South Korea's Lee makes inequality a core policy test
· UPIJuly 2 (Asia Today) -- South Korean President Lee Jae Myung said Thursday that reducing the country's widening economic divide will be a central test of his administration and called for policies that help young people build assets.
Lee also said the government's recently announced three megaprojects should transform regions across the country into a "Korean version of Silicon Valley" and create new opportunities for younger generations.
Lee made the remarks during a meeting of senior aides at the Blue House, where officials discussed an analysis of government spending for young people and plans to restructure youth policy.
Lee described the widening divide as "K-shaped polarization," a term referring to an economy in which some groups experience rising income and wealth while others fall further behind.
"If we leave K-shaped polarization unaddressed, productivity will decline, growth potential will be damaged and even national unity and social stability will be shaken," Lee said.
He directed officials to approach the issue with the understanding that the success or failure of the administration depends on reducing inequality.
Lee called for stronger basic social protections, a fairer labor market, support for neighborhood businesses and greater access to what he described as an "asset ladder" that would allow young people and other citizens to accumulate wealth.
The president also discussed the government's Culture and Arts Pass during a closed portion of the meeting, raising questions about the ages of eligible recipients, conditions of use, the application process and the size of the program's budget.
Lee said programs that receive strong public satisfaction and deliver benefits people can feel should be considered for expansion or adapted for use in other policy areas.
He also directed officials to use expected additional tax revenue efficiently to establish stable funding for investments in younger and future generations.
The remarks suggested that additional revenue should not be used solely for short-term spending but should also help create long-term foundations for education, employment and economic growth.
Lee presented the government's three megaprojects as part of that investment strategy.
"The Park Chung-hee administration opened the way for an export-driven nation by promoting heavy and chemical industries in the 1970s, and the Kim Dae-jung administration laid the foundation for the country to become an information technology power in the 2000s," Lee said.
"The three megaprojects are the path for South Korea to become the ultimate winner of the Fourth Industrial Revolution and a historic decision for future generations," he said.
Lee said the projects should expand the country's centers of economic growth beyond the overcrowded Seoul metropolitan region and distribute investment more widely.
"We must turn the entire country into a Korean version of Silicon Valley," Lee said.
He instructed the Blue House and government ministries to move quickly on revising related policies and regulations, securing budget support and preparing follow-up investment plans.
The strategy is intended to establish new industries and employment opportunities outside the capital region while giving young people throughout the country greater access to future growth.
Lee also called for heightened preparations for disasters during the summer monsoon season.
"Along with the central government's efforts, what is truly important is the role of local governments," Lee said.
He warned that some newly inaugurated local administrations or governments that recently changed leadership could be less prepared to respond to emergencies and urged officials to exercise particular caution.
-- Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260702010001023