Innovation as a Solution

The inequitable distribution of economic benefits and a sluggish job market are the biggest headaches for both the government and the people, and President Moon acknowledged that resolving these issues are his administration¡¯s most urgent and pressing tasks this year.

He proposed ¡°innovative growth¡± as a solution to Korea¡¯s deep-rooted economic inequality and polarization as well as the employment crisis. He said innovation will help not only revive existing industries but also foster new ones that could develop into new growth engines.

President Moon pledged to bolster investment in new technologies like artificial intelligence (AI) and the hydrogen economy this year as well as throughout his term, which ends in 2022. More investment will go toward building factories, cities and farms that are smart and innovative, he added.

Blaming the poor performance of the nation¡¯s flagship sector of manufacturing, especially in cars and shipbuilding, for the sluggish job market, the president promised to innovate the sector by applying smart technologies to regain manufacturing competitiveness.

Building Peace on the Peninsula

Last year saw major progress in inter-Korean relations, as seen in the holding of three inter-Korean summits to bilateral projects in many areas such as sports and railroad construction.

President Moon said he will continue and speed up the peace-building process on the Korean Peninsula. He predicted more positive outcomes on this issue, calling North Korean leader Kim Jong Un¡¯s January visit to China an optimistic sign that the much-anticipated second meeting between the North and the U.S. was close. ¡°(Kim¡¯s visit and the possible second talks) will be other turning points that will firmly solidify peace on the peninsula,¡± he said.

Meanwhile, the president urged Pyeongyang and Washington to reach a compromise on what they agreed on in Singapore last year and discuss specific rather than abstract measures in the second meeting. He also urged Kim to ¡°be bolder in taking steps toward denuclearization.¡±

President Moon also said peace on the peninsula will bring economic benefits to South Korea like the reconnection of railroads and roads between both Koreas, as well as the reopening of the Gaeseong Industrial Complex and tourism at Geumgangsan Mountain; he said such projects will prove economically beneficial to both sides. To facilitate inter-Korean collaboration, he urged global cooperation to ease international sanctions on Pyeongyang.

Foreign journalists on Jan. 10 raise their hands to ask questions during a Q&A session with President Moon Jae-in at his New Year¡¯s news conference.

Concrete Results

Since his inauguration in May 2017, President Moon has implemented economic and inter-Korean strategies considerably different from those of previous administrations. He has emphasized narrowing the growing wealth gap and improving quality of life for the people by raising the minimum wage and shortening the workweek. He is also credited with reenergizing stalled dialogue with the North.

Despite growing criticism and worry over the path the government took last year, especially from the unemployed and small business owners affected by rising wages, President Moon said he is confident and determined to continue on ¡°the path that we must take.¡±