President Lee Jae-myung, shadowed by inequality, calls for 'growth for all'
In his address on the 2027 budget bill delivered at the National Assembly on Tuesday, President Lee Jae-myung stressed that South Korea must move away from "growth for the few," where the opportunities and gains of growth are concentrated in specific regions, classes, and a handful of companies, and make a sweeping shift toward "growth for all" enjoyed by every citizen. Budget-related policy speeches are normally given around November when the budget bill is being processed, and the president's speech was also delivered at a National Assembly plenary session on Tuesday.
In the same address, President Lee assessed that the economy has maintained a clear V-shaped recovery since his administration took office. He said the government protected the economy and people's livelihoods from the shock of the Middle East war by expanding the role of fiscal policy through two supplementary budgets (additional spending approved when the year's budget falls short) and an expansionary main budget. As evidence, he cited a potential growth rate (the economy's inherent capacity for growth) rebounding for two consecutive years, annual exports approaching the $1 trillion mark, and per capita gross national income (income earned per citizen) surpassing $40,000.
President Lee diagnosed that inequality and polarization persist in Korean society, noting that the door to a first job remains high for young people, small business owners face difficult conditions, and the recovery of regional economies is sluggish. To overcome the limits of "K-shaped growth," he emphasized, the country must break free from the old binary debate of growth versus distribution and adopt a new formula for growth.
President Lee presented three key livelihood projects—jobs, financial support for ordinary citizens, and housing stability—as the first steps toward resolving polarization. He said the "three mega projects" and "seven seeds" would yield greater effects on this foundation.
Total spending for 2027 is set at 820.9 trillion won, up 12.8 percent from this year, the largest in history. President Lee explained that the budget was expanded this much to simultaneously raise both the standard of living citizens deserve given the nation's economic achievements and the country's future capabilities. He said the budget was drafted under three principles: invest boldly without wasting resources on inefficiency, prioritize fiscal spending over tax expenditures, and favor the regions.
President Lee said the government carried out spending restructuring covering 6,476 projects totaling 107.2 trillion won, including the elimination of more than 2,100 projects. He also reported that 1.9 trillion won in tax expenditures was converted into fiscal support. Closing his address, President Lee said that next year, the public funds injected during the foreign exchange crisis will be fully repaid, completing the country's recovery from the IMF crisis after 30 years—a feat, he said, achieved together by the National Assembly, the people, business leaders, and workers.
