South Korean President Yoon Suk-yeol\u2019s first formal press conference in nearly two years aimed to reshape his administration\u2019s public image and address key issues but delivered mixed results. While Yoon struck a more apologetic and communicative tone following his party\u2019s recent election loss, his positions on major controversies remained largely unchanged.<\/span><\/p>\n
For instance, Yoon\u2019s stance on domestic issues, such as investigations into a marine\u2019s death and the various scandals involving the first lady, stayed consistent with only slight modifications in tone.<\/span><\/p>\n
On foreign policy, Yoon expressed a desire for \u201camicable\u201d relations with Russia despite its cooperation with North Korea in its invasion of Ukraine. His remarks on societal issues centered around the country\u2019s low birth rate, including plans for a new ministry to tackle the problem, but he neglected to address its underlying causes.<\/span><\/p>\n
The president\u2019s economic comments emphasized tax cuts and deregulation, signaling that he will maintain traditional conservative policies.<\/span><\/p>\n
Korea Pro<\/span><\/i> selected and summarized Yoon\u2019s most important remarks from the press conference and assessed what was new and what was not.<\/span><\/p>\n
Presidents Joe Biden and Yoon Suk-yeol hold a joint press conference at the White House, April 27, 2023 | Image: POTUS Twitter<\/a><\/em><\/p><\/div>\n
FOREIGN POLICY: RUSSIA, THE U.S., JAPAN<\/b><\/p>\n
South Korean doctors protest against the government’s plan to expand medical school quotas starting in 2025, Feb. 25, 2024 | Image: Korean Medical Association<\/a><\/em><\/p><\/div>\n
SOCIETY: LOW BIRTHRATE, MEDICAL REFORM<\/b><\/p>\n
Semiconductor wafers | Image: Canva<\/em><\/p><\/div>\n
ECONOMY: SEMICONDUCTORS, TAX CUTS, PENSIONS, DEREGULATION<\/b><\/p>\n
Semiconductors:<\/b> Regarding semiconductors, Yoon stressed the importance of timely investments in infrastructure, such as utilities, which he considered valuable as subsidies. He defended his push for corporate tax cuts, arguing that they are crucial for maintaining competitiveness in the semiconductor industry. Yoon pledged to push the National Assembly to increase support for the sector, equating tax deductions with subsidies in terms of their economic impact.<\/span><\/p>\n
Financial Investment Income Tax (FIIT):<\/b> Yoon advocated for the abolition of the FIIT, citing concerns about potential capital flight due to higher relative taxes on financial gains compared to other developed countries. He said he plans to strongly urge the opposition to cooperate in preventing the detrimental effects seen in markets like Taiwan, which reconsidered similar measures following market upheaval.<\/span><\/p>\n
Pensions:<\/b> Yoon criticized previous governments for neglecting the pension issue and highlighted his administration\u2019s efforts in preparing extensive data, including population projections, to facilitate legislative decisions. He vowed to ensure pension reforms are finalized during his term and announced plans to increase the basic pension to $290 (400,000 won).<\/span><\/p>\n
Real estate:<\/b> Yoon blamed the previous Moon Jae-in administration\u2019s policies for \u201cdistorting market principles\u201d and causing spikes in sales and rental prices. He pledged to relax building and reconstruction regulations and reduce punitive taxation to normalize the market, emphasizing the need to persuade the National Assembly to support these changes.<\/span><\/p>\n
Cost of living:<\/b> Despite recent positive economic indicators, Yoon acknowledged the persistent high costs of living, particularly fresh food prices. He outlined measures such as targeted discounts and better utilization of import duties to control food prices. Yoon proposed using allocated tariffs and diversifying import sources to reduce expenses attributed to imported food prices and wages.<\/span><\/p>\n
WHAT\u2019S NEW?<\/b><\/p>\n
While Yoon\u2019s commitment to increasing the basic pension to $290 represents a significant new pledge, the other economic policies he discussed during the press conference are largely consistent with his previous positions.<\/span><\/p>\n
However, it is noteworthy that Yoon is reinforcing his stance on several contentious issues, such as eliminating the FIIT and deregulating the real estate sector. These policies will likely face strong opposition from the majority-held opposition in the 22nd National Assembly, making their implementation uncertain.<\/span><\/p>\n
Moreover, Yoon\u2019s stance comes after a period of adopting less conservative, arguably populist economic and financial measures, such as banning stock short-selling and freezing utility prices in the past year.<\/span><\/p>\n