Next, let's get a recap of what Moon Jae-in pledged during his time on the campaign trail,...
starting with the economy.
It's one of the issues the public cares about most,... especially in the face of Korea's
soaring youth unemployment rate.
Here's Kim Min-ji with a rundown of the new president's economic plans.
There are growing concerns that Korea may be heading toward a prolonged cycle of low
growth.
With a rising youth unemployment rate... and record-high household debt,...
Korea is on track to posting growth in the two-percent range for three years running.
Korea's next leader believes he has the right prescription for the country's ailments.
- "I will change the economic growth structure
to one that focuses on the people, invests in the people and makes the nation more competitive."
"What we mean by a people-centered economy is... we will use resources to invest in the
people.
There's economic growth but it's not felt by the general public.
Income growth remains stagnant.
So, by giving support to lower-income households and the self-employed... will hope to boost
their livelihoods."
The first goal is to create 810-thousand jobs in the public sector.
With the youth jobless rate at a record high of 9-point-8 percent last year -- much higher
than the country's entire 3-point-7 percent unemployment rate -- young people, in particular,
are struggling.
"Of the 810,000 jobs created, 170,000 will be civil servants,... while some 300,000 will
be devoted to converting irregular workers into salaried employees.
The additional 340,000 will be created in conjunction with the private and social service
sectors -- for example, health care, safety and education."
This is seen as a must, as consumption has been sluggish amid stagnant income growth
and skyrocketing household debt -- which stands at a record high of roughly 1-point-3 trillion
U.S. dollars.
On top of this, the country has posted growth in the zero-percent range for six straight
quarters,... prompting Moon to promise to make good use of fiscal stimulus measures.
"We plan to implement a supplementary budget and step up fiscal spending.
International organizations like the OECD and IMF have said that Korea has enough room
to execute fiscal policy measures.
Despite a slight pick-up in the first quarter,... the recovery momentum isn't expected to continue
into the second quarter -- so we need the budget supplement to stay on track."
Chaebol reform is also a priority.
Although Moon is not expected to take a hard line, given that Korea's family-run corporations
account for roughly half of the economy,... he has vowed to limit their power -- by making
better use of existing regulations... and stepping up the role of the anti-trust watchdog.
"There will be stern punishments if they try to take advantage of their subcontractors...
or move in on small and medium-sized companies.
They will have to work harder to make profits and find new ways to be competitive, and in
this way will foster an innovative ecosystem."
In addition, a helping hand will be extended to companies and industries that are related
to the so-called fourth industrial revolution.
"The government is not going to have all the say -- but we believe it is right for it to
lead in pursuit of new directions.
We will foster the necessary infrastructure -- such as big data and 5G networks -- so
startups and other companies can both make a splash."
All of this is aimed at changing Korea's economic structure -- which Moon says is outdated.
"For too long, we have depended on exports and a trickle-down effect for growth.
We need to take a two-track approach by creating more jobs and expanding people's spending
power and let it work its way up.
This is not something that happens overnight, though.
We need to push through with strategies for the next decade or two."
With the economy in such a fragile state,...
Moon's policies will be aimed at changing Korea's economic architecture... and cushioning
any negative impact to help the country achieve sustainable growth.
Kim Min-ji, Arirang News.