 3% to ensure that growth does not endanger stability. This year, the Government will upgrade the Scientific Prediction System for the harvest of agricultural produce and streamline the retail structure. Through this, the Government will take extra care in controlling prices that impact low-income families.
President Lee also mentioned, " It will continuously implement policies aimed at promoting shared growth between conglomerates and small and medium-sized enterprises." To this end, the Government will create a new business environment where SMEs are recognized as partners for shared growth through close collaboration, thereby equipping them with global competitiveness. Ensuring that SMEs and self-employed businesses are treated properly is instrumental in bolstering competitiveness, creating job opportunities and restoring the middle class. Tasks that crucial in establishing a fair society.
In addition, the Government will accelerate the implementation of national projects aimed at revitalizing the local economies, including: the selection of the location for a science-business belt; relocation of public corporations; and the "Five plus Two Core Tasks."
In addition, the Government will finalize and push ahead with the east, west and south coastal area development plans with a total budget of 75 trillion won. Plans including: turning the East Coast into an energy and tourism belt; the West Coast into an advanced knowledge convergence and integration belt; and the South Coast into a logistics and tourism belt.
About the welfare part, President Lee said, "This year the budget earmarked for welfare is the greatest in our history. In drawing up the budget plan, top priority has been given to three major tasks aimed at giving hope to low-income families. The Government will shoulder all the expenses for nursery care for low- and middle-income families, thereby making sure that women can work without feeling a burden in finding proper care for their babies. The nursery expenses of multicultural families will also be covered in whole by the Government. To lay a firm foundation of hope in our society, the tuition of students attending specialized high schools will also be paid by the Government."
As Korea is the first country to legislate a Framework Act on Green Growth, he said,"This year, we cannot afford to pause in our practical pursuit of becoming a leading nation in green growth. Over the past three years, Korea's export of new and renewable energy has increased seven-fold, and such exports are expected to reach US$40 billion by 2015. In the future, the solar power industry will be nurtured as the semiconductor industry was, and the wind power industry as shipbuilding was. By taking the opportunity of the export to UAE, the government will actively nurture the nuclear power plant as an export industry to cope with the era of climate change." He added that the country will actively respond to climate change by vitalizing green growth financing and the development of green technologies while simultaneously exploring new markets.
"In the past, nations heavily relied on military power, but now they are all out to expand their 'world economic territory' based on FTAs. FTAs are a powerful means for Korea to become a hub nation of international trade. Since international trade occupies 82 percent of its GDP, Korea has to have a national strategy of expanding its global market through FTAs. This is the only way. Since the inauguration of the current Administration, Korea has concluded FTAs with India, the EU and other countries constituting two-thirds of the entire world market."
He continued by saying, "In particular, the FTA with the United States will mark both a symbolic and actual occasion to turn Korea into an international trading hub nation. The automobile industry welcomes speedy ratification of the bilateral agreement. The treaty also gives the country further benefit in the form of a strengthened Korea-U.S. alliance, as well as economic advancement. The Government will carefully but with speed work on free trade negotiations with China and Japan."
Lastly, he mentioned that the Government will pay special attention to expanding the job market for young men and women. With a view to cultivating global leaders, the Government will dispatch some 20,000 young workers overseas. They will be entrusted with helping implement the development agenda and other international activities.
Along with this, the Government plans to reduce the number of subjects tested in the College Scholastic Ability Test in a bid to innovate the school curriculum in such a way as to promote creative instruction in the classroom. Educational reform will be carried out consistently so that college admission is administered autonomously and private education expenses cut down.
