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President Lee Jae-myung Links Europe’s Protests to South Korea’s Low-Growth Risks
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Cabinet Meeting Highlights (October 27)
At a cabinet meeting held at Cheong Wa Dae on October 27, President Lee Jae-myung warned that South Korea must treat recent large-scale protests in European nations as a cautionary example. He identified prolonged low economic growth as the fundamental driver of social turmoil abroad and cautioned that similar dynamics could destabilize South Korean society if left unchecked.
Economic Context and European Unrest
President Lee explained that youth unemployment and widening polarization, both symptoms of sustained low growth, have intensified social conflict in Europe. He noted that experts attribute the unrest to rising fuel costs, high prices, stagnant economies, and entrenched inequality. While acknowledging South Korea’s strong macro-indicators—particularly a current-account surplus in the second quarter that ranked second worldwide and surpassed the combined surpluses of Germany and Japan—Lee stressed that living-standard improvements remain uneven, with persistent gaps in income, assets, and jobs, especially for young people.
Policy Proposals and Fiscal Measures
To counter low-growth risks, Lee called for accelerated investment in advanced industries and faster execution of public-works projects. He urged officials to expand housing-construction starts, arguing that increased housing supply would both address demand and revive the sluggish construction sector. Lee suggested that, if necessary, the government should employ both state-backed credit guarantees and direct fiscal support to boost these initiatives. He also emphasized that a solid growth foundation would stabilize the national debt ratio as the economy expands.
Implications for South Korea’s Growth Outlook
Lee’s remarks tie external social instability to domestic economic policy, framing sustainable growth as essential for social cohesion and fiscal health. By linking accelerated public investment and housing expansion to broader demand creation, the administration aims to translate strong external balances into tangible improvements in everyday living conditions, thereby reducing the risk of the social unrest observed in Europe.