Lee says now is time to expand economic pie, rather than welfare

President Lee Jae Myung emphasized on Wednesday that it is unattainable to strive for both economic growth and welfare expansion at present, advocating for a greater focus on expanding the economic pie instead of welfare. In a message posted on his X account, the president underscored that the government's budget proposal for the upcoming year, revealed through a media column, seemed to have insufficient funds allocated for welfare distribution.

Lee stressed that while aiming for growth alongside welfare expansion would be ideal, it is currently impractical. He reiterated, "Now is inevitably the time to focus on growth to expand the pie." Despite this, Lee clarified that the government has not reduced welfare spending. He warned that failing to restore sustained growth and entering a period of zero or negative growth could exacerbate economic polarization, potentially leading to a decline in welfare standards.

The president also noted that the government is closely monitoring the implementation of improved welfare policies, acknowledging that additional time may be required before further measures can be enacted. The day prior, the government unveiled a record budget of 820.9 trillion won (US$599 billion) for the following year, marking an increase of over 10 percent from the current year.

This surge in budget allocation was attributed to anticipations of higher tax revenues resulting from a booming semiconductor industry. During a Cabinet meeting on the same day, Lee highlighted bolstering the nation's global industrial competitiveness as a primary objective within the proposed budget.